Role of gas in Portuguese zero carbon energy sector

This report, based on modelling using BID3, concludes that the decarbonisation of the Portuguese energy system by 2050 is possible and should be done by using a “zero carbon gas” pathway. Using gas infrastructure would save the Portuguese economy over €9bn compared with taking an “all-electric” pathway.

This report prepared for AGN serves as a guide for the Portuguese gas industry, and in particular the owners and operators of distribution networks, to understand how they can contribute to the efficient decarbonisation of the Portuguese energy sector (defined in this study as
power, heat, and rail and road transport), and help achieve the European objective of net-zero emissions by 2050.

The work was underpinned by the BID3 model, in particular the BID3 Auto Build to allow simulation of all sectors of the economy.

Key recommendations include that Portugal’s Roadmap for Carbon Neutrality 2050 be revised to reflect the benefits that could result from the use of gas infrastructure for the development of gases such as biomethane and hydrogen.

We also advise that Portugal take full advantage of its substantial renewable energy sources, especially as these sources also enable large-scale production of green hydrogen at a lower cost than other European countries.

Role of gas in Portugal