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Solar thermal energy policy 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 heating and cooling: solar thermal energy
Both investment subsidies and tax reliefs are in place in Portugal for solar thermal installations in the residential sector. The Solar Thermal 2009 Scheme, funding both thermosiphon and forced circulation systems with Solar Keymark certification addresses both large companies as well as small and medium-sized enterprises (SME). The maximum level of the incentive is EUR 1600. It can be combined with a 30% tax credit from the Portuguese government for investments in renewable energies. Requirements apply to the large system supplier: eligible large companies must be able to at least produce 50,000 m2 of collector area annually and perform 2,000 installations per month and posess the C.A.P. (Certificate of Professional Proficiency).  Small and medium-sized enterprises (SME) should have less than 250 workers and an annual turnover below EUR 50 million, and be able to produce at least 500 m2 of collector area annually and perform 15 installations per month. Total funds available mount to EUR 95 million for both SMEs and large companies.

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

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

http://www.solarthermalworld.org (sourced June 2009)

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: April 2011



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