General Framework
Portugal has no fossil energy resources. The strong dependence on imports of oil and coal, which are the basis of the energy consumption structure, is much higher than the European Union average. On the other hand, Portugal is one of the EU countries, which makes more use of its available renewable energy resources (mainly biomass and hydropower), as part of its energy mix. The government energy policy has, therefore, the following objectives:
![Photo 1: 5 kWp AC-Module PV System [Photo: EDP, Faro]](images/prt01.jpg)
- to reduce energy dependence and develop endogenous resources;
- to reduce dependence on oil and coal and diversify sources and origins;
- to reduce the environmental effects of production/use of energy;
- to reduce the energy bill;
- to increase the efficiency of supply;
These goals are expected to be achieved through an energy policy based on:
- renewable energies
- rational use of energy and energy efficiency
- natural gas project
- restructuring and liberalization of the electric and oil sectors.
Nevertheless, the main priorities have been focused on the introduction of natural gas (aiming at the progressive substitution of oil in the energy balance) and the energy market liberalization (by opening this former state-owned sector to competition and private investment).
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National Programme
No specific programme or targets for Renewables (PV in particular) have been formulated so far. The most relevant government's initiatives for promoting the use of RES and stimulating market development has been the ENERGIA programme (1994-1999) - partly supported by the European Union (EU) Framework Programmes - and the Independent Power Producers (IPP) law, introduced in 1988. So far, this particular legislation has mainly benefit mini-hydro schemes (up to 10 MVA) and wind farm developments, which are currently the most cost-effective applications of RES.
The IPP law, in particular, was introduced in 1988 and further revized (1995 and 1999), for consistency with the implementation of a new regulatory framework for the electricity sector. The IPP law allows for public or private entities or private individuals to generate electricity from any type of renewable energy source and sell it to the grid, provided certain technical conditions for interconnection are guaranteed.
Tariff paid for renewable electricity is based on the avoided cost by the Public Electric System (investment in new power plants, transport and O&M costs) and on the environmental benefits of the use of RES ("green tariff" component, guaranteed for the first 12 years of the plant operation). For the most common applications, the tariff rate ranges from 5,5 to 6,5 cEuro/kWh, whatever type of RES. No net-metering or special technical specifications and buy-back rates for PV have been developed so far.
A broader national programme, the Operational Programme for Economic Development (POE), launched in 2000, includes, for the energy sector, incentive schemes on renewables, energy conservation and rational use of energy. Specific regulations will only be available in 2001.
Other indirect market development incentives for renewables consist in reduction of VAT rate from 17% to 5% on renewable equipment, custom duties exemption and income tax reductions.
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Research, Development and Demonstration
![Photo 2: BP Sunflower Project: 20,9 kWp grid-connected system [Photo: BP, Lisbon]](images/prt02.jpg)
The R&D activities in PV did not change significantly in 2000 compared to previous reported years (1994-1999). The total annual R&D expenditure lies in the range 0,7-1 MEUR, including financial support from the relevant EU funding programmes (5th R&D Framework Programme).
In the solar cell technology field, R&D carried out in Universities and National Laboratories mainly addresses amorphous and thin film crystalline silicon.
Applied research, demonstration and dissemination activities, involving Public Research Laboratories, Energy Agencies, Universities and utilities, are the most relevant PV activities. The applications concern mainly remote electrification and professional systems (TV and telephone repeaters, parking meters, water pumping), as well as some of the few grid-connected systems.
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Implementation
The EDP Group, the largest Portuguese electric utility, partially privatized (~70% of its share capital) in 1997, 1998 and 2000, has been involved in several PV initiatives as part of its R&D activities on New Energy Technologies. These include participation in international networks (e.g., EURELECTRIC, EURE) or cooperation programmes (e.g., IEA PVPS) and in demonstration projects supported by the EU or ENERGIA, either in stand-alone, on-grid distributed or building integrated applications.
EDP has been involved in the following PV projects:
- Grid-connected PV/Inverter Units on Flat Roofs of Office Buildings and Hangars in Portugal and The Netherlands (THERMIE, 1993-1996)
The project resulted in the installation of Portugal's first grid-connected PV system (10 kWp), in one office building of EDP's distribution company (Setúbal) and has been in operation, successfully, since July 1994.
![Photo 3: Stand-alone hybrid PV/wind/diesel system [Photo: EDP, Ourique]](images/prt04.jpg)
- Use of PV or hybrid systems for supplying electric power to small, isolated villages not connected to the national grid, as an alternative to its extension
A feasibility study carried out by CCE (the Centre for Energy Conservation) and INETI (National Institute for Engineering and Industrial Technology) for assessing the potential market for PV in stand-alone applications.
