European Commission sues Portugal over renewable energy

Storm Martinho gave the country a new historical record

European Commission sues Portugal over renewable energy

At issue is Portugal’s failure to implement a European directive that reinforces the promotion of renewable energy.

The European Commission decided to move forward with legal action against Portugal at the Court of Justice of the European Union for failure to transpose energy-related EU directives, while also issuing a reasoned opinion on additional failures in the electricity market.

At stake is, from the outset, the non-incorporation into national legislation of Directive (EU) 2023/2413, which reinforces the rules for promotion of renewable energy. This legislation aims to accelerate the adoption of clean sources throughout the European economy, contributing to the reduction of greenhouse gas emissions, strengthening energy independence and reducing energy prices.

The directive came into force in November 2023 and should have been transposed by May 21, 2025, with some provisions requiring implementation even earlier. However, according to Brussels, Portugal did not notify any measures in this regard more than a year after the deadline, which led to the decision to take the case to court and ask for financial sanctions to be applied. In addition to Portugal, Malta and Greece also face the same process.

At the same time, the European executive issued a reasoned opinion regarding the non-transposition of Directive (EU) 2024/1711, which aims to reform the electricity market. This legislation aims to make prices more stable and less dependent on fossil fuels, allowing consumers and companies to benefit more directly from the lower costs of renewable energy, explains Jornal de Negócios.

The Commission emphasizes that these rules also strengthen consumer protection, notably by ensuring greater freedom of choice of suppliers and better contractual conditions. Member States had until January 17, 2025 to comply with most provisions.

Portugal now has two months to respond to the opinion reasoned and adopt the necessary measures. Otherwise, it could face further proceedings at the Court of Justice of the European Union, also with the risk of sanctions.

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