PORTUGAL NATIONAL ENERGY AND CLIMATE PLAN 2021-2030 (NECP 2030) Portugal, December 2019 Contents NECP 2030 Table of Contents 1. OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN ........................................................................................................ 1 1.1. Summary .............................................................................................................................................................................. 1 1.1.1. Political, economic, environmental, and social context of the plan ....................................................................... 1 1.1.2. The five dimensions of the Energy Union strategy ................................................................................................. 4 1.1.3. Overview of the plan’s main objectives, policies and measures .......................................................................... 12 1.2. Overview of the current policy situation ........................................................................................................................... 15 1.2.1. National and EU energy system and the policy context of the national plan ....................................................... 15 1.2.2. Current energy and climate policies and measures across the five dimensions of the Energy Union ................. 18 1.2.3. Key issues of cross-border relevance .................................................................................................................... 22 1.2.4. Administrative structure for implementing national energy and climate policies ............................................... 23 1.3. Consultations and involvement of national and EU entities and their outcome ............................................................... 25 1.3.1. Involvement of the national Parliament ............................................................................................................... 25 1.3.2. Involvement of local and regional powers ............................................................................................................ 25 1.3.3. Consultations with stakeholders, including social partners, and engagement of civil society ............................. 25 1.3.4. Consultations with other Member States ............................................................................................................. 28 1.3.5. Iterative process with the European Commission ................................................................................................ 28 1.4. Regional cooperation in preparing the plan ...................................................................................................................... 29 1.4.1. Aspects subject to joint planning or coordination with other States ................................................................... 29 1.4.2. Explanation of how regional cooperation is considered in the plan..................................................................... 29 2. NATIONAL OBJECTIVES AND TARGETS ................................................................................................................................... 30 2.1. Dimension Decarbonisation ............................................................................................................................................... 30 2.1.1. Objectives relating to GHG emissions and removals ............................................................................................ 30 2.1.2. Objectives relating to renewable energy sources. ................................................................................................ 33 2.2. Dimension Energy efficiency .............................................................................................................................................. 41 2.3. Dimension Energy security ................................................................................................................................................. 44 2.4. Dimension Internal Energy Market .................................................................................................................................... 46 2.4.1. Electricity interconnectivity ....................................................................................................................................... 46 2.4.2. Energy transmission infrastructure ........................................................................................................................... 46 2.4.3. Market integration .................................................................................................................................................... 48 2.4.4. Energy poverty .......................................................................................................................................................... 50 2.5. Dimension Research, innovation and competitiveness ..................................................................................................... 51 3. POLICIES AND MEASURES PLANNED ...................................................................................................................................... 53 3.1. Dimension Decarbonisation .......................................................................................................................................... 53 3.1.2. Renewable energy ..................................................................................................................................................... 67 3.1.3. Other items ............................................................................................................................................................... 76 3.2. Dimension Energy efficiency.......................................................................................................................................... 87 3.3. Dimension Energy security ............................................................................................................................................ 95 3.4. Dimension Internal energy market .............................................................................................................................. 101 3.4.1. Electricity infrastructure ..................................................................................................................................... 101 3.4.2. Energy transmission infrastructure ..................................................................................................................... 103 3.4.3. Market integration .............................................................................................................................................. 103 Contents NECP 2030 3.4.4. Energy poverty .................................................................................................................................................... 106 3.5. Dimension Research, innovation and competitiveness ............................................................................................... 109 4. CURRENT SITUATION AND PROJECTIONS WITH EXISTING POLICIES AND MEASURES ......................................................... 116 4.1. Projected evolution of main exogenous factors influencing energy system and GHG emission developments ........ 116 4.2. Decarbonisation dimension ......................................................................................................................................... 118 4.2.1. GHG emissions and removals .................................................................................................................................. 118 4.2.1.1. Total greenhouse gas emissions in Portugal ....................................................................................................... 118 4.2.1.2. Projections of sectorial developments with existing national and EU policies and measures at least until 2040 (including for the year 2030) ...................................................................................................................................................... 121 4.2.2. Energy from renewable sources ....................................................................................................................................... 123 4.3. Dimension Energy efficiency........................................................................................................................................ 126 4.4. Dimension Energy security .......................................................................................................................................... 135 4.5. Dimension Internal Energy Market .............................................................................................................................. 141 4.5.1. Electricity interconnections ..................................................................................................................................... 141 4.5.2. Energy transmission infrastructure ......................................................................................................................... 143 4.5.3. Electricity and gas markets, energy prices ....................................................................................................................... 148 4.6. Dimension Research, innovation and competitiveness ............................................................................................... 151 5. IMPACT