- OURIQUE - Optimized Use of Rural Integrated Quality Electrification (THERMIE + ENERGIA, 1996-2000)
Aiming at demonstrating the feasibility of supplying electricity from renewable energy sources to remote hamlets, on an equivalent grid quality basis. Three PV/Wind/Diesel centralized systems (totalling 42 kWp / 55 kW / 3x15 kVA) were realized, supplying electricity through low voltage distribution grids to five small villages (~ 120 inhabitants) located in the Ourique municipality (South of Portugal). The national partners included CCE, EDP and the local municipality.
- AC-Module PV systems in Italy, Portugal and the Netherlands (THERMIE, 1997-2000)
Aiming at demonstrating the use of AC-modules in buildings. A 5 kWp grid-connected system was installed and put in operation, in the early 1998, in one of EDP's distribution company office building (Faro).
- Studies to provide electricity to remote locations in Portugal mainland, including small islands, are underway.
The most visible PV private initiative in the past two years has been the BP "Sunflower Project", leading to a significant increase in the share of grid interconnected systems to the total installed PV capacity. The Sunflower Project, started in 1998 with a pilot plant installed in the neighbourhood of the Lisbon Expo'98 site, consists in the integration of PV modules on BP gas station canopies.
Fourteen grid-connected systems, with installed power ranging from 14 to 22 kWp per system, were realized in the period 1998-2000, representing a total capacity of about 250 kWp.
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Industry Status
There are no PV cell/module manufacturers in Portugal. About 10 companies are supplying and installing PV modules and other system components imported from EU (BP, Shell, Siemens, Atersa), USA (Solarex) and Japan (Kyocera). The manufacturing capacity in the PV sector is limited to solar type or stationary battery manufacturers (SPAT, AUTOSIL) and some small power charge regulators and appliances.
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Market Development
The total installed PV capacity by the end of 2000 is about 1000 kWp, of which 73% are stand-alone applications (52% in the domestic sector and 20% in the service sector). The BP "Sunflower" Project (canopy integrated PV systems in gas stations) was responsible for the significant increase in grid-connected applications, which represent currently about 26% of the overall PV capacity. The average annual growth in the period from 1995 to 2000 was 25%.
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Future Outlook
The EU strategy for the promotion of renewables in Europe and, in particular, the expected Directive on the Promotion of Electricity from Renewable Energy Sources in the Internal Electricity Market, will likely contribute to the definition of a national Renewable Energy Programme based on targets for each type of RES. The indicative figures for Portugal targets for renewable electricity, expressed as a percentage of gross electricity consumption by 2010, are 21% without large hydro (~5% in 1997) and 45% with large hydro (38% in 1997).
Although this target will mainly be reached through wind and mini-hydro power, the opportunity exists for developing other applications, such as biomass, PV and wave energy. However, as far as PV is concerned, critical barriers still need to be overcome in Portugal in order to allow a large scale market penetration: price, equipment certification, specific legislation for grid interconnected PV systems, eventual development of modules and inverters industry.
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Table 1: Installed power in Portugal (1984-2000)
| Year |
Rural electrification |
Other residential |
Service |
R&D |
Grid-connected |
Total |
| 1984 |
0,6 |
|
|
|
|
0,6 |
| 1985 |
0,6 |
|
|
|
|
0,6 |
| 1986 |
|
|
|
|
|
0,0 |
| 1987 |
1,5 |
|
|
|
|
1,5 |
| 1988 |
1,5 |
|
|
|
|
1,5 |
| 1989 |
15,0 |
|
2,6 |
2,3 |
|
19,9 |
| 1990 |
22,2 |
28,8 |
4,5 |
|
|
55,4 |
| 1991 |
7,2 |
30,5 |
4,9 |
|
|
42,5 |
| 1992 |
|
30,5 |
1,8 |
15,0 |
|
47,2 |
| 1993 |
|
33,0 |
6,9 |
|
10,0 |
49,9 |
| 1994 |
|
31,4 |
8,4 |
|
|
39,9 |
| 1995 |
4,5 |
48,4 |
22,2 |
|
2,0 |
77,1 |
| 1996 |
|
65,9 |
22,6 |
|
|
88,5 |
| 1997 |
|
63,0 |
34,7 |
|
5,0 |
102,7 |
| 1998 |
|
50,0 |
50,0 |
|
20,9 |
120,9 |
| 1999 |
|
50,0 |
50,0 |
|
146,4 |
246,4 |
| 2000 |
42,0 |
n.a. |
n.a. |
n.a. |
83,5 |
125,5 |
| TOTAL |
94,9 |
431,3 |
208,5 |
17,3 |
267,8 |
1019,9 |
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Further reading about Portugal
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