Portugal
PV technology status and prospects
Pedro Sassetti Paes, Labelec - EDP group
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General Framework

Fig. 1 - Rural electrification (individual system) in Gouveia. The Portuguese energy system is characterized by:

In 2001, the government launched a new energy policy instrument –the E4 Programme (Energy Efficiency and Endogenous Energies), consisting of a set of multiple, diversified measures aimed at promoting a consistent, integrated approach to energy supply and demand. By promoting energy efficiency and the use of endogenous energy sources, the programme seeks to upgrade the competitiveness of the Portuguese economy and to modernize the country’s social fabric, while simultaneously preserving the environment by reducing gas emissions, especially the CO2 responsible for climatic change.

Aiming at simultaneously assuring the security of supply, reducing the energy bill and preserving the environment, the E4 strategy relies upon three main lines of action:

While in the past 5 years the main priorities were focused on the introduction of natural gas (aiming at progressively substituting oil and coal in the energy balance) and liberalization of the energy market (by opening this former state-owned sector to competition and private investment), the emphasis for the next 8-10 years will be put on energy efficiency (supply and demand sides) and exploitation of endogenous (renewable) energy.
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National Programme

The E4 Programme established goals concerning the exploitation of renewable energy sources (RES) for power (and thermal) generation, which are consistent with the recently approved EU Directive (2001/77/CE) on renewable electricity, under which Portugal has to aim to deliver 39 % (including large hydro) of its gross electricity consumption by 2010.

The goals for 2010 are:

A set of initiatives (legislation, incentive schemes) have been introduced in 2001/2002, aiming at stimulating the market (private investors), not only for RES electricity, but also for CHP, solar thermal use and building energy efficiency, namely:

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Research, Development and Demonstration

Fig. 2 - Centralized hybrid system (PV+diesel) for village supply. (Ourique) PV R&D activities are carried out by Universities and National Laboratories (e.g., INETI – National Institute for Engineering and Industry Technology) and mainly address amorphous and thin film crystalline silicon technologies.

Applied research, demonstration and dissemination also involve Universities and Public Research Laboratories (INETI), as well as Energy Agencies (ADENE and regional agencies), utilities and associations such as SPES (National Solar Energy Society) and APISOLAR (manufacturer and installer association). Demonstration systems concern mainly remote electrification and professional system applications (TV and telephone repeaters, parking meters, water pumping), as well as some of the few grid-connected systems.
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Implementation

Among the government initiatives introduced in the framework of the E4 Programme, the new (revised) legislation promoting renewable electricity deserves special emphasis: the tariff rates are now differentiated by technology, allowing not only to maintain development of well-established technologies (wind, mini-hydro) but also to support introduction of new ones, with high potential in the medium run, such as PV and wave power. For PV, the new buy-back rates of 0,28 EUR/kWh (systems over 5 kWp) and 0,50 EUR/kWp (systems under 5 kWp), make PV investments considerably more attractive than the former tariff (0,06 EUR/kWh).

Financial incentives for renewables and energy efficiency applications are available under the POE programme (2000-2006) – III EC Framework Programme. Grants are provided on the basis of energy and environmental value of the projects, typically ranging from 20 % to 40 % of the total eligible costs, with a maximum of 150 kEUR per application. The total indicative budget for renewables and co-generation projects is 350 MEUR for the whole period.

Indirect market development incentives for renewables are also available: reduction of VAT rate from 17 % to 12 % on renewable equipment, custom duties exemption and income tax reductions.

This new legal and incentive framework has already contributed to an increased interest in PV applications, of which 2 initiatives deserve a special emphasis:

Non government institutions and private companies are also involved in PV implementation:


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Industry Status

Shell Solar has a factory in Portugal (Évora), manufacturing mono and multi-crystalline PV modules (cell assembling), mainly for exports. In 2002, Shell Solar manufactured more than 80 thousand modules, with a total output of 10,8 MW.

There are two solar type and stationary battery manufacturers (SPAT, AUTOSIL).

A dozen companies are supplying and installing PV modules and BOS components imported from the EU, USA and Japan. A few of these companies produce power electronics for stand-alone PV applications (small charge regulators, ballasts, etc.).
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Market Development

According to the most recent survey, the total installed PV capacity by the end of 2002 was about 1 500 kWp, of which 82 % are stand-alone applications and 18 % are grid-connected applications.

The effect of the new framework is still not visible in the market development: apart from the significant growth occurred in 1999, thanks to the BP Sunflower programme, the market seems to stabilize at around 150-200 kWp installed power per year, mainly in stand-alone applications.
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Table 1. Installed PV power in Portugal (1990-2001)
YearStand-alone [kWp]Grid-connected [kWp]Total annual power [kWp]Cumulative [kWp]
199055 5579
199143 43122
199247 47169
1993401050219
199440 40259
199575277336
199688 88424
1997985103527
199810021121648
1999100146246894
2000142331751 069
2001128511791 248
Total by end 20019802681 248 
Percentage79%21%  
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Future Outlook

Installed PV power in Portugal The Portuguese strategy for the promotion of renewables, introduced by the E4 Programme, created a favorable legal framework and incentive schemes which will likely contribute to meet the targets agreed under the EU Directive on the promotion of electricity from RES in the internal electricity market. Wind will form the bulk of the new installed power (3 000 MW) over the next 8 years, while PV’s contribution is set to increase from the current level of about 1,5 MW to 50 MW by 2010.

This target will be reached earlier if the 64 MW power plant, under development, will be realized. However, a few critical barriers still remain for the widespread of PV in the built environment: PV price, equipment and installers’ certification, low voltage grid-interconnection legislation, building codes for PV integration.
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Further reading about Portugal

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