Structure of generation sector
2.1.1 The generation sector in Portugal includes traditional power plants, such as gas and coal fired combined-cycle power plants. The key power plants are Central Termoelétrica do Ribatejo (1200MW), Central Termoelétrica de Sines (1180MW), Central de Ciclo Combinado da Tapada do Outeiro (990MW) and Central Termoelétrica de Lares (884,5MW). The producers may sell their electricity through MIBEL or through bilateral contracts. According to the Regulatory Entity for Energy Services (ERSE), in February 2012, the electricity produced in Portugal totalled 3.673GWh, while the installed capacity was 12.053MW.
Energy mix
Portugal is a country with scarce non-renewable energy resources, as it does not have coal mines or oil or gas deposits. The primary and main sources of energy produced in Portugal are solid fuels, geothermal energy, hydropower energy and solar/wind energy.
The scarcity of energy resources has meant that Portugal has relied heavily on energy imports, including imports of primary sources of fossil fuels (coal, oil and natural gas). This has recently changed due to the development of indigenous energy sources. According to the Directorate General for Energy and Geology, the dependency rate has been decreasing since 2005 (from 89% in 2005 to 76.7% in 2010). In 2010, the percentage of imported energy in relation to total energy consumption was 49.1% for oil, 19.7% for natural gas and 7.2% for coal. According to the same report, renewable energy represents 22.8% of Portugal’s total energy consumption (please refer to section 5 Country Statistics).
2.1.2 Portugal has a great potential for renewable energy, such as hydro, wind, solar and biomass. In the last seven years, the number of renewable power plants has increased considerably, especially hydro and wind plants which were strongly encouraged by the government.
2.1.3 Suppliers of last resort (companies which have public service obligations, such as universal service) are obliged to purchase all electricity generated by renewable energy plants connected to the electricity grid. Special feed-in tariffs also apply in this situation.
2.1.4 The electricity generated by renewable energy sources can also be purchased in the market. In this case, the price is set by the market.
2.1.5 Electricity grid operators are required to prioritise electricity produced by renewable plants, except if produced by hydroelectric plants with an installed power of more than 30MW.
2.1.6 At the end of February 2013, the total installed capacity of renewable plants in Portugal was 10.844MW.
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