The European Commission has approved a Portuguese state aid scheme worth €612 million to support energy-intensive Portuguese companies, provided they cover at least 30% of their electricity consumption with renewable energy, implement energy audit recommendations, or invest in projects that significantly reduce greenhouse gas emissions. The aim of this measure is to prevent these energy-intensive businesses from relocating their operations to countries outside the EU with less ambitious climate policies.

The aid scheme, which will be in place until 22 April 2035, seeks to mitigate the risk of relocation for companies that rely heavily on electricity and are particularly exposed to international competition. Under this programme, businesses will receive a reduction of between 75% and 85% in their electricity levies, depending on their risk exposure. However, the reduction will not bring the levy below €0.5/MWh.

Beneficiaries must meet at least one of the following conditions: implement energy audit recommendations, cover at least 30% of their electricity consumption with renewable energy sources, or invest at least 50% of the aid in projects that lead to a substantial reduction in the installation’s greenhouse gas emissions.

The European Commission has assessed the scheme under EU state aid rules and considers it necessary and appropriate to contribute to the objectives of the "Clean Industrial Deal", an initiative aimed at improving the competitiveness and decarbonisation of European industries. The Commission has also ensured that the positive effects of the measure outweigh any potential negative impacts on competition and trade within the EU.

Teresa Ribera, Executive Vice-President for the Clean, Just and Competitive Transition, highlighted that this scheme strengthens the competitiveness of the supported companies, aligning with Portugal’s decarbonisation objectives while minimising distortions in competition.

This scheme is part of the broader "Clean Industrial Deal" strategy, which seeks to position decarbonisation as a key driver of growth for European industries, supporting their resilience in a highly competitive global environment.