Portugal Boosts Energy Efficiency Support for Homes with €60 Million Injection

Increased Funding for Energy Efficiency

The Portuguese government is set to reinforce financial support for the Energy Efficiency Program for Sustainable Buildings with an additional €60 million, complementing the existing €30 million allocation. This move was announced by the Minister of Environment and Energy, Maria da Graça Carvalho, during a parliamentary hearing regarding the proposed 2025 State Budget.

Key Features of the Program

The current program, which has a total budget of €90 million, funds up to 85% of costs for various energy efficiency measures, including window replacements, photovoltaic panel installations, and natural insulation solutions. However, the fund only began reimbursing beneficiaries in July, several months later than expected due to administrative delays.

Addressing Unmet Applications

The €60 million boost will address applications that were not approved previously and may also allow for a new round of funding under the same program. The Ministry of Environment aims to simplify the application process, ensuring it is less complex than prior rounds.

Collaboration with Universities

Due to resource constraints within the Environmental Fund's management team, which consists of only eight members, the government has engaged four universities (Nova, Coimbra, Minho, and Aveiro) to assist in evaluating applications.

Future Support for Vulnerable Families

Looking ahead, the government plans to enhance support for vulnerable families starting next year through two initiatives: providing vouchers to applicants and allocating funds to public and social sector entities investing in energy efficiency.

New Programs to Combat Energy Poverty

On Friday, the government announced the launch of the E_Lar program, aimed at promoting the purchase of more efficient appliances, alongside a program for Sustainable Urban Areas, each with a budget of around €50 million in 2025. The E_Lar program specifically focuses on improving home comfort for vulnerable households.

Calls for Program Reform

João Galamba, former Secretary of State for Energy and Environment, has advocated for reforming the Energy Efficiency Program, suggesting it lacked impact and reached few individuals. He proposes adopting a model similar to Italy's, which offered support exceeding 100% of energy efficiency expenses, emphasizing the need for effective measures that could significantly transform housing and stimulate economic activity across the country.