Commission Greenlights EUR 612 Million Portuguese Aid Scheme for Energy-Intensive Industries
The Commission has approved a EUR 612 million Portuguese State aid scheme aimed at reducing electricity levies for energy-intensive companies. The measure seeks to prevent these businesses—whose operations rely heavily on energy—from relocating to countries with less stringent climate policies.
Eligible businesses will benefit from a levy reduction of 75% to 85%, with a minimum charge of €0.5/MWh, until April 22, 2035. In return, beneficiaries must either follow energy audit recommendations, source at least 30% of their electricity from renewables, or invest half of the aid in emissions-reduction projects.
The Commission approved the scheme under the 2022 Guidelines on State aid for climate, environmental protection and energy (CEEAG), which allows Member States to grant aid in the form of reductions from electricity levies for energy-intensive users. The Commission considered that the scheme facilitates thedevelopment of certain economic activitiesrelying heavily on electricity and particularly exposed to international competition and is necessary, appropriate and proportionate.
For more information, see the Commission’s PR.