General Framework
In 2004, there have been no major changes at the energy policy level. The framework
is based on the government Cabinet Resolution No. 63/2003, which defines three
main strategic axes:
- To assure the security of the energy supply (reducing the
dependence on primary energy sources, diversifying external
sources, assuring mandatory fuel reserves and guarantying
adequate power generation);
- To promote the sustainable development (supporting the
development of endogenous energy sources - renewables - and
improving energy efficiency, in order to comply with the Kyoto
Protocol commitment and the EU renewable electricity Directive
2001/77/CE).
- To promote the national competitiveness (implementing the
Iberian energy market, promoting gas and electricity market
competition, extending regulation to the gas market and
liberalizing fuel prices).
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National Programme
The Portuguese strategy for the promotion and market development
of renewables is based on a favourable legal framework and incentive schemes, introduced in 2001 (E4 Programme) and further reinforced in 2003 (Cabinet Resolution 63/2003). The government established ambitious targets for 2010, for each renewable technology, according to which wind power will form the bulk of the new installed capacity (3 750 MW by 2010), while PV's contribution is set to increase from the current level of about 2,5 MW to 150 MW. The overall RES contributions will allow Portugal to be able to meet the targets agreed to under the 2001/77/CE Directive - 39 % of the gross electricity consumption from renewables in 2010.
The main legal and incentive framework related to PV is:
- Decree-Law defining the conditions regulating the awarding and
management of grid interconnection points for Independent Power
Producers (IPP).
- Decree-Law establishing a range of favourable feed-in tariffs for RES electricity.
- Decree-Law regulating the delivery of electrical energy into the low-voltage grid (micro-generators, including PV).
- PRIME (Incentive Programme for the Modernisation of the
Economy), which provides financial incentives, namely for energy
efficiency and endogenous energies projects.
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Research, Development and Demonstration
Fundamental research activities are focused on amorphous and
nano-crystalline thin film silicon technologies and involve mainly
public bodies (Universities):
- CENIMAT: Department of Materials Science, Faculty of Sciences
and Technology (New University of Lisbon).
- LAFS: Laboratory of Photovoltaic Applications and Semiconductors (University of Lisbon).
- Department of Ceramics and Glass Engineering/UIMC
(University of Aveiro).
Other institutions, such as Public Research Laboratories (INETI -
National Institute for Engineering, Industry and Innovation), Energy Agencies (ADENE and regional agencies), utilities (EDP) and private research institutions (INESC Porto - Institute for Systems and Computers Engineering), are performing applied research and
implementing PV demonstration projects. Besides these institutions, associations such as SPES (National Solar Energy Society) and
APISOLAR (manufacturer and installer association) are also involved in dissemination activities.
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Implementation
There has been no significant new government initiative in 2004 as far as PV is
concerned. The legislation promoting renewable electricity (IPP law) is already
quite favourable for grid-connection PV applications, with buy-back rates of about
0,32 EUR/kWh (installed power above 5 kWp) and ~0,54 EUR/kWp (installed power
up to 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
and the utility is obliged to buy the whole power.
Financial incentives are available under the PRIME programme
(2003-2006) - III EC Framework Programme. Grants are provided on
the basis of energy and environmental value of the projects, up to
40 % of the total eligible cost, with a maximum grant of 150 kEUR
per application.
Indirect market development incentives for renewables are also
available and include: reduction of VAT rate from 19 % to 12 % on
renewable equipment, custom duties exemption and income tax
reductions (up to 700 EUR for solar equipment).
In spite of this particularly favourable framework, only a few
grid-connected installations have been realized in 2004:
- A Renewable Energy Demonstration Platform, installed at
Labelec premises (campus of Sacavém, near Lisbon). Labelec is
a laboratory and R&D service provider company within the EDP
Group, the largest Portuguese electricity utility. The Platform
includes a 1,4 kWp 2-axis tracking system, a 1,4 kWp fixed
system and a hybrid PV (0,5 kWp)-wind (0,9 kW) system.
All systems are grid-connected and aim at demonstration
purposes and grid interconnection impact assessment.
- A “Solar Energy in Schools” project in the municipality of
Moura (Alentejo, south of Portugal), which started with the
implementation of grid-connected PV systems in three schools,
with installed power of 15, 25 and 35 kWp respectively.
The first Portuguese building integrated project, at the Renewable Energy Department of INETI, was slightly delayed and is expected to be concluded early 2005. The 12 kWp grid-connected system, to be installed on the south vertical façade of the building, is part of a broader project - Solar Building XXI - which also includes the use of passive and active solar thermal and daylighting. The project is partly supported by the PRIME programme.
Another initiative from the utility side should also be stressed:
Enernova, a renewable energy company within the EDP Group, is
planning to implement its first medium size power plant (300 kWp)
in Sines (Alentejo). The preliminary technical and economical studies were carried out in 2004, together with the site selection. The system will likely be installed and operational in 2005.
There has been no significant development concerning the announced world largest
centralized PV power plant (64 MWp), to be built at the municipality of Moura
(Alentejo). The complex negotiation process among the major stakeholders is
still underway. This involves the promoter (Amper Central Solar, S.A.), the
Moura municipality, BP Solar (which will do the turn-key installation and will
build a module assembly factory near Moura), the financial institutions (which
will provide the investment on a project finance basis) and the government's
Directorate General for Energy (feed-in tariff discussion).
Besides these initiatives, there is a clear sign of growing interest in PV from IPP promoters, considering the huge amount of requests for grid interconnection points (the first stage of the licensing process in order to get the installation permits) received by the Directorate General for Energy, the government agency which is managing this process. The overall power requested in 2004 totalled 5,28 MWp, for a total number of 471 PV systems, with the following distribution:
If all these systems were realized in 2005/2006, they would more than double
the total current installed capacity in Portugal and lead to a considerable
change in the share of on-grid applications when compared to off-grid applications,
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Industry Status
Lobo Solar, located in Evora, is currently the sole Shell Solar module assembly plant in Europe, with a total capacity of 17 MWp per annum. The factory, which employs about 90 people, manufactures both mono and multi-crystalline modules.
Besides PV modules, there are two solar type and stationary battery manufacturers (Tudor 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(low power charge regulators, ballasts, etc.).
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Market Development
The total installed PV capacity by the end of 2004 was about
2,3 MWp, of which 79 % are stand-alone applications and 21 % are
grid-connected applications. The market continued to grow in 2004,
although at a lower rate, and mainly based on off-grid applications.
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Future Outlook
The PV market in Portugal is expected to grow significantly in the
next few years, based mainly on grid-connected application, either
small scale systems up to 5 kWp, which are particularly costeffective due to the high tariff rate (~0,54 EUR/kWh), or medium to large scale systems, including multi-megawatt power plants.
The major barriers to the widespread of PV, namely in the built
environment, have been identified and the following measures still
need to be adopted:
- simplify the licensing procedures as well as the grid-connection
regulations, especially in the case of small systems connected
to the low voltage grid;
- development of building codes for PV building integration;
- implement a national certification scheme for equipment and
installers, aiming at better quality assurance.
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Further reading about Portugal
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