Small-Scale Green Energy: Proposed ANRE Tariffs May Improve Project Profitability

On early days of February 2026, the National Energy Regulatory Agency (ANRE) published for public consultation the draft calculation of adjusted fixed tariffs for small eligible producers of electricity from renewable energy sources, applicable as of 2026. The draft forms part of ANRE’s annual package for adjusting remuneration mechanisms in the renewable energy sector and is available on ANRE’s official website under the “Public Consultations” section.

Unlike other categories of producers, for which reductions in the level of support are proposed for 2026, ANRE proposes an increase in fixed tariffs for small eligible producers as of 1 January 2026, a measure that may have a favorable impact on small- and medium-scale investments in renewable energy.

What the ANRE Draft Specifically Provides

According to the Draft Calculation of Adjusted Fixed Tariffs for 2026 - Small Eligible Producers, published by ANRE on 5 February 2026, tariffs are set separately for two periods: until 31 December 2025; and after 1 January 2026.

A comparison of the proposed values indicates an increase in fixed tariffs for the main renewable energy technologies, as follows:

- solar photovoltaic energy: from MDL 1.67/kWh to MDL 1.79/kWh;

- wind energy: from MDL 1.62/kWh to MDL 1.74/kW;

- hydropower: from MDL 1.52/kWh to MDL 1.63/kWh.

In addition, for certain transitional periods (including 10 October 2025 - 31 December 2025), the draft provides for higher tariff levels, suggesting a phased recalibration of support, aimed at correcting existing imbalances between different technologies and categories of producers.

From an investment stand point, the proposed adjustment is particularly relevant for:

- SMEs installing renewable capacities for own consumption or sale of electricity;

- local investors developing small-scale renewable energy projects;

 - companies considering diversification of their business activities through the integration of energy production.

Higher fixed tariffs improve projected revenues and bankability indicators, facilitating access to financing and supporting the justification of new investments starting in 2026. At the same time, the ANRE draft sends a signal of regulatory predictability, demonstrating that the annual adjustment mechanism is not used solely to reduce support costs, but also to align remuneration levels with economic realities.

Note: Under Law No. 10/2016 on the promotion of the use of energy from renewable sources, a small eligible producer is a renewable electricity producer that: owns installations with an installed capacity below the thresholds established by law and ANRE regulations; benefits from a guaranteed fixed tariff, established by an ANRE decision; does not participate in auction mechanisms or schemes applicable to large producers.

ANRE’s proposals regarding tariffs for small eligible producers indicate that small-scale renewable energy investments continue to be supported at the level of publicpolicy. For the business community, 2026 may represent a favorable moment to initiate or expand such projects, subject to a thorough legal and financial assessment of the applicable regulatory framework.

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