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EDP Distribuição Energia, S.A.

EDP Distribuição Energia, S.A. Internalisation of Environmental Benefits Concerning Dispersed Generation in the Portuguese Legislation António Brito Luis Neves. Introduction.

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EDP Distribuição Energia, S.A.

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  1. EDP Distribuição Energia, S.A. Internalisation of Environmental Benefits Concerning Dispersed Generation in the Portuguese Legislation António Brito Luis Neves

  2. Introduction • The 1973 oil crisis lead to a global change of the European energy politics in an attempt to reduce external dependence. Some priorities were defined: • Diversify the oil supply; • Promote the saving and the rational use of energy; • Develop the internal sources of energy.

  3. Renewable Energy Sources • Renewable energy sources achieved greater importance, as a main contribution to the global security in terms of energy supply Some priorities were defined: • Research; • Development of new technologies; • Legal context.

  4. Legal Context • Technical definition of the plants connection to the grid; • Remuneration process assured; • Obligation of purchasing the energy emitted to the grid; • Support to the investment.

  5. Legal Context • Decree-Law nº 168 / 99 - Renewable Energies • Use of “green tariff” concept; • Remuneration process that internalises: • environmental benefits; • reduction of costs in the Public Electric System; • Inflation correction by means of the monthly index of consumers price.

  6. Legal Context • Decree-Law nº 538/99 - Cogeneration • Internalisation of environmental benefits; • Remuneration of the reduction of costs and losses in the grid; • Remuneration related to the dollar and the oil price; • Introduction of the equivalent electric efficiency concept. • environmental benefits; • reduction of costs in the Public Electric System; • Inflaction correction by means of the monthly index of consumers price.

  7. Percentile distribution of production under a special regime in 2002 (Portugal)

  8. Weight of production under a special regime (PSR) in terms of the total energy flow in the grid - 2002 (Portugal)

  9. 5,9 10,6 1,852 74,4 2,46 1,34 14,01 15,7 14,4 4,8 10,4 Small Hidro Energy emitted in 2002 706 GWh 0,608 66,9 7,02 62,2 2,1 14,2 4,4 1,6 13 9,24 0,7 15,5 35,5 0,3 9,3 2,4 0,6 9,1 55,8 26,09 21,3 7,5 10,04 0,07 0,25 5,95 10,3 11.8 0,65 12,23 3,66 2,7 0,627 0,48 0,731 0,072

  10. 0,018 20,3 Cogeneration Energy emitted in 2002 1 160 GWh 39,7 279,8 24,6 86,8 57,4 22,6 38,3 62 26.9 4,44 29,8 19 10,7 51,4 0,8 10,6 1,2 18,2 22,66 3,2 7,242 11,2 2,57 6,09 0,34 5,4 0,278 16,5 18,678 10,2 12,4 16,4 24,44 33,5 5,7 5,4 1,6 35,9 15,6 26 16,24 4,44 74,4 0,006 44,8

  11. 13,365 Eolic Energy emitted in 2002 340 GWh 0,9 29,6 11 52,8 53 17,96 5,96 1,61 9,1 3 45 72 2,6 18,8

  12. Biomass Energy emitted in 2002 38 GWh 53 5,925

  13. Biogas Energy emitted in 2002 0,01 GWh 0,011 0,0227 0,006

  14. Remuneration process for renewable energies • The remuneration is based on the avoided costs: • Fixed Remuneration (PF) - represents the avoided investment costs; • Variable Remuneration (PV) - represents the avoided operation costs; • Environment Remuneration (PA) - valorises the avoided CO2 emissions.

  15. Remuneration process for renewable energies • In the remuneration process the following parameters are still considered: • LEV - represents the losses prevented in the nets; • KMHO - depends on the diagram of energy production; • Correction according to the inflation.

  16. Wind Plants Environment Remuneration

  17. Remuneration process for cogeneration • Fixed Remuneration (PF) - which is proportional to the power emitted to the net; • Variable Remuneration (PV) - which is proportional to the energy emitted; represents the avoided operation costs; • Environment Remuneration (PA) - which is also proportional to the energy emitted; valorises the avoided CO2 emissions.

  18. Remuneration process for cogeneration • In the remuneration process the following parameters are still considered: • LEV - represents the losses prevented in the nets; • KMHO - depends on the diagram of energy production; • Correction according to the inflation, the relation between Euro/Dollar and the price of oil.

  19. Cogeneration Environment Remuneration Environment Remuneration

  20. Future Perspectives • Reduction of the obstacles that can prevent the increase of electricity by means of renewable sources of energy; • Simplification of administrative procedures; • Establishment of objective rules; • Easy access to the grid, maintainingthe reliability and safety of the electric system. • Introduction of the “green certificates” mechanism.

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