New Portuguese law on the electricity system in public consultation – Energy and natural resources
Portugal: New Portuguese law on the electricity system in public consultation
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The Portuguese government wants to leave its mark on the sector with a new regulatory framework for the National Electric System (NES), which has been in public consultation since November 10 and until November 24. Here is a list of the main points of the draft regulation to be submitted to the Portuguese Parliament by the end of November.
Due diligence of NES activities and network planning
The differentiation between the generation of ordinary regime (ORG) and the generation of special regime (SRG) and the various authorization procedures for the activity of electricity production will be abolished.
The activities of production, self-consumption and storage will be covered by a single system of prior control which may take the form of prior notification, prior registration and an operating certificate, or an authorization. production and operation.
The draft decree-law makes new investments in network infrastructure conditional on an analysis of the costs and benefits compared to other alternatives, such as storage.
Tender mechanisms for the exercise of NES activities
The allocation of licenses (i) Supplier of last resort, (ii) Aggregator of last resort, (iii) issuer of guarantees of origin and (iv) Logistics operator for the change of supplier and aggregator will be subject to ‘a prior call for tenders procedure.
The draft decree-law creates a new market agent: the integrated manager of the high-voltage, medium-voltage and low-voltage distribution networks, who will exercise the activity within the framework of a concession regime, awarded after a call for tenders. prior public offer.
Electricity production and storage activities will be remunerated exclusively at market price or through bilateral contracts, eliminating once and for all the guaranteed remuneration scheme. This notwithstanding the possibility of granting by public tender specific support schemes for production from renewable energies.
Active participation of consumers in electricity generation and markets
Passive consumers become active agents producing electricity for self-consumption or for the sale of surpluses and storage with:
- The installation of smart grid infrastructures, which include systems and technologies for communication and processing of energy data and smart meters;
- Participation of consumers in electricity markets through the creation of the aggregator;
- New schemes for collective self-consumption and energy sharing through the establishment of energy communities.
The obligations of suppliers have been strengthened since they must offer electricity contracts at dynamic prices when they have more than 200,000 customers, provided that the respective consumption facilities have a smart meter.
If the customer has a smart meter, the supplier is now also required to include in the bill a breakdown of the average energy consumption by day of the week and time of day.
If the consumer has a smart meter, he has the right, on request, to access the actual consumption of electricity and the actual period of use, and this data must be easily accessible and free. The consumer also has the right to additional information relating to consumption history and detailed data regarding periods of use.
The draft decree-law also provides for a regime of misappropriation of energy.
New realities: re-equipment, hybrids or hybridization, and storage
Three Technological Free Zones (ZLT) are planned to facilitate development in new realities:
- The first intended for pilot projects of research and development within the framework of the production of electricity at sea, from renewable energies of source or oceanic location;
- The second will be developed as part of the dismantling process of the Pego coal-fired thermoelectric power station; and
- The last, located in the Perímetro de Rega do Mira, intended for the establishment of innovation and development projects within the framework of the compatibility of land use for agricultural activities and electricity production.
The project also provides that the re-equipment of a solar or wind power plant will not be subject to the environmental impact assessment procedure. In addition, when the power plant is completely re-equipped, the connection power is increased up to a maximum of 20% of the connection power initially allocated, subject to a simple prior checking procedure involving a simple modification of the production permit. or prior notification only.
The first challenge of the market was posed: to respond within 15 days to such a vast project to modify the legal framework of the Portuguese electricity system.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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