The European Commission has approved a 1 billion Portuguese scheme to support investments in the production of equipment necessary for the transition to a net zero economy, in line with the Green Deal Industrial Plan.

This plan is part of the "Temporary Crisis and Transition Framework for State Aid" (TCTF), created to accelerate the adoption of clean technologies and reduce dependence on fossil fuels.

According to information from the European Commission, the aid will take the form of direct grants. The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heat-pumps, electrolysers, equipment for carbon capture usage and storage, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production.

Aid can be granted until December 31, 2025, according to the Commission's statement.

“This Portuguese measure, endowed with 1 billion euros, supports investments in strategic equipment to accelerate the transition to a net zero emissions economy, such as batteries, solar panels, heat pumps, wind turbines, electrolyzers, and carbon capture, usage, and storage systems. This aligns with the objectives of the Industrial Plan of the Green Deal and the EU's climate neutrality goal, while ensuring that competition distortions remain limited,” stated Margrethe Vestager, Executive Vice President in charge of competition policy.

This measure aims to accelerate the energy transition in Portugal by facilitating investments in sustainable technologies, contributing to the EU's climate goals.