MEASURE FACT SHEET

Support to projects with a minimum eligible investment of €25.000 (or €10.000, for projects involving rational energy use based on solar energy equipments) designed for production of electric and thermal power from renewable sources, rational use of energy and conversion of consumption to natural gas.

Goals

• Reducing national energy intensity;
• Promoting the development of energy production from national, clean and renewable resources;
• Fostering an increasingly rational energy use;
• Minimising environmental impacts resulting from energy production and consumption;
• Reducing the external dependence of the national power system.

Beneficiaries

Firms, and within ERU, municipalities, business and labour associations, schools, health and social action bodies, and civil protection entities.

Activity Sectors

Energy.

Type of Projects

a) Projects concerning electricity production from renewable energy sources

• Integration of new power production units within the power system, and namely the construction, upgrading or enlargement of power plants, based on conversion of wind, geothermal, mini-hydro, biomass or solar energy.

b) Projects concerning Energy Rational Use (ERU)

• Rehabilitation of non-residential buildings, in view of meeting energy efficiency standards, including power consumption reduction of the air-conditioning systems;
• Installation of systems or equipments with a high energy efficiency;
• Installation of heating and/or cooling systems using renewable energy sources, or hybrid systems with natural gas or electric power;
• Installation of energy management systems, or power bill reduction systems;
• Installation or upgrading of autonomous power production systems from renewable sources and combined production systems (co-generation), and of urban supply systems of heath and/or cool and power;
• Energy and environment integrated optimisation of facilities and equipments for the public municipal services or for concessionary enterprises.

c) Projects concerning the renewal of road transport vehicles

• Renewal of road transport vehicles through the purchase of natural, electricity powered or bio fuels.

d) Projects concerning consumption conversion to natural gas

• Development, upgrading, modification or adaptation of inland networks, burner systems and heath exchangers;
• Investments associated to the management of natural gas consumption conversion in existing buildings.

Eligible Expenses

• Purchase and setting up of materials and equipments essential for project implementation, including technical assistance during the setting up, testing and trial stages;
• Land property purchase or land servitudes constitution, for projects concerning power production from renewable energy sources;
• Purchase of specific software, directly applicable to the project;
• Construction or adaptation of facilities, including those required to meet environmental and safety standards;
• Project explanatory studies;
• Costs of equipment transport and insurance;
• Costs of certified public accountants intervention;
• Over costs of new electric and gas fuelled vehicles, compared to equivalent conventional vehicle costs;
• Costs related to material and equipment purchase, pipe installation and construction works, and conversion of burner system, provided these are done by duly qualified contractor, in projects related to rehabilitation of fixed interior installations in service buildings or industrial facilities, with an yearly energy consumption equal to or higher than 100 tep;
• The balance between the conversion costs and the updated savings on the yearly energy bill of the consumer undergoing conversion, for conversion projects related to fixed installations inside services buildings or industrial facilities with an annual energy consumption equal to or higher than 100 tep;
• Intangible expenses, namely of studies, projects, start-up tests and trials, as well as costs of project implementation during the setting up stage for projects concerning conversion to natural gas.

Non-Eligible Expenses

• Second-hand equipment purchase;
• Purchase of motor vehicles and other transport equipment, except when it concerns over costs related to the conversion of vehicles to natural gas or electric fuel;
• Purchase of building materials and equipment not directly related to ERU, to be used in the rehabilitation of non-residential buildings, or in the construction of new non-residential buildings, including their energy powered air-conditioned systems;
• Interests during construction;
• Floating capital;
• Enterprise internal costs.

Incentive

Non-refundable or refundable incentives; the latter may be replaced by the full payment of bank loan interests and charges. The following incentive rates apply:

a) Projects concerning electricity production from renewable energy sources

• A refundable incentive up to 40% of the total amount of eligible expenses.

b) Projects concerning Energy Rational Use (ERU)

(i) Projects for the installation of combined production systems and of supply systems of heath and/or cool and power:

• A refundable incentive up to 20% of the total amount of eligible expenses.

(ii) Projects related to the rehabilitation of non-residential buildings, intended to meet energy efficiency standards:

• A non-refundable incentive between 30% and 40% of the eligible expenses related to the improvement of the building energy efficiency projects.

(iii) Projects related to the installation of systems and equipment with a higher energy efficiency:

• A refundable and/or non-refundable incentive of 40% of the total amount of the eligible expenses - for the installation of: energy saving systems or equipment, or high-energy efficiency equipment; autonomous power production systems from renewable sources; energy management systems or power bill reduction systems. This rate may benefit from a 5% surcharge.
• A refundable and/or non-refundable incentive up to 40% of the total amount of the eligible expenses - for investments in the installation of heating and/or cooling systems using renewable energy sources, or hybrid systems using power/natural gas.
• A non-refundable incentive of 50% of the eligible expenses for projects of energy and environment integrated optimisation of facilities and equipments for the public municipal services.

c) Projects concerning the renewal of road transport vehicles

• A non-refundable incentive of 50% of the eligible expenses.

d) Projects concerning consumption conversion to natural gas

• A non-refundable incentive of 50% of eligible expenses. This rate may benefit from a 5% surcharge

Whenever the eligible expenses are the same, granted incentives are not cumulative with any other incentive of the same nature.

Application Submission

Applications should be submitted at one of PRIME Investor Offices or at the DRE (Regional Directorate for Economy) of the area concerned, depending on the national or de-concentrated nature of the project.

Applications should be submitted through the appropriate form, available in this site or at one of the abovementioned entities (Investor Offices or DRE), duly filled in and in electronic format.

Applications of national projects within the framework of projects for conversion of consumption to natural gas must be submitted at IAPMEI.

Applications to MAPE may be submitted throughout the year.

Applications to this Measure are now suspended (Ministerial Order no. 9681/2006, of 3 May and Ministerial Order no. 5058, of 6 March).

Bodies in Charge

Coordinating Bodies

IAPMEI - Institute for Support to Small and Medium-Size Enterprises and Investment (national projects)

DRE - Regional Directorate for Economy of the area concerned (de-concentrated projects)

Geographical Area

Mainland Portugal and the Autonomous Regions.

This information does not dispense with consulting the legislation.

Updated on November 2006.