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Decarbonisation and Energy Efficiency for Businesses

Decarbonisation and Energy Efficiency for Businesses

Opened Until 27-02-2026 PT2030

The Incentive System for Climate and Energy Transition (SITCE) – Decarbonisation and Energy Efficiency aims to support the reduction of energy consumption and greenhouse gas (GHG) emissions, namely through the replacement, adaptation, or introduction of low-carbon equipment, processes, and technologies, and, complementarily, the incorporation of renewable energy sources. This programme is an integral part of Portugal's commitment to the goals of the National Energy and Climate Plan 2030 (PNEC 2030), which aims to achieve carbon neutrality by 2050. 

  • Intervention Typology
    SITCE - Incentive System for Climate and Energy Transition
  • Beneficiaries
    Micro, Small and Medium-sized Enterprises (SMEs), Large Enterprises (Non-SMEs).
  • Regional Scope
    North, Centre, Alentejo, Algarve and Lisbon
  • Support Rate
    Up to 85% Non-Repayable Grant

Actions covered by notice MPR-2026-01

The framework of eligible actions is divided into two distinct modalities, depending on the nature, dimension, and structuring impact of the investment on the national economy:

  • General Regime - operations falling under the Intervention Typology «Decarbonisation of companies», specifically in the operation typology «Energy Efficiency and Decarbonisation» (in accordance with point a) of Article 81 of the REITD) .
  • Contractual Investment Regime (RCI) - operations that prove to be of special interest to the national economy due to their structuring or strategic effect in accelerating the climate transition and promoting the decarbonisation of the national economy and/or sectors of activity, regions, and areas considered strategic (in accordance with point c) of no. 3 and no. 4 of Article 118 of the REITD) .

Operation Typologies 

Individual energy efficiency and corporate decarbonisation operations aiming to reduce energy consumption and greenhouse gas (GHG) emissions are eligible.

The notice covers two main types of intervention:

  • Interventions not in buildings (focused, for example, on production processes and equipment);
  • Interventions in buildings.

Investment Typologies

Eligible costs include the total investment costs or the extra costs necessary to achieve a higher level of energy efficiency or environmental protection, divided into the following categories:

In the field of Energy Efficiency (Interventions not in buildings)

  • Optimisation of motors, turbines, pumping and ventilation systems (e.g. variable speed drives);
  • Optimisation of compressed air systems;
  • Replacement and/or alteration of furnaces, boilers, and injectors;
  • Heat or cold recovery;
  • Use of waste heat from nearby industries (industrial symbiosis);
  • Optimisation of industrial cold production (e.g. replacement of chiller or heat pump);
  • Technological modernisation, integration, and optimisation of processes;
  • Energy management, monitoring, and control systems.

In the field of Energy Efficiency in Buildings

  • Installation of equipment for renewable energy production (electricity, heating, or cooling), such as photovoltaic panels and heat pumps;
  • Energy storage equipment (provided it absorbs at least 75% of the connected renewable source energy);
  • Connection to efficient district heating and/or cooling systems;
  • Recharging infrastructure for building users;
  • Digitalisation of the building to increase its «intelligence» and broadband infrastructure;
  • Green roofs and equipment for rainwater harvesting.

In the field of Environmental Protection and Decarbonisation

  • Replacement of fossil fuel equipment with electric equipment;
  • Improvement of service quality in access to electricity;
  • Use of alternative fuels derived from non-fossil waste;
  • Incorporation of alternative raw materials (by-products, recycled materials, biomaterials);
  • New low-carbon products;
  • Industrial symbioses for decarbonisation;
  • Replacement of fluorinated gases with others of low global warming potential;
  • Digitalisation to ensure traceability and circular economy;
  • Introduction of renewable raw materials with a low carbon footprint;
  • Smart digital metering and monitoring solutions for resource optimisation.

Renewable Energies (Complementary)

Eligible costs only insofar as they contribute to environmental protection/decarbonisation objectives:

  • Renewable electricity production systems for self-consumption;
  • Equipment for the production of heat and/or cold from renewable sources;
  • Adaptation of equipment for the use of renewable fuels.

Studies and Technical Services

  • Investment expenses related to studies, diagnoses, energy audits, and certifications;
  • Self-assessment of alignment with the «Do No Significant Harm» (DNSH) principle.

SITCE General Regime - Decarbonisation and Energy Efficiency

Application Date

  • Start: 26/01/2026.
  • End (Phase 1): 27/02/2026 (until 18:00).

Note on the Aid Request Registration (RPA): Beneficiaries who registered the aid request through Notice no. 03/RPA/2025 (of 10 February 2025) may submit the application using the operation data registered therein. The registration may only be used in a single application and the operation must correspond to what was presented in the request, barring justified changes.

Notice Beneficiaries - Which companies can apply to SITCE?

