Renewable Energy Tax Incentives in Italy and Portugal
In the current context of climate change and energy transition, tax incentives have become a crucial tool for promoting the development of renewable energies.
Italy and Portugal, two countries with high potential for clean energy generation, have implemented various tax policies aimed at accelerating the adoption of renewable technologies.
This article examines how these incentives are transforming the energy landscape in both countries, attracting investments, and promoting sustainability.
Italy
Italy has adopted an ambitious approach to boost renewable energies through tax incentives.
A notable example is the €5.7 billion scheme approved by the European Commission for the development of renewable energy communities.
This program not only offers an incentivized tariff based on the amount of electricity consumed by self-consumers and renewable energy communities but also provides a grant covering 40% of the total project cost.
This policy has resulted in a significant increase in small-scale renewable energy generation projects, promoting decentralization and sustainability in energy generation.
Portugal
In Portugal, tax incentives are also playing a crucial role in promoting renewable energies.
Portugal’s National Energy and Climate Plan (PNEC) includes specific measures to increase the penetration of renewable sources in the transportation system, such as tax incentives for the introduction of electric vehicles and the installation of charging infrastructure.
Additionally, the Portuguese legal framework facilitates decentralized electricity production, allowing the installation of production units for self-consumption (UPAC) without the need for building permits in most cases.
This approach has enabled sustained growth in solar energy production, supported by innovative business models based on energy service companies (ESCOs).
Policies
The results of these policies are evident. In Italy, the PNRR ter Decree has simplified the authorization process for the installation of renewable energy plants, reducing buffer zones around protected areas and integrating environmental assessments into the single authorization procedure.
These measures have not only accelerated project development but also increased investor confidence in the Italian market.
In Portugal, the adoption of favorable policies has led to a substantial increase in decentralized energy production, with a growing share of solar projects and increased investment in innovative technologies such as green hydrogen.
Tax incentives in Italy and Portugal have proven to be an effective tool for driving the development of renewable energies, attracting investments, and fostering innovation.
