Meet the Law | ´Updates in the Energy Sector

Recently, several relevant provisions have been published regarding the Energy Sector, among which we highlight the following:

1.     Statement from DGEG on the extension of the transitional period for adhering to the Electronic Platform of the Entity responsible for the Issuance of Guarantees of Origin (EEGO)

Following DGEG’s Order of June 29th, 2020, which extends the deadlines contained in the Statement of May 13th, 2020, concerning the registration of producers of renewable energy or cogeneration in EEGO's electronic platform for issuing Guarantees of Origin, DGEG has informed the following:

•    In view of the delay in EEGO's processing the registration of several producers and their facilities and taking into account the possible difficulties inherent in the current context and the excessive volume of applications that have been submitted in recent days, making it difficult for EEGO to respond, the transitional period set out in the Statement of May 13th, 2020, is extended until August 31st, 2020, subject to the already established conditions;
•    Therefore, reinstating the provisions of paragraph 10 of the Statement of May 13th, 2020, producers whose enrollment and registration of installations with EEGO is mandatory and not yet registered must register their installations by August 31st, 2020, at https://eego.ren.pt, otherwise measures may be taken to achieve this objective, including the suspension of payments.

DGEG’s Statement can be accessed here.

2.    Order N. º 41/DGEG/2020

On August 10th, 2020, DGEG published on its institutional website Order no. 41/DGEG/2020, which approves rules for transition to the alternative remuneration provided for in Decree-Law no. 35/2013, of February 17 th, when it concerns only part of the total energy produced in wind power plants that have entered into operation in different stages under successive licenses.
Under the terms of the above said Order, wind power plants which, having complied with the respective access requirements, must transit to an alternative remuneration period provided for in Decree-Law no. 35/2013, of February 17th, having reached the end of its guaranteed remuneration period concerning part of the total energy produced, shall be subject to the following rules:
 
•    The transition to the alternative remuneration scheme shall occur  from the end of the month following to the month in which the guaranteed renumbering period has ended, regardless of being either the remuneration scheme foreseen in paragraphs b) or c) of number 1 of article 3 of Decree-Law no. 35/2013;
•    If it is the case, any overpowering (“energia de sobreequipamento”) and additional energy shall cease proportionally to the part of the total produced energy that has transited to the alternative remuneration scheme and shall be considered as merged with it. The combined energy resulting from said merger shall be subject to the alternative remuneration scheme foreseen in Decree-Law no. 35/2013 to which the power plant has adhered;
•    The remaining (non-transited) energy shall maintain the same remuneration scheme as before with, possibly, some adaptations to be determined by DGEG (on the CUR’s initiative) in order to ensure consistency with said remuneration regime and its calculation formula and, if it is the case, with any overpowering or additional energy;
•    The injection of the transited energy in the grid shall be mandatorily measured, under penalty of not being remunerated, being necessary that its meters are installed and operational since the date of the transition. The non-transited energy shall maintain the measurement solutions already existing at the date of the transition, without prejudice to any adaptations to be determined by DGEG (on the CUR’s initiative).
Provisionally, if said plants whose energy has transited in the past six months or will transit in the six months following to the publication of this Order lack the conditions to proceed to a separate metering of the transited energy, they shall be remunerated through the application of the following formula (which weights the production dividing it by the remuneration regimes [generally, two regimes] considering the initial and final dates of the periods of said regimes and its installed power during said period):

WPRE = WTOTAL x (PRE/PTOTAL)
whereby,
WPRE - Energy produced from the Power Plant (kWh) to transit to DL 35/2013
WTOTAL - Total Energy (kWh) produced from the Power Plant (kVA)
PPRE - Installed power in the substation (kVA) corresponding to the energy to be transited.
PTOTAL - Total installed power of the Power Plant (kVA)

The abovementioned provisional rule concerning the plants lacking conditions to proceed to a separate metering shall only apply until six months after the publication of this Order (until 10 February 2021) or, if the transition of energy to the alternative remuneration scheme may occur within the six months following to the publication of this Order, until six months after said event (at best case scenario, until 10 August 2021).

Order no. 41/DGEG/2020 can be accessed here.
 

3.    Ministerial Order no. 195-A/2020

Ministerial Order no. 195-A/2020, of August 13th, has proceeded to the amendment of Ministerial Order no. 41/2020, of February 13th, adjusting the transition period of the guaranteed remuneration regime applicable to power plants that use urban waste as a source to produce electricity.
According to Ministerial Order no. 195-A/2020, the tariff of the guaranteed remuneration scheme– which under the terms of Ministerial Order no 41/2020, of February 13th, would be in force for a period of six months as of February 14th, 2020 (date of entry into force of the Ministerial Order), i.e., until August 14th, 2020 – shall be in force for a period of eight months as of February 14th, 2020, i.e., October 14th, 2020.

Ministerial Order no. 195-A/2020 can be accessed here.
 

4.    Resolution of the Council of Ministers no. 63/2020

On August 14 th, 2020, the National Strategy for Hydrogen (EN-H2) was approved, through Resolution of the Council of Ministers no. 63/2020.
The implementation of EN-H2, which was in public consultation between May 22nd and July 6th, 2020, will be monitored by DGEG, and the evaluation of the progress of its implementation will be carried out biannually from its approval.
This strategy aims to introduce an element of incentive and stability in the energy sector, promoting the gradual introduction of green hydrogen as a sustainable pillar and integrated in a more comprehensive strategy of transition to a decarbonized economy, as a strategic opportunity for the country.

It also sets the following targets to be met by 2030:

•    10% to 15% injection of green hydrogen into natural gas networks;
•    2% to 5% green hydrogen in the energy consumption of the industry sector;
•    1% to 5% green hydrogen in the energy consumption of road transport;
•    3% to 5% green hydrogen in the energy consumption of domestic maritime transport;
•    1.5% to 2% green hydrogen in final energy consumption;
•    2 GW to 2.5 GW of installed capacity in electrolysers;
•    Creation of 50 to 100 hydrogen gas stations.

Resolution of the Council of Ministers no. 63/2020 can be accessed here.