Law No. 29/2026 of 23 June represents a further step in the evolution of the legal framework applicable to decentralised renewable energy production in Portugal. The legislation introduces mechanisms aimed at promoting self-consumption, reducing bureaucratic barriers and creating conditions for a more efficient use of the energy potential associated with real estate assets.
Among the main developments are the creation of the Renewable Energy Utilisation Agreement (Contrato de Aproveitamento Energético Renovável — CAER), the introduction of tacit approval mechanisms in certain licensing procedures, enhanced protection for self-consumers in the sale of surplus energy, and the simplification of the installation of production units for self-consumption in buildings subject to the horizontal property regime.
Energy utilisation of real estate as a new subject matter of contract
The most innovative measure introduced by the legislation is the creation of a specific legal framework for the Renewable Energy Utilisation Agreement (Contrato de Aproveitamento Energético Renovável — CAER).
Until now, the implementation of self-consumption solutions in properties owned by third parties frequently required recourse to a range of contractual arrangements that were not always suited to the economic reality of these transactions. Law No. 29/2026 seeks to address this gap by creating a contractual instrument specifically designed for the granting of rights to utilise the energy potential of certain properties.
The framework allows owners to make available roofs, roof structures, terraces, undeveloped urban land or areas with no recognised suitability for agricultural, livestock or forestry activities, for the purpose of installing and operating production units for self-consumption powered by renewable energy sources.
In practice, the model facilitates the involvement of investors or specialised operators who bear the costs of installing and operating the equipment, allowing owners to benefit from an increase in the value or productive use of their assets without having to make the investment directly.
This solution may prove particularly relevant for condominiums, companies holding real estate assets and owners of buildings with potential for the installation of photovoltaic systems who do not have the financial resources or sufficient interest to develop such projects independently.
Enhanced contractual transparency
Mindful of the technical and economic complexity associated with these projects, the legislature has sought to ensure high standards of contractual transparency.
CAERs must be entered into in writing and contain a minimum set of essential terms, including the duration of the agreement, the rules governing renewal and termination, the allocation of installation and maintenance costs, the criteria for distributing revenues resulting from the exploitation of the energy produced, and the ownership regime applicable to the equipment following termination of the agreement.
In addition, project promoters are subject to particularly stringent information obligations. Before the agreement is entered into, the owner must receive clear and detailed information concerning the technical characteristics of the installation, production estimates, the applicable economic terms, maintenance arrangements and dispute resolution mechanisms.
This emphasis on protecting the contractually more vulnerable party brings the new framework into line with recent trends in energy law and consumer law, which are characterised by increasingly stringent requirements regarding transparency and contractual balance.
Faster and more predictable licensing
Another particularly relevant aspect of the reform concerns changes to the licensing procedures applicable to production units for self-consumption.
Delays in the granting of licences have frequently been identified as one of the factors hindering investment in small- and medium-scale renewable energy production. Under the new framework, the legislature has opted to introduce a mechanism based on tacit approval, seeking to enhance administrative predictability and address situations of administrative inaction.
Where renewable energy production units for self-consumption are subject to licensing, the competent administrative authority will have 90 days to issue the production licence and the operating licence. If that period expires without an express decision, the application is deemed to have been approved.
The measure represents a significant reversal of the traditional logic of administrative procedure, giving administrative silence an effect favourable to the applicant and reducing the uncertainty associated with investment projects.
Sale of surplus energy and the role of the last-resort aggregator
Law No. 29/2026 also introduces relevant changes regarding the treatment of surplus energy produced by self-consumers.
Many self-consumption systems generate quantities of energy exceeding the immediate needs of their respective owners. That energy may be stored or injected into the electricity grid, with the possibility of selling surplus energy being of particular importance.
In this context, the legislature has strengthened the role of the last-resort aggregator, ensuring that a solution is available for producers who have not entered into an agreement with a registered aggregator. In such cases, the purchase of the electricity produced is to be ensured by the last-resort aggregator through simplified procedures.
At the same time, the remuneration payable for such energy is to be established by governmental order (portaria), thereby providing a clearer framework for self-consumers seeking to derive economic value from the electricity they produce.
ERSE’s existing platform, which provides a free tool for comparing suppliers’ offers covering the entire liberalised market in mainland Portugal, will also be extended to include comparisons of aggregators’ offers and will be made available to all self-consumers with an expected annual injection of surplus energy into the public service electricity grid of less than 725 MWh.
Self-consumption in a condominium context
The law also introduces an amendment to Article 1425 of the Civil Code, aimed at facilitating the adoption of self-consumption solutions in buildings subject to the horizontal property regime.
Until now, the installation of equipment in common parts could encounter difficulties as a result of the voting majorities required for the approval of condominium resolutions. Under the new wording, the installation and operation of renewable energy production units for self-consumption will require only a simple majority.
The amendment seeks to overcome obstacles frequently encountered in practice and may contribute to a wider uptake of solar projects in urban settings, particularly in multi-family residential buildings.
Final considerations
Law No. 29/2026 represents a further step towards consolidating self-consumption as a central instrument of Portugal’s energy transition. The introduction of the Renewable Energy Utilisation Agreement, the simplification of licensing procedures, the strengthening of mechanisms enabling surplus energy to be monetised and the relaxation of the rules applicable to the horizontal property regime demonstrate a clear commitment by the legislature to removing legal and administrative barriers to decentralised energy production.
For property owners, companies, real estate developers, condominiums and investors, these changes create new opportunities for enhancing the value and productive use of real estate assets and for developing renewable energy projects. They also raise significant challenges in terms of contractual structuring, risk allocation, regulatory framework and the legal compliance of projects.
In this context, specialised legal analysis is particularly important, both at the stage of negotiating and formalising agreements and when assessing the legal requirements applicable to each transaction. Proper project structuring may prove decisive in ensuring economic viability, minimising future risks and enabling full advantage to be taken of the opportunities created by the new framework.
We will closely monitor the supplementary regulations and the practical implementation of these measures, providing legal advice to property owners, companies and investors seeking to develop or participate in self-consumption and renewable energy utilisation projects. The new legal framework creates significant opportunities for the sector and will increasingly require legal solutions capable of keeping pace with the growing sophistication of the energy market.
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The content of this information does not constitute any specific legal advice; the latter can only be given when faced with a specific case. Please contact us for any further clarification or information deemed necessary in what concerns the application of the law.