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Meet The Law - Updates in the Energy Sector - Deadline extensions and clawback

1.    Extension of the deadlines for the licensing of power plants

On May 20, 2022, an Order was published on the official website of the Directorate General for Energy and Geology (DGEG), which aims at ensuring equal treatment regarding the deadline extensions which were granted for the licensing of renewable energy power plants.

This order extends by 11 months the deadlines for obtaining the production licence and/or the operating licence for renewable energy power plants, as provided for in Decree-Law no. 15/2022 of January, 14.

In order to deal with the additional delays regarding power plants with installed capacity equal to 1MW or less (for which the respective owners are not to blame), the deadlines for obtaining the prior registration and/or the operating certificate are also extended by a period of 6 months.

By order of the Secretary of State for Environment and Energy, this deadline extensions are not applicable to the competitive procedures held in 2019 and 2020 for the award of solar injection capacity into the Public Grid.

Finally, this order clarifies that, for power plants covered by paragraphs 1 and 4 of article 4 of Decree-Law 30-A/2022, of 18 April, the granted deadline extension refers to the obtaining of the production license or prior registration and to the commissioning of the power plants.

This order may be consulted here.

2.    Order no. 6287/2022, of May 19    

Order no. 6287/2022, of May 19, published in the Portuguese Official Gazette, adjusts the value of the parameter that represents the impact of extra-market measures and events registered within the European Union on the formation of average electricity prices in Portugal.

Decree-Law no. 74/2013, of June 4, as amended, establishes a regulatory mechanism aimed at ensuring balanced competition in the wholesale electricity market in Portugal. This mechanism determines the compensation to be borne by national electricity producers who have benefited from gains not expected in said electricity market, caused by extra-market events external to the National Electricity System (SEN).

According to the Portuguese Energy Services Regulatory Authority (ERSE), the only extra-market event external to the SEN, capable of influencing the market price and the revenues of the different Portuguese producers, is the tax regime existing in Spain since 2013 which is applicable to power plants. However, these tax measures have been suspended again in Spain for a period of 3 (three) months from April 1st 2022.

Therefore, in order to ensure the harmonization of competitive conditions in the Iberian electricity market, it was decreed, by the Secretary of State for Environment and Energy, a zero unit value of the parameter, PemUE to be applied to the period between April 1st and June 30th, 2022, which corresponds to the suspension of the abovementioned tax measures in Spain.

Order no. 6287/2022, of May 19, may be consulted here

Authors

Portrait ofMónica Carneiro Pacheco
Mónica Carneiro Pacheco
Partner
Lisbon
Portrait ofManuel Cassiano Neves
Manuel Cassiano Neves
Partner
Lisbon
Portrait ofBernardo Cunha Ferreira
Bernardo Cunha Ferreira
Partner
Lisbon
Portrait ofDuarte Lacerda
Duarte Lacerda
Associate
Lisbon
Portrait ofFrancisco Verdelho
Francisco Verdelho
Associate
Lisbon
Catarina Pinto Santos
Mariana Santos
Rodrigo Pinto Guimarães
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