In this second edition of 2025 of our Energy & Climate Change Insight newsletter, we highlight the main recent developments in the energy and environment sectors in Portugal.
The quarter under review proved to be particularly dynamic, with significant advances and new developments, largely driven by the entry into office of the XXV Constitutional Government, now fully in office.
Although we are still waiting with expectation for the approval of important legislative instruments that have long been talked about, such as, for example, a more in-depth amendment to the law governing the National Electricity System, with a view to transposing part of Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June, 2019 and also part of Directive (EU) 2018/2001 of the European Parliament and of the Council, of 11 December, 2018 (which has since been revised by Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 of October, 2023, also known as the RED III Directive), this quarter has brought us important instruments that should be given the utmost attention by the value chain and all those involved in energy and the environment, including the following:
On the regulatory side, DGEG Order no. 14/2025, of 2 of April, amended by Order no. 16/2025, of 7 of April, which shared the Directorate-General's understanding of the deadlines for issuing production licenses and operating licenses. This clarification was necessary following the entry into force of the new wording of article 14 of Decree-Law no. 15/2022, of 14 of January, granted by Decree-Law no. 99/2024, of 3 of December.
Without dwelling on the doubts that may surround this new wording of Article 14, especially as regards the applicability of the maximum period of 2 years for the processes of granting a production and operating license to pending processes, this Order clarifies that the period of suspension of the counting of this period during the construction phase of renewable energy power plants begins with the most recent date of the following documents: (i) copy of the prior notice submitted to the City Council or (ii) copy of the document proving approval of the execution project, in cases where the urban planning procedure follows the prior licensing modality. It should also be clarified that this suspension also applies to projects for which the production license was issued before Decree-Law no. 99/2024 of 3 of December came into force, provided that the issuance of the operating license is still pending.
It should also be noted that the government, through Order no. 170/2025 of 19 of May of the Minister of the Environment and Energy, extended the deadlines referred to in paragraph 1 of Joint Order No. 1/SEAMB/SEENC of the Secretary of State for Energy and Climate and the Secretary of State for the Environment for an additional period of 12 months, making it possible to give an additional break to promoters who face difficulties in licensing their projects which, as we know, is a common reality in the sector.
On the legislative side, it is worth highlighting (i) Decree-Law no. 81/2025 of 22 May, which amends the General Waste Management Regime, completing the transposition of Directive (EU) 2018/851 of the European Parliament and of the Council of 30 of May, 2018, after the European Commission concluded that the transposition of the Waste Framework Directive was not complete and initiated infringement proceedings against the Portuguese Republic, (ii) Decree-Law no. 85/2025 of 24 May, 2018, which amends the General Waste Management Regime, completing the transposition of Directive (EU) 2018/851 of the European Parliament and of the Council of 30 May, 2018, after the European Commission concluded that the transposition of the Waste Framework Directive was not complete and initiated infringement proceedings against the Portuguese Republic, ii) Decree-Law no. 85/2025, of 24 of June, which sets important targets for the integration of energy from renewable sources for the industry and transport sectors, amending the well-known Decree-Law no. 84/2022, of 9 of December, which commits the country to meeting the targets agreed in the Paris Agreement, and (iii) the latest amendment to the National Energy and Climate Plan through Assembly of the Republic Resolution no. 127/2025, of 10 of April, 2025.
Finally, it should be said that this was also an important quarter in terms of public consultations, in particular the publication of the proposal to amend the Electricity Sector Tariff Regulation, the PDIRT and the Manual of Procedures for the activity of registration and bilateral contracting of electricity, all launched by ERSE and with deadlines already passed.
Good reading.
