National Electrical System (NES)

In 2016, Portugal made a commitment to achieve carbon neutrality by 2050. In order to achieve this goal, the Roadmap for Carbon Neutrality 2050 (RCN 2050) was approved in 2019. In articulation with the goals of the RCN 2050, the National Energy and Climate Plan 2030 (NECP 2030) was developed, the main national energy and climate policy instrument for the next decade towards a carbon neutral future, while the European Climate Pact established the roadmap for reducing emissions by at least 55 % by 2030. In this changing context, it was necessary to adapt the legal framework of the National Electrical System (NES) to the needs and challenges caused by the strategic instruments that guide the energy policy of the European Union and Portugal.

Decree Law 15/2022 was published on January 14th, establishing the organization and operation of the National Electrical System, transposing the Directive (EU) 2019/944 on common rules for the internal electricity market and Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources. The changes introduced are structured along five fundamental priorities: the administrative activity of prior control of NES activities; network planning; the introduction of competition mechanisms for the exercise of NES activities; the active participation of consumers, in production and in the markets; and the legislative framing and densification of new realities such as re-equipment, hybrids or hybridization and storage.

The first priority includes the administrative activity of prior control of the NES activities, concentrates the central matters of organization and operation, until now scattered across several legal diplomas, and simplifies its operation, eliminating the distinction between production under the ordinary regime and production under the special regime, establishing as forms of prior control, prior notification, registration and license, that cover altogether production activities, self-consumption and storage, reducing administrative costs involved.

The second priority includes the planning of the networks and focuses on maximizing the full potential of the reception capacity of the Public Service Electricity Network (PSEN), in line with the public interest of protecting consumers, who bear its costs, and with the obligation to preserve the territory, as a finite resource, bearing in mind the goal of supply security and service quality.

The third priority introduces competitive mechanisms for the exercise of NES activities, representing a significant qualitative evolution, based on the option of making the award of licenses, within the scope of various NES activities applied on an exclusive basis, dependent on a prior competitive procedure, guaranteeing total transparency and equity in the functioning of the NES.

The fourth priority focuses on consumers and the role they can play within the NES, allowing them to move from being mere passive consumers to active agents who produce electricity for self-consumption or to sell surpluses, store and offer flexibility services and aggregate production.

The fifth and final priority is based on the creation or densification of the legal framework for innovative realities, such as re-equipment, hybrids or hybridization and storage, which are currently unregulated, and the establishment of an adequate legal framework for innovation and development pilot projects through the creation of three Technological Free Zones (TFZ).

This Decree Law has been rectified by Rectification Statement nº. 11-A/2022, of March 14th, which corrected minor inaccuracies.

Source: Republic Diary