PORTUGAL Trends and Developments Contributed by: André Miranda, Fieldfisher Portugal
Conclusion Portugal’s route to its 2030 targets runs through administrative modernisation as much as through investment. The PSZAER and Law No 29/2026 are two important pillars of that effort. The first one, once it is finalised, will be able to accelerate utility-scale pro- jects through pre-assessed zones; the other already accelerates distributed self-consumption through a new contract, positive administrative silence and a private law majority rule. Both give national effect to the RED III goal of smoother and faster deployment of renewable energy. By making the permitting and contracting of renew- able projects simpler and more predictable, these reforms aim to convert Portugal’s abundant natural resources into installed capacity, jobs and investment. Their full benefit will depend on their steady imple- mentation, together with timely decisions, sound envi- ronmental planning, close cooperation with municipal- ities and continued investment in the grid that carries the energy to the market. With all these elements in place, the two policies can become genuine engines of Portugal’s energy transition and of the economic growth that accompanies it over the coming years.
The wider economic dividend is considerable. Cheap- er, locally generated electricity will strengthen the competitiveness of Portuguese industry and services and will make the country more attractive to energy- intensive investment, from advanced manufacturing to data centres. A larger market supports a domestic value chain of developers, installers, electricians, equipment suppli- ers and operation and maintenance providers, while energy communities let citizens and municipalities share directly in the returns. Faster, more predict- able procedures also lower the cost of capital, help- ing more projects reach financial close and bringing investment forward. By substituting domestic gen- eration for imported fuels, a larger renewable base also strengthens Portugal’s energy security and trade balance, reinforcing the macroeconomic case for the reforms. By streamlining the authorisation of energy production and operation, the law shortens the path from deci- sion to construction and widens the range of busi- nesses that can take part. Together, the two tracks point to a deeper and more diversified renewables market — one in which large developers, energy ser- vice companies, equipment suppliers, installers and local communities all find room to grow.
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