TEP Business R&D&I Energy supports integrated research, development, and productive innovation projects focused on the development and manufacturing of critical clean and net-zero energy technologies in Portugal. Under the European Strategic Technologies for Europe Platform (STEP), the programme helps companies bring advanced technologies to commercial production while strengthening strategic European value chains.
The current call, COMPETE2030-2026-11, has a budget of €75 million under COMPETE 2030 and supports collaborative projects led by companies, combining R&D activities with productive investment.
Programme details
- Application deadline :4 January 2027, at 17:00 (Lisbon time)
- Beneficiary entities: Companies of all sizes, including large companies, small mid-caps, SMEs, micro-enterprises and startups, participating in company-led consortia. Research and innovation entities (ENESII) may also participate.
- Benefit: Non-repayable grant of up to 80% for R&D activities (85% for eligible ENESII) and up to 70% for productive innovation, depending on company size and investment location.
- Minimum investment: €5,000,000 in eligible expenditure per application, generally below €25,000,000 unless duly justified.
- Geographic scope: Norte, Centro and Alentejo (mainland Portugal), subject to the applicable programme and regional eligibility rules.
About the funding
STEP Business R&D&I for Energy supports investment projects that combine industrial research, experimental development and productive innovation within a single operation. The programme aims to accelerate the development and commercial production of critical clean and resource-efficient technologies, including net-zero technologies, while reinforcing the European Union’s industrial competitiveness and strategic autonomy.
Eligible projects must contribute to the development, manufacturing or strengthening of value chains associated with:
- Solar, wind, offshore renewable energy and other renewable technologies.
- Batteries, energy storage, heat pumps and geothermal technologies.
- Hydrogen technologies, including electrolysers and fuel cells.
- Sustainable biogas, biomethane and alternative fuels.
- Carbon capture, utilisation, transport and storage technologies.
- Electricity grids, electric vehicle charging and industrial decarbonisation.
- Advanced materials, manufacturing, recycling and circular economy technologies.
The programme also covers other critical technologies and specialised components, machinery, raw materials and services that are essential to their development and manufacturing. Projects must demonstrate technological innovation or a meaningful contribution to strengthening European value chains and reducing strategic dependencies. R&D activities should primarily focus on higher Technology Readiness Levels (TRL), supporting the transition from advanced technological development to industrial deployment and market introduction. The maximum project duration is generally 36 months, with longer periods possible when duly justified.
How it works
This call supports integrated projects carried out through co-promotion consortia led by companies. Each project must combine R&D activities with productive investment, ensuring that technological developments can be incorporated into commercial operations. Consortia must include the entities necessary to cover the critical stages of the value chain and bring the resulting technologies to market.
Eligible projects must demonstrate:
- Strategic relevance to European clean technology priorities and STEP objectives.
- Technological maturity and potential for industrial deployment.
- Effective collaboration between participating companies and research entities, where applicable.
- Economic viability and a clear pathway to commercial production.
- Contribution to European competitiveness and the reduction of strategic dependencies.
Consortia are generally limited to 10 beneficiaries, unless a larger structure is duly justified. Each company may participate in up to two applications, as consortium leader or co-promoter. R&D funding rates depend on the type of activity, company size and applicable bonuses. Industrial research has a base rate of 50%, while experimental development has a base rate of 25%. These rates may increase to a maximum of 80%, subject to the applicable conditions. Eligible ENESII may receive up to 85%.
For the productive innovation component, maximum support rates depend on the investment location and company size, according to the STEP regional aid ceilings.
The programme includes priority allocations for sustainable aviation projects aligned with the Clean Aviation Joint Undertaking and for eligible projects developed under the Phase 4 partnerships with MIT, Carnegie Mellon University and UT Austin.
Applications are assessed according to strategic alignment with STEP objectives, project quality, execution capacity and expected impact. Projects must achieve an overall assessment score of at least 3.50 out of 5, with a minimum score of 3.00 in each evaluation criterion.
Investment activities can only begin after the application has been submitted, except for eligible preparatory studies.
Eligible investment expenses
Eligible expenditure under STEP Business R&D&I Energy covers both the research and development component and the productive innovation component.
R&D component:
- Personnel costs, including researchers, technical staff and research fellows.
- Acquisition or licensing of patents and intellectual property rights.
- Raw materials, consumables and components for prototypes, pilots and demonstration facilities.
- External scientific, technical and specialised consultancy services.
- Scientific equipment, instruments and specialised software, subject to applicable depreciation rules.
- Costs associated with dissemination, project-related travel, eligible certifications and technical audits.
- Indirect costs calculated at a flat rate of 7% of eligible direct R&D costs.
Productive innovation component:
- Machinery and production equipment not powered by fossil fuels, including installation costs.
- IT equipment and software necessary for the investment.
- Intangible assets, including patents, licences, technical know-how and software.
- For SMEs, eligible engineering services, technical studies, audits, diagnostics, DNSH studies and marketing plans.
- Construction or refurbishment of facilities, when justified, generally limited to 20% of eligible productive investment costs.
- Wage costs associated with net job creation over a maximum of two years, as an alternative eligible cost basis under the applicable conditions.
All expenditure must be directly associated with the approved investment and comply with the programme’s eligibility requirements, regional aid limits and applicable State aid rules.
Who can benefit from this incentive
STEP Business R&D&I Energy is aimed at companies developing critical clean energy technologies that require both advanced research and industrial investment to reach commercial production.
It is particularly relevant for businesses that:
- Develop or manufacture clean, net-zero or resource-efficient technologies.
- Invest in components, machinery or critical materials within European energy technology value chains.
- Need to combine R&D with the creation or expansion of industrial production capacity.
- Can establish strategic partnerships with other companies, universities or research organisations.
- Plan substantial investment projects in eligible Portuguese regions and seek to strengthen their international competitiveness.
Understanding the eligibility criteria, consortium requirements and applicable funding rates is essential to assess whether a project qualifies for this incentive. For clarification or further information, reach out through our contact form.
