Azorean Government boosts strategic investment in energy and public works in 2027 Regional Budget - Communication

Secretaria Regional do Turismo, Mobilidade e Infraestruturas

The Regional Secretary for Tourism, Mobility and Infrastructures, Berta Cabral, emphasised before the parliamentary committees of the Legislative Assembly of the Autonomous Region of the Azores that the Regional Budget proposal for 2027 reiterates the Azorean Government’s commitment to a policy of sustainable development, energy transition and structural investment across all the islands.

She emphasised that 2027 marks a new phase for the Region. It is the first financial year following the completion of the Recovery and Resilience Plan (RRP). This instrument has enabled transformative investments to be made in key areas, notably energy, infrastructure and the modernisation of public services.

In the energy sector, the Regional Budget provides for an investment of around €3.5 million, which will be complemented by a new generation of incentive schemes designed to address the current energy transition challenges and promote more efficient and sustainable investment.

Among the new measures under the Azores 2030 Operational Programme, particular emphasis is given to support for the installation of electricity storage systems linked to photovoltaic solar panels, thereby increasing self-consumption of renewable energy and reducing energy bills for Azoreans.

A new support mechanism for the refurbishment of buildings will also be implemented under the Azores 2030 Operational Programme, as part of an integrated approach which, by supporting major refurbishments, combines improved energy performance with enhanced comfort and well-being for households, businesses and other organisations.

Berta Cabral also emphasised that the success of the SOLENERGE programme, which met all its established targets and goals ahead of schedule, demonstrates the Region’s ability to implement effective public policies in the energy sector. It also sets a benchmark for the new tools that will be put into practice.

The government official also revealed that the Regional Government continues to work, in coordination with national authorities, on preparing the Social Climate Plan. This mechanism will create unprecedented conditions for supporting vulnerable groups, including households, micro-enterprises and small businesses.

Despite the challenges posed by developments in international energy markets, geopolitical conflicts and European decarbonisation targets, “we remain committed to reducing dependence on fossil fuels, harnessing local energy resources and promoting a more sustainable economy.”

In this context, the Azores Energy Strategy 2030 will also be revised, with a view to adapting it to the new reality and extending its validity until 2050, whilst also continuing to develop the regulations necessary for the full implementation of the new Azores Electricity System.

In the field of sustainability, Berta Cabral highlighted the ongoing investment in certifying the Azores as a “Sustainable Destination,” with the Region now in the final stages of the process to achieve EarthCheck Level 3 Gold. The results of the most recent benchmarking report show positive progress, with 15 indicators above the baseline and nine indicators recognised as international best practice.

As for public works, the Regional Secretary emphasised that the Region’s draft Budget for 2027 resumes structural investments that had been temporarily put on hold to prioritise the implementation of the RRP.

The planned investment in regional roads amounts to around €75.5 million, including €49.1 for commitments regarding the São Miguel toll-free motorways and €26.4  for other road infrastructure.

The planned projects include the redevelopment of the regional road linking the city of Horta to the airport, the upgrading of the section between Santa Cruz da Graciosa and Praia, and the continuation of work on the Capelas bypass. The plans also include measures to repair infrastructure damaged by natural disasters and initiatives to integrate the landscape in various areas adjacent to the regional road network.

Technical studies are also continuing for future structural works, notably the second phase of the Furnas–Povoação link, the access roads to Ribeira Quente, the Ponta Garça bypass, the upgrading of Via Vitorino Nemésio on Terceira Island and the link between Ponta Delgada and Mosteiros.

Regarding public facilities, the Regional Budget allocates nearly €10 million for works in more than fifteen educational establishments, including the construction of the new building for Antero de Quental Secondary School, the new premises for Lagoa Basic Education School and refurbishment works in various schools across the Region.

In the health sector, the planned investment amounts to €6.7 million, covering works in the Divino Espírito Santo Hospital, the Horta Hospital and seven health centres spread across various islands.

The Regional Budget also includes investments of over €1 million in fisheries support infrastructure, €7.6 million for the management and redevelopment of the coastline, €4.6 million for environmental projects, as well as specific allocations for the enhancement of public heritage, sports facilities, cultural heritage and support for the agricultural sector.

Berta Cabral emphasised that, whilst the Azorean Government ensured the successful implementation of the Regional Recovery Programme (RRP), preparatory work was also carried out to enable the Region to now move forward with a wide range of structural investments across all islands.