The European Commission has approved a €350 million (US$380 million) plan to support strategic industrial equipment for Portugal's domestic net-zero economy, including the manufacturing of solar panels in the country, as well as the production of wind turbines, batteries, heat pumps, electrolyzers, and storage equipment. This aid will be provided in the form of direct grants, with an effective period until December 31, 2025. The Commission clarified that after this date, regular state aid rules will continue to apply.
According to the European Commission's Temporary Framework for State Aid during the COVID-19 outbreak and the Recovery and Resilience Facility (RRF), the incentive will be fully funded through the RRF. Portugal's RRF plan amounts to €22.2 billion (US$24.1 billion), including €16.3 billion (US$17.7 billion) in grants and €5.9 billion (US$6.4 billion) in loans.
It is worth mentioning that Portugal has updated its National Energy and Climate Plan (NECP) with a target to achieve a solar photovoltaic installed capacity of 20.4 GW by 2030.
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