Portugal now has the ability to allocate up to 275 million euros to partially reimburse electro-intensive industries for costs incurred due to rising electricity prices from 2021 to 2030, according to a statement from the office of Maria da Graça Carvalho.
This support targets industries in “strategic sectors” of the economy, such as “metallurgy, chemicals, and paper,” which are described as being “particularly exposed to electricity price fluctuations,” the statement explained.
The aim of this support is to “compensate the electro-intensive sector for the increase in electricity prices, resulting from carbon costs in the European CO2 emissions market,” the statement added.
The rise in electricity prices is attributed to the carbon costs within the European Union’s Emissions Trading System for carbon dioxide (CO2).
“We are protecting national industries that are committed to the energy transition,” emphasized Environment and Energy Minister Maria da Graça Carvalho, as quoted in the communication.
According to the government, the compensations are “granted for the indirect emission costs incurred in the previous year, and if the applications exceed the available budget, the amount is proportionally reduced for each beneficiary.”
