Electric Mobility in Portugal: Incentives, Challenges and Growth of the Mobi.E Network

Electric mobility in Portugal has seen exponential growth in recent years, driven by ambitious public policies, attractive tax incentives, and a growing environmental awareness among consumers. The Portuguese State, through measures such as exemption or reduction of vehicle taxes (ISV and IUC), has played a crucial role in accelerating the energy transition in the transport sector. At the same time, the expansion of the public charging network, coordinated by the Mobi.E platform, has been essential to build user confidence and ensure the large-scale viability of electrification.

In terms of tax incentives, Portugal stands out in Europe for the scope of its policies. Vehicle Tax (ISV) is exempt for 100% electric cars, representing average savings of several thousand euros per vehicle. Annual Circulation Tax (IUC) is reduced by 75% for electric vehicles, making their yearly use significantly cheaper than combustion vehicles. These tax benefits, combined with direct purchase support schemes (such as the Environmental Fund or the “Vale Eficiência” programme), have made electric vehicles more accessible, even considering their higher upfront cost compared to conventional cars.

For consumers, the advantages go far beyond tax savings. Electric mobility translates into lower maintenance costs (fewer moving parts, no oil, filters or clutch), drastic reductions in emissions and noise, and greater energy efficiency. Moreover, the Mobi.E network, with more than 5,000 public charging points nationwide, allows users to locate, book, and pay for charging through a single platform, regardless of the operator. The interoperability and transparency of this system are key factors in boosting user confidence.

However, structural challenges remain. The main one is the need for more infrastructure, especially in rural and inland areas, where charging density is still insufficient. Adapting the vehicle fleet, still mostly made up of combustion cars, requires not only incentives for renewal but also a deep transformation of local electricity infrastructures, distribution networks, and demand management systems.

A concrete example is the investment required by Portugal’s national grid operator, REN (Redes Energéticas Nacionais), to support the installation of high-power chargers (above 300 kW). These are essential to electrify heavy fleets and reduce charging times, but they require medium- or high-voltage connections, dedicated transformers, and reinforced transmission lines. For example, along a major logistics corridor such as the A1 (Lisbon-Porto), a charging station with 10 fast chargers at 350 kW would require contracted power of 3.5 MW — equivalent to the average consumption of 3,500 households. REN would need to invest in substations, conductors, and load management systems to prevent grid overload, especially during peak hours. It is estimated that each station of this kind requires between €1 and €3 million in additional grid investment, depending on location and existing capacity.

Another illustrative case is a logistics company operating 200 trucks (100 heavy-duty, 50 medium-duty, and 50 light-duty). Full electrification of this fleet would involve significant costs:

• Heavy electric trucks: ~€350,000/unit → 100 x €350,000 = €35 million
  
• Medium electric trucks: ~€200,000/unit → 50 x €200,000 = €10 million
  
• Light electric trucks: ~€80,000/unit → 50 x €80,000 = €4 million
  
• Charging infrastructure (depot + on-road): ~€1,500/kW → ~€2.25 million
  
• Training, fleet management software and preventive maintenance: ~€500,000
  

➡️ Estimated total: €49.75 million

Despite the high upfront investment, annual operating costs are drastically reduced: 60–70% lower in fuel and 40% lower in maintenance. With state support (Portugal 2030 and EU funds) and energy savings, the payback period could be between 5 and 7 years, depending on fleet usage intensity.Contact us: comercial@theventurebuilder.pt