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Government will present a proposal to Brussels to strengthen the E-Lar program

The government has allocated a total of 100 million euros to combat energy poverty, with 60 million euros earmarked for projects such as construction works. With the PRR set to conclude in 2026, the minister is proposing reallocating part of these funds towards household appliances.

“We will see what we can do in terms of financial reinforcements. The decision is not solely ours […] but also involves the PRR task force and the European Commission. It has been a successful program that people liked and responded to,” stated the Minister of Environment and Energy, Maria da Graça Carvalho, in Lisbon.

The minister, speaking to journalists on the sidelines of the ‘Portugal Renewable Energy’ summit, organized by APREN — the Portuguese Renewable Energy Association, clarified that the government holds a total of 100 million euros, with 60 million euros allocated for projects and 30 million euros for appliances.

The remaining 10 million euros from the Environmental Fund can be applied to either category, “but they will be applied to appliances, as they offer faster implementation,” she announced.

The minister also noted the challenges in executing construction works within a short timeframe, with the PRR execution period ending next year.

“I think execution will be quicker if we transfer some funds from construction to appliances,” she argued.

The minister expressed hope that the entire process would unfold “in a few days,” considering there will be no technical evaluation. It will simply be checked whether the applicant has debts to the Social Security and Tax Authority.

Additionally, the applicant’s group will be reviewed, as different budgets exist for those benefiting from the social electricity tariff.

Subsequently, beneficiaries will receive an email stating either that they have been approved or requesting the resolution of identified issues.

If approved, they will automatically gain access to the program conditions and, upon acceptance, receive the corresponding voucher “within five minutes,” emphasized the Environment and Energy minister.

Maria da Graça Carvalho also highlighted the need for “great trust between suppliers and the state, which fortunately is present,” with nearly 1,000 participating stores.

“Individuals do not pay upfront. They go to the store, make their purchase, and then it is between the supplier and the Climate Agency,” she explained.

The president of the Portuguese Association of Electronic and Digital Industry (AGEFE), Nuno Lameiras, remarked on Thursday that the E-Lar program is a positive step but has weaknesses and “insufficient financial allocation” given the strong demand.

In statements to Lusa, he emphasized that the government-launched program this week to support replacing gas appliances with more efficient electric solutions “clearly shows the potential in replacing old, less energy-efficient appliances with new ones,” but warned that the number of available supports “is very limited,” thus urging the government to enhance the planned funds.

The E-Lar program has an initial budget of 40 million euros to support the replacement of gas stoves, ovens, and water heaters with electric equipment of class A or above.

The aid can amount to 1,683 euros for vulnerable families, with a maximum of 1,100 euros for other applicants.

The E-Lar program has received nearly 25,000 applications as of Thursday, according to the latest data released by the government.

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