  • Company Typology: Companies of any size (SMEs and Large Enterprises) .
  • Geographical Area: Investments located in the NUTS II regions of the Mainland: North, Centre, Alentejo, and Algarve
    Note: The Lisbon region is not eligible under the General Regime

Funding and Support Rates

  • Budget Allocation: € 165,000,000 (ERDF).
  • Support Rate: Maximum co-financing rate of 85%.
  • Minimum Investment: € 400,000
  • Maximum Investment: € 25,000,000 (Projects exceeding this maximum amount fall under the Contractual Investment Regime)

Eligibility Criteria

  • Minimum Investment: The operation must present a minimum total eligible expenditure of 400,000 euros .
  • Eligible Sectors: Sectors producing tradable and internationalisable goods and services .
  • Energy Audit: Obligation to carry out an energy audit before (ex-ante) and after (ex-post) the operation, to assess emission reductions or energy savings.
    Buildings: Carried out by a Qualified Expert (PQ) and with the issuance of an Energy Certificate.
    Industry/Processes: Carried out by a recognised technician (SGCIE).
  • DNSH Principle: The investment must comply with the principle of «Do No Significant Harm» to the environment.

Metrics and Monitoring Indicators

Approval and maintenance of the incentive depend on compliance with specific indicators, divided into Output (physical) and Result (impact).

Output Indicators (Operation Completion)

Measure the immediate physical realisation of the investment:

  • Electrification of consumption (RPO148): Nominal power (in kW) of supported electrical equipment that replaced equipment using fossil fuels.
  • Intervened buildings (RPO149): Useful floor area (in m²) of buildings achieving better energy performance (increase of at least one energy class).
Result Indicators (Post-Project)

Measure the effective environmental and energy impact, determined through ex-post audit (year following completion):

  • GHG Emissions (RCR29): Reduction of estimated greenhouse gas emissions (Tonnes CO2 eq/year).
  • Primary Energy Consumption (RCR26): Reduction of annual primary energy consumption (MWh/year).
  • Final Energy Consumption (RPR163): Reduction of final energy consumption of the company/installation (MWh/year).
  • UPAC Power (RPR164): Increase in installed power in Production Units for Self-Consumption from renewable sources (kW).

SITCE Contractual Investment Regime - Decarbonisation and Energy Efficiency

Application Date

  • Start: 26/01/2026.
  • End (Phase 2): 30/12/2026 (until 18:00), exclusive deadline for RCI applications.

Note on the Aid Request Registration (RPA): Beneficiaries who registered the aid request through Notice no. 03/RPA/2025 (of 10 February 2025) may submit the application using the operation data registered therein. The registration may only be used in a single application and the operation must correspond to what was presented in the request, barring justified changes.

Notice Beneficiaries (RCI)

  • Company Typology: Exclusively Large Enterprises.
  • Geographical Area: Investments located in the NUTS II Regions of the Mainland: North, Centre, Alentejo, Algarve, and Lisbon.
    Note: Unlike the General Regime, the Lisbon region is eligible in this modality.

Funding and Support Rates

  • Allocation: € 150,000,000 / Year
  • Support Rate: The funding rate is established in the specific negotiation process with AICEP.
    Note: The rate respects the limits of Article 87 of the REITD and the maximum regional aid intensities.
  • Minimum Investment: € 25,000,000 (General Rule).
    Exception: It may be € 15,000,000 if the operation is of Strategic Interest and obtains a favourable opinion from DGEG.
  • Support Limit: The support cannot exceed the threshold of 30 million euros per company and per project.

 

FAQ sobre Decarbonisation and Energy Efficiency for Businesses

Projects must meet at least one of the following mandatory targets:

  • Minimum 30% reduction in greenhouse gas (GHG) emissions;
  • Improvement in energy performance equivalent to a medium-level renovation.

Are there additional required indicators?

Yes, projects must provide estimates for the following:

  • Annual primary energy savings (kWh/year or toe/year);
  • Reduction in energy intensity (energy consumed per unit of output);
  • Reduction in environmental impact (if applicable);

Economic indicators, such as cost per ton of CO₂ avoided.

A medium-level renovation refers to interventions that enable a 30% to 60% improvement in energy efficiency in the targeted building or facility. The classification follows the criteria set out in Recommendation (EU) 2019/786 and requires:

  • Initial energy assessment;
  • Implementation of effective measures (e.g., insulation, efficient HVAC systems) – eligible under this incentive scheme;
  • Certification of the achieved improvement upon completion.

The reduction in emissions is measured in tons of CO₂ equivalent per year (tCO₂e/year). To this end, the company must provide:

  • An energy audit or technical study showing current emission levels;
  • The projected reduction estimate following project implementation;
  • Post-implementation energy audits confirming that the ≥30% reduction target was effectively achieved.

No, investments in renewable energy sources must be complementary to other project investments. The focus of this funding typology is to support the reduction of energy consumption and greenhouse gas (GHG) emissions through the replacement, adaptation, or introduction of low-carbon equipment, processes, and technologies.

However, while investments in renewable energy sources (such as photovoltaic or solar thermal systems) are not mandatory, they do contribute to the decarbonization goal and can increase the project’s evaluation score. In many cases, they help complement emission reductions or reduce dependence on fossil fuel sources.

Equipment powered by fossil fuels, including natural gas, is not eligible.

The regulations also exclude investments that result only in shifts within fossil fuels (e.g., from coal to natural gas), or that do not represent an effective and additional reduction in emissions. The focus is on:

  • Low-carbon technologies;
  • Electrification;
  • Renewable energy sources;
  • Proven energy efficiency improvements.

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