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Biofuels in Portugal

General
In Portugal electricity represents around 20% of final energy consumption, of which 30% to 40% is renewable-based, mainly large hydro plants. Of the renewable technologies, wind power has been growing fastest over recent years. Targets exist for new renewables: for wave power a pilot area will be chosen for testing different concepts.

Portugal is developing actions to increase and improve the environmental issues in the energetic laws, with base in the “Estratégia Nacional para a Energia” - RCM n.º 169/2005 (Energetic National Strategy). In this context, all the efforts are to look for a more sustainable energy using the best available technology and, in long term, to support the development of new technologies.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Portugal is 31% (in the year 2005 the share was 20.5%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Portugal
The National Renewable Energy Action Plan (NREAP) for Portugal was submitted in August 2010. The target according to Annex I of Directive 2009/28/EC is 31% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (2322 ktoe, 38% of all renewable energy). Second important contribution is expected from wind power (14.6 TWh or 1255 ktoe, 21% of all renewable energy). The third largest contribution is from hydropower (14.1 TWh or 1210 ktoe, 20% of all renewable energy). Wind power contributes with 6.9 GW (14.6 TWh) in the year 2020 (onshore wind 6.8 GW and 14.4 TWh, offshore wind 0.1 GW and 0.2 TWh). For solar photovoltaic the 2020 contribution is projected to be 1.0 GW (1.5 TWh). For solar thermal the 2020 contribution is projected to be 160 ktoe. The two most important biofuels are projected to contribute 450 ktoe (biodiesel) and 27 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 1.5 TWh (126 ktoe) and for biogas it is expected to be 0.5 TWh (45 ktoe). The consumption of renewable heat is expected to amount to 1484 ktoe for solid biomass and 37 ktoe for biogas.

Renewable transport fuels (biofuel)
The Directive 2003/30EC was transposed into Portuguese law in January 2006. The following biofuel quantities apply: in 2006, 2%; in 2007, 3%; in 2010, 5% (percentages of the previous year's consumption of petrol and diesel). Ministerial Order 353-E/2009, enacted on April 3, 2009, establishes a system for calculating the minimum and maximum prices that will inform the contracts under which biofuel will be acquired from the national biofuel industry for use on the national market, using international product and currency quotations for the purpose.

The target of 10% of RES in the transport sector will be achieved by means of 85% biofuels and 15% renewable electricity, using multiplication factors for road electricity and biofuels from waste, as envisaged by the RES Directive (89% of biofuels and 11% renewable electricity, in real terms).

For some countries like Portugal, where there exists a clear deficit on the Food Trade Balance, biofuels policy and its
effective achievements may be considered a lost opportunity to stick farmers to their lands, thus fighting the abandon of agriculture and subsequent rural migration, and to return to the production of some important food productions (like corn or wheat) that, when the second generation of biofuels arrive, and the biofuels’ business fundamentals change, could well be deviated for food production purposes.

With regard to the current biofuels policy, it is obligatory to incorporate 7% (v/v) of FAME in road diesel. However, although the maximum quantity for incorporating biodiesel in road diesel is limited to the quantity stipulated in norm EN 590, it is possible to sell mixes that are richer in biofuel content, more specifically B10, with 8% to 10% of FAME, B15, with 13% to 15%, and B20, with 18% to 20%, as long as the respective supply equipment is duly labelled.

The current model to support biofuels (21/22 March 2006), valid until 31 December 2010, is based on the attribution of ISP tax exemptions for two different groups of biodiesel producers, i.e. large biodiesel producers and small dedicated producers. As for the support schemes for investments, some types of projects to produce biofuels, more specifically projects for innovation and technological trials, are eligible for the QREN, i.e. for the system of incentives for innovation for technological trials and the system of incentives for research and technological development. These systems of incentives attribute subsidies that range from 35% to 55% of eligible expenditure.

The model provides for a mechanism to support the use of biofuels produced from waste, residues, non-food cellulosic and lingo-cellulosic material, as well as the use of endogenous non-food raw materials, as an incentive to introduce new raw materials that do not exert pressure on the food industry.


Future programme changes expected
No information on future policy changes is available .

Sources

Interactive EurObserv’ER Database, http://www.eurobserv-er.org (status 2007)

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Entry into force on June 25th, 2009), download from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT

Porfírio, J.A. (2011):  Biofuels, the black swan of the renewable energies’policy in Portugal. Universidade Aberta and CIEO, Portugal 2011. http://www.wseas.us/e-library/conferences/2011/Cambridge/EE/EE-05.pdf (sourced June 2011)

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)


Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: June 2011



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