PORTUGAL - 130 MW in photovoltaic energy - under development

Portugal is one of Europe's most mature markets in renewable energy project development and operation. Currently Portugal has a mix of renewables mainly based on wind and mini-hydro. Nevertheless, and in order to achieve its 2020 objectives, the Government will have to support a new wave of investment, especially in solar-powered units. 

The support system for renewable energy in Portugal is a combination between the feed-in tariff and tendering processes, which has proven to be efficient in building a local manufacturing industry of WTG (Wind Turbine Generators) as well as promoting the development of new wind capacity. This mixed support scheme is expected to remain in place, although the tariffs are expected to be adjusted downwards according to the evolution and degree of market maturity. 

Renovatio's entrance in the Portuguese market relied on a fast-paced, prime location occupancy approach. The company entered the market in early 2010 and has been targeting the best areas for solar energy since then. In spite of heavy competition, the company has managed to build a pipeline of 130 MW in solar projects. 

The strategy for Portugal is to develop projects that would prove profitable and be competitive on a market-based tendering process. A winning energy price in a tender has to be supported by a well-located, reliable production unit that generates an attractive return on investment. Therefore, it is critical to control development costs, accurately estimate the energy potential and locate the project close to connection points.