The Government will create a mechanism that will allow channeling part of the revenues from future hydroelectric concessions in Serra da Estrela to fund ecological restoration projects, recovery of water resources, and environmental enhancement of Serra da Estrela Natural Park, announced the Office of the Minister of Environment and Energy in a press release.
According to the same source, the decision is contained in an order issued by the Minister of Environment and Energy, Maria da Graça Carvalho, which directs the Portuguese Environment Agency (APA) to prepare a model for allocating part of the rents and financial contributions from future hydroelectric concessions to the environmental recovery of that territory.
The objective is to ensure that the exploitation of water resources for renewable energy production also contributes to nature conservation, landscape restoration, the reduction of fire risk, and adaptation to climate change.
“We want the wealth generated by Serra da Estrela’s natural resources to directly contribute to the recovery and enhancement of this territory. The production of renewable energy should also benefit the communities and ecosystems hosting these infrastructures. We are preparing a model that will enable part of the revenues from hydroelectric concessions to be transformed into investment in nature conservation, protection of water resources, and the resilience of Serra da Estrela,” said Maria da Graça Carvalho, the Minister of Environment and Energy.
New hydroelectric concessions are expected to be tendered in 2027
The Serra da Estrela Natural Park, with about 89,000 hectares, includes unique mountain ecosystems and the headwaters of important Portuguese rivers, such as Mondego, Zêzere and Alva.
According to a survey by the APA, there are 22 hydraulic developments in the park area, of which 14 have concessions that expire on October 9, 2028.
The Government intends to take advantage of the end of these concessions to prepare a new bidding procedure, preferably to be carried out in aggregate form, with launch planned for 2027.
The new model should establish the percentage of the rents or financial contributions to earmark for financing environmental projects, ensuring that part of the revenues generated from the exploitation of natural resources is redirected toward the recovery and enhancement of the territory itself.
APA has 90 days to present a financing model
The decree requires that APA present, within 90 days after publication, a proposal of environmental and financial clauses to be integrated into future concession contracts, including the definition of the percentage of revenues to channel toward ecological restoration.
The funds collected should be transferred to the Environmental Fund to finance projects for rehabilitation and requalification of water resources, recovery of ecosystems, conservation of nature, and adaptation and mitigation of climate change.
The proposal will be developed in coordination with the Association of Municipalities of Serra da Estrela Natural Park (AMPNSE), the Institute for Nature Conservation and Forests (ICNF), the Co-Management Commission of the Serra da Estrela Natural Park, the Intermunicipal Community of Beiras and Serra da Estrela, and the Climate Agency.
With this initiative, the Government aims to establish an innovative model for valuing natural resources, reconciling renewable energy production with the financing of nature conservation and the sustainable development of Serra da Estrela.
