The Climate and Energy Transition Incentive System (SITCE) – Decarbonisation and Energy Efficiency aims to support the reduction of energy consumption and greenhouse gas (GHG) emissions, namely through the replacement, adaptation or introduction of low-carbon equipment, processes and technologies, and, in a complementary way, the integration of renewable energy sources.
Its purpose is to stimulate energy efficiency and the decarbonisation of economic activities and promote a paradigm shift in the use of resources, with a special focus on the most energy-intensive and polluting sectors, in order to accelerate the transition to a carbon-neutral economy.
Purposes and Objectives
- Reduction of energy consumption intensity, increased use of renewable energy sources, and the growing introduction of carbon-neutral or carbon-free technologies and production processes;
- Promotion of energy efficiency and renewable energy;
- Rehabilitation of the business building stock to make it more efficient, achieving gains in energy cost reduction, comfort levels, and indoor air quality;
- Focus on improving energy efficiency, electrification of thermal processes, particularly processes requiring temperatures below 200ºC, and circular economy;
- Adoption of more sustainable business strategies aimed at the society of the future, based on low-carbon processes and technologies;
- Promotion of company competitiveness by reducing energy consumption costs and increasing the share of endogenous and renewable energy sources in energy use.
Under the General Regime, companies of any size are eligible to apply, while under the Contractual Investment Regime only Large Companies may submit applications.
Contractual Investment Regime
Operations falling under this regime must be:
- Of special interest, with total eligible costs equal to or greater than €25 million, and considered of special relevance to the national economy due to their structuring effect in accelerating climate transition and promoting the decarbonisation of the national economy and/or strategic sectors, regions, and areas of activity;
- Of strategic interest to the national or regional economy, exceptionally recognised through a joint decision by the government members responsible for planning and the economy and/or territorial cohesion, depending on the scope of the operation.
Eligible Actions
Individual energy efficiency and decarbonisation operations are eligible for support, including both non-building and building interventions promoted by companies that aim to reduce energy consumption and GHG emissions.
Eligible Costs
1. For non-building interventions:
- Optimisation of motors, turbines, pumping systems and ventilation systems;
- Optimisation of compressed air systems;
- Replacement and/or modification of furnaces, boilers and injectors;
- Heat or cold recovery;
- Use of residual heat from nearby industries (industrial symbiosis);
- Optimisation of industrial cooling production;
- Technological modernisation, process integration and optimisation;
- Energy management, monitoring and control systems.
2. For building interventions:
- Installation of integrated equipment generating electricity, heating or cooling from renewable energy sources, including photovoltaic panels and heat pumps;
- Installation of energy storage equipment, provided that at least 75% of the stored energy comes annually from directly connected renewable generation;
- Connection to efficient district heating and/or cooling systems and related equipment;
- Construction and installation of charging infrastructure for building users, such as conduits, installed in or near the building;
- Installation of building digitalisation equipment, especially to increase “smart” capabilities, including broadband infrastructure;
- Investments in green roofs and rainwater retention and reuse systems.
3. Environmental protection and decarbonisation:
- Replacement of fossil fuel equipment with electric equipment;
- Improvement of quality of service in electricity access;
- Use of alternative fuels derived from non-fossil waste;
- Use of alternative raw materials in production processes to reduce emissions (by-products, recycled materials, biomaterials);
- New low-carbon products;
- Industrial symbiosis for decarbonisation at technological and system level;
- Replacement of fluorinated gases with low global warming potential alternatives;
- Process digitalisation to ensure product traceability and promote circular economy;
- Eco-innovation promoting circular value chains and new business models;
- Introduction of renewable and low carbon footprint raw materials;
- Digital solutions for measurement, monitoring, data processing and process optimisation to reduce consumption and emissions.
4. Other:
- Installation of renewable electricity production systems for self-consumption;
- Installation of renewable heat and/or cooling production equipment (including heat pumps);
- Adaptation of equipment for renewable fuels;
- Studies, diagnostics and audits, namely energy audits and certifications.
Geographical Scope
- General Regime: North, Centre, Alentejo and Algarve regions.
- Contractual Investment Regime: North, Centre, Lisbon, Alentejo and Algarve (mainland NUTS II regions).
Support
Support is granted as a non-repayable grant, with the following rates:
- General Regime: maximum rate of 85%;
- Contractual Investment Regime: co-financing rate defined through specific negotiation.
Application Period
- Phase 1: 27 February 2026 — applications under the General Regime.
- Phase 2: 30 December 2026 — exclusively for the Contractual Investment Regime.
How We Can Help
At Dower, we have a team of consultants focused on helping your company grow using the best financing options.
With our know-how, we support the preparation and submission of applications, as well as full project follow-up throughout its entire scope.
Discover how we can support your company in this complex and demanding process.
