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Portugal Photovoltaic technology status and prospects Pedro Sassetti Paes, Labelec - EDP group |
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2003 > Last updated: 30 May 2004 |
In 2003, the government defined a new energy policy framework (Cabinet Resolution
No. 63/2003), relying upon three main strategic axes:
The current energy policy framework is in line with the E4 Programme and, for some RES, the Portuguese government has set even more ambitious targets for 2010, namely:
The initiatives (legislation, incentive schemes) 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, are underway. These are namely:
Applied R&D and demonstration is carried out by Universities and Public Research Laboratories (INETI – National Institute for Engineering and Industry Technology), as well as Energy Agencies (ADENE and regional agencies), utilities (EDP) and private research institutions (INEC Porto - Institute for Systems and Computers Engineering). Besides these institutions, associations such as SPES (National Solar Energy Society) and APISOLAR (manufacturer and installer association) are also involved in dissemination activities.
Demonstration systems concern mainly remote electrification and professional system applications (TV and telephone repeaters, parking meters, water pumping), as well as some of grid-connected systems realised by the utility EDP. More recently, Labelec (a company of the EDP Group) designed a small hybrid PV (3,2 kWp)-wind (0,9 kW) grid-connected system, to be installed early 2004 at its premises (campus of Sacavém); aimed mainly at demonstration and grid interconnection impact assessment.
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The most significant government initiative introduced in the framework of the
E4 Programme and supported by the 2003 Cabinet Resolution, was the legislation
promoting renewable electricity (higher feed-in tariffs, differentiated by technology).
Under this legislation, which applies only to IPP, the current buy-back rates
for PV are ~0,30 EUR/kWh (systems over 5 kWp) and ~0,52 EUR/kWp (systems under
5 kWp), guaranteed for the lifetime of the plant, with automatic adjustments based
on the inflation rate. IPP must deliver all the generated power to the grid, the
utility being obligated to buy the whole power.
The so-called “producer-consumer” law, aiming more at the residential and small industry markets, allows for micro-generators (microtur-bines, fuel cells, Stirling engines, etc., and also PV) to be connected to the low-voltage grid. Any individual or company may become an independent producer under this law, provided at least 50 % of the generated energy is self-consumed. Therefore, the utility is only obligated to buy half the generated power at a feed-in tariff depending on the technology. For PV, the buy-back rate is about 0,25 EUR/kWh, which, for small systems up to 5 kWp, is considerably lower than the IPP tariff, making this scheme considerably less attractive.
The technical regulation and licensing process already implemented under this legislation concern system ranging from 11 kW to 150 kW. For smaller systems, i.e., up to 16 Ampere per phase (3,68 kW single-phase or 11 kW 3-phase), a simplified process, in preparation, will likely be implemented.
Financial incentives for renewables and energy efficiency applications are available under the POE/PRIME 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 grant of 150 kEUR per application.
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 (up to 700 EUR for solar equipment).
In spite of this favourable legal and incentive framework, especially in the grid connected domain, in 2003 only a few installations have been realized or are under preparation/negotiation. However, a high number of requests for grid interconnection points (mainly for systems up to 5 kWp) have been presented to the Directorate General for Energy, the government agency which is managing this process; which clearly indicates a growing PV awareness and attractiveness from IPP promoters.
The BP Harmony Project, formerly Sunflower Project, which consisted in the integration of PV modules on BP filling station canopies and was responsible for the installation of about 350 kWp grid-connected systems, has come to an end. The most significant new initiatives are:
There are two solar type and stationary battery manufacturers (SPAT and 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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The total installed PV capacity by the end of 2003 was about 2 MWp, of which 87
% are stand-alone applications and 13 % are grid-connected applications. The market
continued to grow in 2003, mainly based on off-grid applications. The grid-connected
market decreased significantly as a result of the conclusion of the BP’s petrol
station programme.
As far as PV is concerned, in spite of this framework, the number of new initiatives in 2003 was insignificant, with the exception of the 64 MW power plant under planning in Moura. Nevertheless, there seems to be a growing interest in PV from IPP promoters, considering the high number of requests (about 50) for grid interconnection points received by the government’s Directorate General for Energy, especially for small systems up to 5 kWp.
There are still a few barriers to overcome for the widespread use of PV in the built environment, which is believed to dominate the future market in Portugal. These are namely: lack of regulations for grid interconnection of small systems at the low voltage level, lack of building codes for PV integration and the need to simplify the licensing process for PV installations, which is currently too complicated and time-consuming.
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