REN Redes Energeticas Nacionais SGPS S A : EU Approves List of Common Interest Energy Transportation Projects Including Three National Proposals

The electricity and hydrogen interconnections between Portugal and Spain and the creation of domestic hydrogen infrastructure are part of the first list approved by the European Union (EU) of Projects of Common Interest and Projects of Mutual Interest. The EU Delegated Regulation, approved on April 8, lists dozens of projects evaluated in light of various criteria, including sustainability, which are necessary for the realization of the priority geographical corridors of European strategic energy infrastructure.

Energy interconnection projects with Spain are fundamental to the energy transition Portugal aims to achieve. On the other hand, the industrial development of green hydrogen represents an important opportunity for the creation of qualified and sustainable employment, which could have significant added value for the Portuguese economy.

Regulation (EU) 2022/869 establishes a framework for the identification, planning, and execution of Projects of Common Interest necessary for the realization of the EU's priority geographical corridors of strategic energy infrastructure, as well as a framework for the identification, planning, and execution of Projects of Mutual Interest developed by the Union in conjunction with third countries, in the fields of electricity, hydrogen, and carbon dioxide transport networks. All eligible projects proposed for inclusion in the Union list have been evaluated in terms of sustainability criteria, mandatory for all project categories, among other more technical criteria.

The Portugal-Spain electricity interconnection, between Ponte de Lima and Fontefría, respectively, including the new Ponte de Lima substation, is on the approved list. This project, to be carried out by REN, will increase the interconnection capacity between Portugal and Spain, contributing to market integration and network security, meeting the objectives established within the framework of the Iberian Electricity Market and cross-border capacity at the European level.

As part of the H2med, a green hydrogen corridor between Portugal and central-northern Europe, notably Germany, the other two Projects of Common Interest with a national dimension emerge, to be developed by REN: the creation of domestic hydrogen infrastructure in Portugal and the hydrogen interconnection between Portugal and Spain, more specifically between Celorico da Beira and Zamora (Spain), commonly referred to as "CelZa." These two projects, presented in 2023, in the proposal for the Gas Grid Development and Investment Plan for the 2024-33 period, contribute to the creation of a more independent integrated European energy market and a competitive route for hydrogen, incorporating a new relevant energy vector for decarbonization and the energy transition in Europe.