Allocation plan for offshore renewable energy

Council of Ministers Resolution 19/2025 approves the Allocation Plan for Offshore Renewable Energy (“PAER”) to promote the installation of 2 GW of offshore renewable energy capacity by 2030 , contributing to the decarbonization of the economy and the use of ocean energy resources in Portugal.  

Objectives and milestones

• Establish maritime space zones for the installation and operation of offshore renewable energy production units
• Create the conditions for the allocation and installation of 2 GW of offshore renewable energy capacity by 2030 through capacity auctions
• Establish the constraints applicable to these zones and the projects to be installed

Background

The National Energy and Climate Plan (“PNEC 2030”), approved on October 30, 2024, established the objective of allocating capacity and ensuring the installation of 2 GW of offshore renewable production capacity through capacity auctions by 2030.

A first version of the PAER had already been submitted for public consultation and was then the subject of a discussion and adjustment period with the involvement of various interested parties. The PAER was also subjected to a strategic environmental assessment procedure.

Identified maritime zones

The PAER concerns maritime zones along the western coast of the mainland selected for their favorable conditions for installing wind farms, especially those using floating technology.

According to the published map and the information contained in the PAER, the following zones were identified:

The PAER and its annexes contain a range of very relevant information regarding the technical and economic characteristics of the identified areas, such as (i) wind speed; (ii) number of operating hours equivalent to nominal power; (iii) wind power flow; (iv) bathymetries; (v) slopes; and (vi) seabed.

Considering the initial version of the PAER, the following changes and adjustments stand out:

• The final PAER area enables an installed capacity of around 9.4 GW for commercial projects, as opposed to the 10 GW initially planned and referenced in the PNEC 2030.
• The final version of the PAER includes a reduction of around 470 km2 from the proposal submitted for public discussion.
• The area to the north was reduced and the area to the south of Viana do Castelo was eliminated.
• The Leixões area was adjusted.
• The Ericeira area was eliminated.
• The Aguçadoura area north of Póvoa do Varzim (and only 4.6 km from the coast) is created for demonstration or research projects.

 There is no reference in the PAER to the priority to be followed in the auctions to be launched by the Portuguese government for allocating grid connection capacity, especially regarding which zones are to be chosen for the first auction and what the chronological order is for the launch of future auctions.

Interconnection with the public service electricity grid

Regarding the process of interconnecting the projects to be installed with the public service electricity grid on the mainland, Annex II (Sheet 6C) states that connecting the identified areas to the national electricity grid involves building specific infrastructure such as submarine cables and substations.

Under the indication of “Good Practices,” it is stated that to minimize the impacts on fishing and other maritime activities, submarine cables must be buried if technically possible. This measure aims to avoid further constraints for fishing and ensure the security of maritime operations.

Compatibility of uses and activities and identified constraints

The PAER is accompanied by the environmental report produced as part of the environmental assessment procedure to which it was subjected. It identifies the type of impacts of renewable energies from ocean sources, and in particular of offshore wind energy, that are most likely to occur in a marine environment and on underwater cultural heritage. It also includes the proposals needed to make activities and uses compatible, while safeguarding issues related to the security of the activities within commercial renewable energy parks.

The PAER discusses the compatibility of wind farms with uses and activities in the national maritime space, including fishing, recreation, maritime transport, defense, environmental protection, and cultural heritage.

The PAER identifies the uses and activities that may be compatible with the installation of offshore renewable production projects, as well as a number of constraints that must be considered during the later approval of each project, where this compatibility should be specifically determined.

Considering the information available in the PAER, the following constraints—which are explained further in the text of the plan—are highlighted:

Impact on seabirds:

• Collision with wind turbines
• Disturbance and displacement of birds, resulting in loss of habitat
• Obstacle effects, increasing flight distances and energy expenditure
• Loss and degradation of support habitats
• Indirect effects on their prey due to habitat changes

Impact on marine mammals:

• Adverse effects on cetaceans due to underwater noise during the installation and operation of wind farms
• Disturbance to the feeding and reproduction activities of marine mammals

Impact on marine habitats:

• Changes in atmospheric and oceanic dynamics
• Electromagnetic effects of cables on marine species
• Changes in the habitat of fish communities and benthic and pelagic invertebrates
• Effects of underwater noise on marine species
• Structural impediments to marine life and changes in water quality

Impact on underwater cultural heritage:

• Need to safeguard the existing underwater cultural heritage in the areas proposed for offshore wind farms

Impact on fishing:

• Constraints on commercial fishing activity, especially for vessels using mobile drag mechanisms or drift nets
• Need to adapt fishing procedures for operating within wind farms.
• Fishing vessels may cease activity to avoid overfishing in other areas

Impact on aquaculture:

• Potential for synergies between offshore renewable energy and aquaculture, using floating platforms to support aquaculture production equipment
• Challenges related to the development of technology and materials resistant to maritime agitation and more complex licensing procedures

Navigation:

• Constraints on the movement of vessels within the commercial parks
• Need to ensure navigation corridors to access the main ports

Recreation and tourism:

• Possible impacts on the seascape and recreational diving in archaeological sites
• Constraints on the development of tourist-recreational use near wind farms

Next steps

• As the PAER was the main regulatory instrument that had not yet been approved before the capacity auctions were launched, the next step is expected to be the launch of these auctions.
•  The PAER does not mention which auction model will be followed, specifically whether there will be just one phase for the joint allocation of capacity reserve certificates (“TRC”) and private use of maritime space certificates (“TUPEM”), or two phases, in which TUPEM will be awarded first and then the TRC. However, according to the publicly available information previously provided by the government, the most likely option is that these auctions will follow a two-stage model.
•  The electricity production remuneration model has not yet been established, which in principle will only happen when the auction rules are released. However, a model based on Contracts for Difference (CfD) or another type of state support is expected, which will make it financially viable to develop floating offshore wind technology, making Portugal a pioneer in this field.
• As the areas to be allocated to the offshore wind energy capacity auctions have already been determined, promoters interested in participating in the auctions should analyze the information provided and agree on possible consortia to participate in the auctions, thus ensuring that they are properly prepared when the tenders begin.