Portugal's First Competitive Auction for Biomethane and Hydrogen Procurement
Key Ideas
  • Portugal launches its first competitive electronic auction for the procurement of biomethane and hydrogen from renewable sources.
  • The auction aims to inject renewable or low-carbon gases into the public gas grid, with Transgás, S.A. overseeing the purchasing process.
  • Up to 150 GWh/year of biomethane and 127 GWh/year of hydrogen will be auctioned, promoting the use of sustainable energy sources.
  • The agreements resulting from the auction will be valid for 10 years, contributing to long-term sustainability and environmental goals.
Portugal has initiated a groundbreaking competitive electronic auction for the centralized procurement of biomethane and hydrogen, both produced using renewable energy sources. This innovative auction is the first of its kind in the country and is aimed at injecting renewable or low-carbon gases into the public gas grid. Acting as the wholesale supplier of last resort, Transgás, S.A. will manage the procurement process, while the Directorate General of Energy and Geology (DGEG) will oversee the procedure. The auction will involve selling up to 150 GWh/year of biomethane and 127 GWh/year of hydrogen, with maximum prices set at €62/MWh and €127/MWh respectively. Successful bidders will secure contracts with Transgás for 10 years from the first injection into the grid, ensuring a sustainable supply of these gases. Applications for participation must be submitted by August 12 via the designated procedure platform. This initiative highlights Portugal's commitment to promoting renewable energy sources and advancing sustainability goals in the energy sector.
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