Portugal re-enters REN ownership to protect grid assets amid geopolitical shifts

Portugal's government has confirmed its acquisition of a 13.7% stake in REN, the country's electricity and natural gas grid operator, marking its return to the company's ownership structure after a 12-year absence. The move, agreed upon last month, comes as Lisbon seeks to reinforce control over critical energy infrastructure in a period of heightened geopolitical volatility.

The government's decision reverses its earlier exit from REN during Portugal's bailout era, a period that allowed China's State Grid to acquire a 25% holding and become the operator's largest shareholder. While Environment Minister Maria da Graca Carvalho acknowledged that Portugal has maintained constructive dialogue with the Chinese state-owned firm, she stressed that the purchase was motivated by considerations of sovereignty, public interest, national security, and geostrategy.

Speaking before a parliamentary committee, Carvalho pointed to the rapidly shifting global landscape as a key driver behind the decision. "Whether it is this state-owned company or another state-owned company from another country, we cannot ignore the constant geopolitical shifts we have witnessed in recent months," she said.

The minister highlighted the strategic importance of REN's assets — including electricity and gas transmission networks and gas storage facilities — particularly when ownership resides outside the European Union. Existing European and national legal frameworks permit government intervention on sovereignty and security grounds, she noted, describing such measures as precautionary in today's uncertain environment.

Beyond safeguarding infrastructure, the stake is expected to give the state greater leverage over investment decisions. Carvalho said the government aims to "influence from within" plans to expand REN's electricity grid, particularly efforts to accelerate connections for new solar and wind projects. Such developments, she argued, would help lower electricity prices and enhance the competitiveness of Portugal's economy.

"We have a long list of major investments for Portugal that depend on the availability of the electricity grid," she added.