Review of the National Energy and Climate Plan 2030 (PNEC 2030)

1. What is the PNEC 2030?

The National Energy and Climate Plan 2030 (PNEC 2030) is Portugal’s main energy and climate policy instrument for the decade 2021-2030. This plan establishes targets and measures for decarbonizing the economy, energy transition, and integrating renewable energies. It is in line with international and European Union (“EU”) commitments.

2. What was the objective of this review of PNEC 2030?

The review of the PNEC 2030 aims to update the previously established targets and measures—ensuring alignment with the new international and EU developments in energy and climate policy—and adapt it to the new Base Law on Climate. Following a public consultation, the plan’s approval by the Council of Ministers, a document being sent to the Parliament of the Republic, and the European Commission’s recommendations, Resolution of the Parliament of the Republic 127/2025 of April 10, 2025, updating the PNEC 2030, has now been published.

3. What are the main PNEC 2030 targets?

The main PNEC 2030 targets include:

• a 55% reduction in greenhouse gas emissions by 2030 compared with 2005;
• a 51% increase in the renewable energy quota in gross final consumption;
• a reduction in the consumption of primary and final energy, with targets of 16,711 ktoe and 14,371 ktoe, respectively;
• setting the electrical interconnection at 15% (maintaining the same target as in the original version of PNEC 2030; and
• a 29% increase in the percentage of renewable energy integrated into transport.        

4. What are the general PNEC 2030 measures?

• Decarbonization: Implementing policies and measures to reduce greenhouse gas emissions in all sectors of the economy, promoting energy efficiency and the use of renewable energy.        
• Energy efficiency: Promoting measures to increase energy efficiency in buildings, transport, industry and other sectors, reducing energy consumption and the associated emissions.
• Energy security: Adopting measures to ensure the security of the energy supply, promoting the diversification of energy sources and the resilience of energy infrastructure.
• Internal energy market: Promoting the integration of the internal energy market, facilitating interconnection and regional cooperation.  
• Research, innovation and competitiveness: Encouraging research and innovation in energy and climate technologies, promoting the competitiveness of the Portuguese economy.

5. What are the electricity-related measures?

• Increase in renewable production capacity: PNEC 2030 foresees a strong increase in the electrification of consumption and accelerated exploitation of renewable energy’s potential, focused in particular on onshore and offshore solar and wind technologies. See our Post Allocation plan for offshore renewable energy.
• Renewable energy auctions: Portugal will continue to launch auctions for electricity production from offshore solar and wind energy, capitalizing on the success of previous auctions.
• Decentralized production: Promoting decentralized energy production, including individual and collective self-consumption, to reduce losses in energy distribution and transmission.

6. What are the hydrogen-related measures?

• Developing the green hydrogen industry: Portugal is counting on the development of a green hydrogen production industry, through water electrolysis using solar and wind electricity. See our publication Portugal. Overview of hydrogen regulations.
• Incorporating hydrogen into the gas system: Promoting the incorporation of renewable hydrogen into the national gas system, with the creation of local grids for hydrogen distribution. See our Post Changes to the national gas transmission grid regulation.
• Hydrogen infrastructure: Strengthening regional cooperation to create the European green hydrogen corridor, including the interconnection between Portugal and Spain.

7. What are the biomethane-related measures?

• Biomethane Action Plan 2024–2040 This plan envisages replacing up to 18.6% of gas consumption with biomethane by 2030, promoting the decarbonization of the national gas system. See our Post Biomethane Action Plan Monitoring Group.
• Centralized purchasing auctions: Implementation of an auction system for centralized purchasing of renewable biomethane and hydrogen, incentivizing the internal production of these gases.
• Injecting biomethane into the gas grid: Regulations to promote injecting biomethane into the public gas grid, eliminating technical and commercial barriers.

8. What are the biomass-related measures?

• Biomass recovery: Promoting the recovery of energy from forest biomass waste, contributing to forest management and fire prevention. Using biomass for energy production is considered a sustainable way of creating value in the forestry sector and preventing forest fires.
• Decentralized thermal plants: Support for establishing small decentralized thermal plants using waste biomass, promoting the replacement of fossil fuels and decarbonization of consumption in the various sectors.
• Biomass collection and storage centers: Promoting and supporting the creation of municipal or intermunicipal centers for the collection, storage, and provision of biomass, optimizing the processes for collecting and receiving biomass.
• Information and awareness-raising sessions: Holding professional training sessions and disseminating good practices for using forest waste biomass, including the production of manuals and other informative materials.

9. What are the building-decarbonization-related measures?

• Energy renovation of buildings: Promoting the energy renovation of the national housing stock, focused on electrification and improving energy efficiency.
• Energy certification: Reviewing the building energy certification system to include new energy efficiency requirements and promote carbon-free emission buildings.
• Financing programs: Creating financing programs for replacing inefficient heating and cooling systems with more efficient renewable solutions. 

10. How will the implementation of the PNEC 2030 be monitored?

The implementation of the PNEC 2030 policies and measures will be monitored by the National System of Policies and Measures (“SPeM”), which monitors progress and ensures compliance with energy and climate obligations.

11. What are the expected benefits from implementing the PNEC 2030?

Implementing the PNEC 2030 should result in:

• a significant reduction in greenhouse gas emissions;
• increased energy security and reduced dependence on fossil fuels;
• promoting innovation and creating skilled jobs in green sectors; and
• improved air quality and public health, especially in high-density urban areas.