In its assessment of REN Gasodutos’ draft plan for the Ten-Year Development and Investment Plan (PDIRG 2025), the ERSE has suggested an alternative scenario that reduces the proposed investment for the first five-year period from €163.2 million to €92.7 million. This adjustment is intended to reflect public consultations and the uncertainty surrounding future gas demand and the supply of decarbonised gases such as biomethane.
The regulator notes that this reduction will ensure “average annual tariff impacts are zero or marginal (+0.0 percentage points (p.p.) to +0.1 p.p.)” for final customer prices between 2025 and 2030.
The ERSE explains this downward revision aims to “ensure that PDIRG 2025, when materialized, will have investment levels between 2026 and 2028 comparable to those that have been operational in the last three years (2022 to 2024).”
REN has the option to revise its proposal before submitting it to the government, which holds the final decision on investments in the gas network, as the infrastructure is state-concessioned.
Additionally, ERSE emphasizes in its opinion released on Friday night that “the evaluation of the next PDIRG to be presented in 2027 will be an opportunity to reassess the investment developments, particularly between 2028 and 2030.”
The regulator also conditions the execution of projects to adapt the transport network and Carriço’s underground storage to hydrogen mixtures of up to 10%, requiring “assurance of their viability in terms of interoperability with consumers and adjacent network operators.”
The Carriço underground storage, located in the municipality of Pombal, is the main underground natural gas storage facility in Portugal.
Moreover, ERSE advises REN to “reschedule some base projects of the three infrastructures and cross-cutting investments, forecasting only those deemed urgent, unavoidable, and duly justified.”
The opinion also highlights the importance of investments in “security telecommunications networks, particularly concerning cybersecurity issues,” as well as initiatives that contribute to the decarbonisation of the natural gas sector.
ERSE believes this revision “strikes a balance between increasing amounts in base projects, acknowledged as necessary,” and the need to ensure the sector “remains competitive and sustainable over time, for all those who will continue to need gas for their consumption and production processes.”
