The scheme was approved under the State Aid Temporary Crisis and Transition Framework (‘TCTF'), adopted by the Commission on 9 March 2023, and amended on 20 November 2023 and 2 May 2024.

Portugal notified the Commission, under the TCTF, a €1 billion scheme to support investments for the production ofrelevant equipment necessary to foster the transition to a net-zero economy.

Under this measure, the aid will take the form of direct grants. The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heat pumps, electrolyzers, equipment for carbon capture usage and storage, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production.

The Commission found that the Portuguese scheme aligns with the conditions set out in the TCTF. In particular, the aid (i) will incentivise the production of relevant equipment for the transition towards a net-zero economy; and (ii) will be granted no later than 31 December 2025.

The Commission concluded that the Portuguese scheme is necessary, appropriate, and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the Green Deal Industrial Plan, in line with Article 107(3)(c) TFEU and the conditions set out in the TCTF.