On March 17, 2023, the European Commission introduced an added support plan to help economies affected by the war between Russia and Ukraine. One part of the plan is about encouraging investments in important industries that will help Europe move towards cleaner energy. These industries include the production of batteries, solar panels, wind turbines, heat pumps, and technology to capture carbon emissions.

In Portugal, the program "Investment in Strategic Sectors" created by Ministerial Order 306-A/2024/1 aims to support large-scale projects for a carbon-neutral economy in 2025, namely renewable energy production and storage. The program has a budget of one thousand million euros. Here are the key features of this incentive works:

• It’s available to companies of any size in Portugal, including Azores and Madeira, but only for the production of the specific items mentioned above.
• The amount of support companies can get depends on where they are located in Portugal and the specific rules of the program.
• In most cases, the support will cover up to 15% of eligible costs, but there’s a limit of 150 million euros per company.
• If the company is in the Lisbon Metropolitan Area or Algarve, the support can be higher — up to 20% of the eligible costs, with a 200 million euros limit.
• If the company is in the North, Center, Alentejo, Azores, or Madeira, the support can cover up to 35% of the costs, with a limit of 350 million euros.
• Eligible costs include things as purchasing machinery, equipment, and patents, but do not cover land, VAT, or financial expenses.

An online form is available to submit all applications to AICEP, the foreign investment Portuguese government agency. AICEP will review the application and recommend it to the program’s decision-making body, COMPETE 30, for a final decision on support.