New rules for gas and hydrogen: Decree-Law 79/2025

What is Decree-Law 79/2025 and what is its objective?

Decree-Law 79/2025, published on May 21, 2025, amends the legal regime for the national gas system (“NGS”), updating Decree-Law 62/2020 and Decree-Law 70/2022. Entering into force on May 22, 2025, it aims to reform the regulatory framework for renewable hydrogen, and it is one of the measures for implementing the Recovery and Resilience Plan.

What are the main changes to the natural gas regime?

• Broader definition of “gas”: The concept of gas now includes not only natural gas, but also pure or mixed renewable gases with a low-carbon content, provided network interoperability is assured.
• Simplified procedures: All applications, communications and notifications concerning gas sector activities, including the production of renewable gases, are now sent through the Digital Services One-Stop Shop (Gov.pt).
• Preregistration and security deposit: Renewable gas production projects are now preregistered through the Digital Services One-Stop Shop, with a mandatory security deposit of 10% of the capacity reserved for the project, which is returned after operations begin.

What changes are made regarding hydrogen?

• Recognition of hydrogen as an energy vector: Decree-Law 79/2025 introduces specific definitions for “hypocarbonic hydrogen” and integrates renewable hydrogen with a low-carbon content into the NGS.
• Dedicated infrastructure: The decree-law provides for the creation of dedicated networks for hydrogen and other renewable gases, provisionally designating the entity responsible for planning, developing and managing this infrastructure, to be appointed by the government following a market consultation.
• Regulation and licensing: The Directorate-General for Energy and Geology is designated as the licensing entity for the renewable gas, natural gas and hydrogen market. The Energy Services Regulatory Authority (“ERSE”) is the regulatory body for these markets and represents Portugal at the Agency for the Cooperation of Energy Regulators.
• Transposition of European directives Decree-Law 79/2025 brings forward the transposition of Directive 2024/1788 on common rules for the internal markets for renewable gas, natural gas and hydrogen.

What changes are envisaged for strategic gas reserves?

• Deadlines for extraordinary measures: The extraordinary measures for reporting and supply security established in Decree-Law 70/2022 for long-term take-or-pay contracts are extended, with different deadlines for each article (e.g., up to December 31, 2027, for certain measures).
• Strategic reserve management: The National Entity for the Energy Sector (“ENSE”) retains responsibility for creating, managing and maintaining the strategic natural gas reserve, including the possibility of a partial sale of the reserve following governmental authorization.

What are the practical implications for operators and investors?

• Enhanced legal and procedural certainty and transparency: Procedures processed through the new Digital Services One-Stop Shop, a revamped preregistration regime, and clarification of the rules for accessing and connecting to the network, bring greater foreseeability for operators.
• Attention to regulation: ERSE will play a stronger role in regulation and supervision, and it is vital to stay informed of the future ordinances and orders that will operationalize the new regime.

What to expect in the coming months?

• Additional regulations: Regulations (ordinances and orders) will be published to provide details of the applicable procedures, fees and technical criteria, especially for hydrogen infrastructure.

• Market consultation: The government will promote a fast-track market consultation process to designate, by order, the entity responsible for planning, developing and managing the hydrogen network infrastructure. To this end, Edict 930-A/2025—promoting an invitation to submit expressions of interest for the appointment of that entity—was published on May 21.