On 18 November 2025, the Chamber of Deputies approved the Senate’s version of the bill titled “Law for the Modernization of the Regime that Regulates and Promotes Electricity Generation from Non-Conventional Renewable Energy Sources” (“Bill”).

With this approval, the Bill is now fully passed and moves to the Executive Branch for promulgation.

Once promulgated, the Bill will repeal Law 6977/2023, currently in force, introducing significant changes to the existing legal framework. Among the most relevant modifications, we highlight:

• New ERNC methodology: the ERNC Reference Tariff will be calculated by ANDE based on background information, relevant data and available information, replacing the current average generation cost criterion.
• Large consumer: this category is introduced (demand ≥ 30 MW), enabling for the first time direct energy sales between private parties.
• Removal of distinctions: the differentiation between interruptible and non-interruptible generation sources is eliminated.
• Longer terms: licenses and contracts will extend from 15 to 30 years, improving predictability and bankability.
• New trust fund: an administration and payment trust will be created to manage the resources allocated to Generators.
• Tax benefits: licensees will be able to access the incentives under Law 523/1995 on Free Trade Zones, a benefit not available under Law 6977.