Decree-Law No. 99/2024: Changes to the Renewable Energy Regulatory Framework

Decree-Law No. 99/2024, published on 3 December 2024, introduces significant changes to the regulatory framework for renewable energy in Portugal, aiming to speed up the energy transition and meet national and European climate targets.

Key changes

• Simplified licensing: maximum deadlines of 2 years for onshore production licences and 3 years for offshore; prior registration cut to 1 month for solar units up to 100 kW and 3 months for other units.
• A new legal regime for energy storage, distinguishing stand-alone installations (connected directly to the public grid) from co-located installations, and allowing hybridisation of existing power plants.
• Standardised compensation for municipalities hosting installations above 1 MVA: transfer of a self-consumption unit, EV charging points, or a financial payment of 1,500 euros per MVA.
• A Scope Definition Proposal (PDA) is now mandatory for Environmental Impact Studies, with an EIA exemption for solar plants installed on buildings or artificial structures.
• Within the National Agricultural Reserve (RAN), up to 10% of contracted land (capped at 1 hectare) may now be occupied by solar power plants, subject to a compatible agricultural development project.
• The required guarantee bond was cut to 10,000 euros per MVA of reserved injection capacity, capped at 10 million euros.

Together, these measures aim to accelerate the energy transition, simplify administrative procedures and strengthen legal certainty for investors, consolidating Portugal's position as a leader in decarbonising the energy sector.