About

Located in southwestern Europe, Portugal is the westernmost country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east. The Atlantic archipelagos of the Azores and Madeira are also part of Portugal.

The country has a population of 10 million people and covers a land area of 92 345 sq km. As the sunniest spot in Europe, with a long coastline and abundant wind, the country intends to take advantage of what nature has given it, and establish itself as a global clean-tech leader.

Strategy

Portugal expects to generate 31 per cent of all its energy from clean sources by 2020; the country already exceeds its 2010 renewable energy targets. Portugal’s renewable energy plans include the world’s largest wind, wave and solar energy facilities.

The world’s first commercial wave farm became operational in 2008. While this facility will provide only a modest amount of electricity to the grid, Portugal has set an ambitious generation target of 550MW by 2020. Backed by significant government incentives, the wave energy sector in Portugal is poised to take off.

The solar sector also benefits from similar support.  The world’s largest photovoltaic solar power farm is currently being built in eastern Portugal.  The facility, capable of generating enough power for 30 000 homes, represents a play by the country to become a global leader in solar technology.

The following measures have been taken to stimulate the uptake of renewable energy sources:

• Fixed feed-in tariffs per kWh exist for PV, wave energy, small hydro, wind power, forest biomass, urban waste and biogas. For biomass, the average feed-in tariff in 2006 was €0.11/kWh
• Investment subsidies up to 40 per cent can be obtained.
• Tax reductions are available

In February 2008 the Portuguese government published a draft National Energy Efficiency Action Plan, Portugal Efficiency 2015. The Plan sets a target of reducing energy consumption by 10 per cent by 2015, and elaborates a series of 12 programmes establishing various targets to 2015 and measures to be taken across various sectors in order to achieve this goal.

Transport Sector targets and measures:

• Reduce by 20 per cent the number of light-goods vehicles over 10 years old.
• Reduce average CO2 emissions for new cars sold annually by 20 per cent (from 143 g/km in 2005 to 110g/km).
• Ensure that 20 per cent of the vehicle stock is equipped with monitoring equipment (on-board computer, GPS, cruise control, automatic verification of tyres).
• Establish an innovative platform for traffic management with GPS-optimised routes.
• Developing urban mobility plans for district capitals and corporate centres with over 500 workers.
• Transfer 5 per cent of individual transport modes to collective ones.
• Shift 20 per cent of international goods transported by road to maritime transport modes.
• The creation of a fleet of "green" taxis, with low greenhouse gas emission levels.

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 Residential and Services sectors targets and measures:

• Sustainable urban rehabilitation programme, with the aim of having one in every 15 households meet an optimal energy class (greater or equal to B-)
• Programme to replace 1 million large electric appliances (white goods), providing a EUR 50 bonus for the replacement with an A+ appliance and EUR 100 for an A++ appliance; old appliances must be handed over for recycling;
• Phase-out of incandescent light bulbs, large-scale substitution of incandescent light bulbs with CFLs (5 million)
• Simplified permits for efficient construction projects
• Stimulating small-scale electricity production so as to turn 75 thousand homes into electricity producers (installed capacity of 165 MW) by 2015;
• Having one in every 15 buildings equipped with solar hot water heaters.

Industry targets and measures:

• Voluntary agreement with manufacturing industry to reduce energy consumption by 8 per cent;
• Establishment of agreements with industry for the rational use of energy
• Creation of an Intensive Energy Consumption Management System, extended to medium-sized enterprises (with consumption over 500 toe), with fiscal incentives provided for identified energy management measures to be implemented.

Public sector targets and measures:

• Energy certification of all state buildings to be completed;
• 20 per cent of state buildings to fall within energy performance class greater than or equal to B;
• 20 per cent of the state vehicle fleet to produce CO2 emissions less than 110g/km;
• Phase-out of inefficient street lighting;
• 20 per cent of traffic lights to use efficient lighting (LED).
  

Information and communication measures:

• Launch of the "Energy Plus Bonus" to reward excellence in energy efficiency for companies, buildings, schools and others.
• "Energy Effiicency Plus" programme: an energy efficiency "seal of approval" to identify best practices for homes, public buildings, enterprises, schools and equipment.
• Information and communication campaigns to increase awareness and knowledge of energy efficiency and actions that can be taken, including training schemes, with a budget of up to EUR 2 million per year.
• Fiscal measures.
• Create a new taxation regime for vehicles and industrial fuels.
• Creation of an accelerated depreciation regime for investments in energy-efficienct equipment and vehicles in the industry and service sectors.
• Providing fiscal incentives for micro-production and progressively aligning the tax system with that of the energy certificates for buildings (for example fiscal benefits for class A/A+ level homes).

Financial measures and incentives:

•   Encouraging reduced electricity consumption - providing an incentive for major consumers to reduce consumption by providing bonuses to those who consume less, and establishing an Energy Efficiency Fund;
•   Efficiency cheque: Providing an "efficiency cheque" for two years, worth 10% or 20% of annual electricity costs to consumers with verified energy reductions of, respectively, 10% or 20% following investments in energy efficiency;
•   A reduction of 2.5% in the electricity tariff to those with lower energy consumption, and creating pricing schemes in favour of efficiency;
•   The creation of a subsidised low-interest personal line of credit, in the amount of EUR 250 million per year, for investments in energy efficiency measures, with an emphasis on urban rehabilitation. Interest rate reduction of 4% provided for creidt, up to 8% without guarantees;
•   Stimulating Energy Service Companies (ESCOs), by providing incentives for their establishment (QREN), calls for tender for public sector audits, and establishing regulations for an "efficiency contract".

As part of the Action Plan, in September 2008 the Portuguese government began distributing 5 free high-efficiency light bulbs to each of the poorest 13 per cent of households in the country.

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