Portuguese Incentive covered 55% of EVs: How long will the wait be for new funds?

In 2023, the Portuguese Environmental Fund allocated ten million euros for the acquisition of electric vehicles (EVs), while also announcing support for the scrapping of cars manufactured before 2007.

After stating at the beginning of 2024 that this expenditure would not be included in the financial plan, it was ultimately launched in October, and applications closed on 31 December of the same year.

“This left just three months of the year to apply the incentives and, as we know, the delivery time for many EVs is not short,” Manuel Reis, Vice President of the Board of the Electric Vehicle Users Association (UVE), tells Mobility Portal Europe.

According to the Vice President, the new conditions imposed reduced the number of beneficiaries, excluding hundreds of potential buyers.

Furthermore, he mentions that a requirement was introduced to provide proof of delivery of an old vehicle for scrapping, further complicating access to the 4,000 euros grant.

“As a result, fewer than 600 owners were able to access the incentive, barely 55% of the initially planned total,” he emphasises.

He adds: “We strongly disagree with this policy; it was a disaster, and we hope it will be rectified this year.”

The issue extends beyond low uptake; there is also uncertainty regarding the continuity of these programmes.

According to official information, unused funds from 2024—approximately one-third of the initial budget—will be transferred to this year’s incentive scheme.

Instead of the ten million euros originally allocated for 2025, the Environmental Fund will have an amount that could be 30% to 40% higher.

“The government already made some announcements, albeit unofficial, indicating that it plans to increase the number of EVs eligible for the incentive,” Reis explains.

Industry sources informs Mobility Portal Europe that in April, the administration will launch a funding programme aimed at supporting the purchase of fully electric vehicles.

In this instance, beneficiaries would receive a 4,000 euros subsidy, provided they scrap a fossil fuel-powered car that is more than ten years old.

Meanwhile, local media report that further announcements on the matter are expected next week.

At this juncture, it is important to highlight that the President recently dissolved the government, with elections scheduled for 18 May.

As a result, the administration is currently unable to make strategic decisions.

This not only affects subsidies for EV purchases but also the regulation of electric mobility, which is under review.

This regulatory reform was proposed in September 2024.

“We do not know whether this restructuring will take place before the elections or afterwards, under a new government,” Reis notes.

He continues: “We are uncertain about how the process will unfold, as if it occurs after the elections, it will depend on the party that emerges victorious.”

Additionally, he states that a governmental proposal is currently under public consultation until the end of this month.

What is it about?

The Government approved a new Legal Framework for Electric Mobility.

This is a diploma that replaces the previous Royal Decree-Law 39/2010, of 26 April, and provides the sector with “a new impetus to respond to the new challenges of the market and its consumers.”

It aims to promote a more accessible, universally available, and flexible electric charging model, for both EV users and the accepted business models.

This ends the obligation to connect to a single platform for the entire network system (which contains all financial and energy flows), previously managed by MOBI.E.

CPOs will be required to provide electronic payment methods, such as QR codes or bank cards (for more than 50 kWh), as well as clearly indicating the applicable unit price before charging.

Mandatory competitive mechanisms (tenders) will also be introduced for the allocation of new “refuelling” stations in concession or sub-concession areas.

This model seeks to align with the practices of other European Union countries and comply with the European AFIR Regulation, unlocking investments and fostering competition through market simplification.

This new framework also allows for self-consumption and encourages the formation of energy communities, as well as intelligent and bidirectional charging.

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