The energy regulator has deemed the plan by REN — Redes Energéticas Nacionais to invest 1.7 billion euros in the electric grid as balanced but advised justifying the necessity of the projects with the most recent network developments.
“ERSE considers that, overall, the proposal made by ORT in the context of PDIRT-E 2024 [National Transport Network Development and Investment Plan for the electricity sector, for the period 2025-2034] is balanced, as it seeks to respond to the growing challenges faced by network management due to the transformation of the electricity sector,” stated the regulator’s opinion on the plan unveiled earlier this year.
However, ERSE has made several recommendations that REN may incorporate in the final document to be submitted for government approval, suggesting that the transport network operator “update and substantiate the necessity of the projects in light of the most recent network developments, considering the pace of implementation of previously approved PDIRT-E projects.”
The PDIRT-E 2024 proposal foresees a total investment scenario amounting to 1.691 billion euros, with 705 million euros to be implemented by 2029 and the remaining 987 million euros by 2034.
The regulator noted that in a scenario of electricity consumption reflecting an average annual growth rate of 1.7% between 2025 and 2029, the investment to be realized by 2029 (705 million euros) “would imply an average annualized tariff increase of +0.1 percentage points (p.p.) in retail prices for end customers,” compared to the base investment scenario, including investments approved in PDIRT-E 2017, PDIRT-E 2021, and others, to be brought into operation by 2029.
“These variations in retail prices for end customers are relatively small and can still be mitigated if demand exceeds the scenarios adopted until 2029, for example, a faster pace of electrification of society in the medium term,” ERSE emphasized.
The regulator also noted that “this change does not consider price variations in the other components that make up the final price for customers.”
PDIRT-Es are updated every two years, which means the 987 million euros investment foreseen for the second phase of the plan (2030-2034) may still be revisited.
The plan was subjected to public consultation, and REN may incorporate these contributions, along with ERSE’s opinion, in the final version of the document, which is subject to approval by the Council of Ministers Resolution.
