Last July, the government submitted for public consultation the latest revision of the National Energy and Climate Plan (PNEC 2030), a plan that defines the energy transition policy for our country until 2030.
This new version brings with it more ambitious targets for reducing greenhouse gas emissions, which now aim for a 55% reduction by 2030 (whereas the previous range was 45 to 55%). On the other hand, a new target has also been set for increasing the share of renewable energies in energy consumption, from 47% to 51%.
But are these targets feasible? What does the government propose to do to get there?
Even though the Minister for the Environment and Energy has made this a priority, highlighting the country’s potential in the field of renewable energies and the return this can bring to our country in terms of economic growth, job creation and competitiveness, are these targets real?
Our country faces some challenges, essentially linked to energy storage capacity and the connection to Europe. There’s little point in increasing the production of renewable energy if we can’t store or export it, although the government is committed to these issues, both in negotiating interconnections and in providing PRR support for investments in batteries.
The data released at the end of 2023 on installed capacity shows that in both photovoltaic solar and onshore and offshore wind, we are still far below what was expected and what would allow us to achieve the targets set. Will we be able to recover and increase installed capacity in such a way?
One of the challenges to achieving this has already been identified by the Ministry itself: licensing. The recently created Mission Structure for the Licensing of Renewable Energy Projects 2030 will play a fundamental role here, by being able to contribute (or not) to a real and practical acceleration of the licensing processes which, in the field of renewable energies, are always time-consuming and cause many investors to give up before they even begin.
There’s no doubt about the urgency of decarbonizing the national economy, nor that this path involves a lot of investment in renewable energies, but it’s also true that in Portugal we still have low levels of energy efficiency and an old-fashioned, low-quality building stock. On the other hand, we also need to look at the enormous challenges posed by a marginal wholesale market which, if it continues, could prevent future investment in renewables.
The definition of these more ambitious targets leaves the main players in the sector feeling optimistic, believing that the government may actually be willing to make the much-needed commitment in this area. We all have to make it happen!
Opinion article by Miguel Subtil – Managing Director, published in Ambiente Magazine, August 08, 2024.
