Maria da Graça Carvalho, the Minister of Environment and Energy, argued Wednesday that the State's participation in REN (Redes Energéticas Nacionais) can help accelerate investments in the electricity grid and contribute to reducing the price of electricity, CNN Portugal reports.

"To lower the price of electricity, we have to increase, for example, the percentage of solar and renewable energy, which are much lower cost than other technologies," the minister stated in parliament.

Accelerating investment

During a hearing before the Environment and Energy Committee, Carvalho linked the State's acquisition of 13.7 percent of REN to the need to accelerate investments in the network and connection processes.

According to her, several investments planned for Portugal are currently dependent on the availability of capacity in the electricity grid.

The minister also argued that increasing the share of renewable energies requires investments in the grid to be made quickly.

Economic prospects

According to Carvalho, the State’s stake in REN provides an additional means of intervention, alongside existing mechanisms such as the approval of development and investment plans and independent regulation.

The minister had already linked Portugal’s energy transition to its broader economic prospects, arguing that access to clean energy could influence the country’s ability to compete internationally and attract investment.

“The primary factor in the country’s competitiveness will be the availability and price of clean energy,” she stated.

Second-largest shareholder

Parpública, which is owned by the State, recently completed the acquisition of 13.7 percent of REN from Pontegadea Inversiones, an investment company owned by Amancio Ortega, founder of Inditex and the owner of Zara.

The State exited REN in 2014, and this transaction marks the return of the State to the capital of the electricity and gas network manager. Now, the State is the second-largest shareholder, after the Chinese company State Grid, which holds 25 percent of REN.