Photovoltaic Energy Mini-generation. Future Perspectives for Portugal

Abstract

This paper evaluates the benefits of developing the mini-generation PV market in Portugal. It presents the legal framework and current status of the Portuguese PV electricity sector, and compares the country to other European nations: France, Germany, Greece, Italy, Spain and the United Kingdom. A model that combines PVGIS with a self-developed financial tool is used to assess the feasibility of a 150 kW mini-generation system using five different technologies: fixed mount, single-axis tracking, double-axis tracking, low concentration and medium concentration (MCPV). The profitability of the mini-generation systems in the seven countries studied is calculated and compared. According to this analysis, MCPV and, of the conventional technologies, the single-axis tracking systems are the most profitable technologies. Despite the attractiveness of the current Portuguese feed-in tariffs and of the abundant solar resource, investors are discouraged and the country’s PV market is far from mature. Specific mini-generation regulations should focus on a fast and transparent licensing procedure and should promote the access to financing. This would attract new investments, which would result in the growth of the PV electricity produced, and would help Portugal to meet its European Union Renewable Energy targets.