Additional Grid-E Aspects

• Directorate-General for Energy and Geology (DGEG); 
• Energy Services Regulatory Authority (ERSE); 
• E-REDES / Energias de Portugal (EDP); 
• Redes Energéticas Nacionais (REN).

Portugal's electricity distribution is managed by several DSOs, each responsible for specific regions:

• E-REDES: The primary DSO, covering mainland Portugal;
• EDA: Serves Autonomous Region of the Azores;
• EEM: Operates in the Autonomous Region of Madeira.

These operators ensure the distribution of electricity across their respective territories. 

The transition to smart grids is a pivotal element of Portugal's energy strategy. The Energy Services Regulatory Authority (ERSE) has mandated that all low voltage consumers in mainland Portugal be integrated into smart grid infrastructures by the end of 2024. By the close of 2023, approximately 75% of standard low voltage installations had already been incorporated into the smart grid. This digital transformation enhances real-time monitoring, remote management, and the efficient integration of renewable energy sources. 

Smart meter penetration rate

The smart meter penetration in Portugal mainland is more than 70%. This rate in Madeira is 7,5% (100% in Porto Santo and 4,3% in Madeira). In Azores the smart meter penetration rate is 100 % for the MV consumers and 0% at LV level. However, in Azores all prosumers are equipped with bidirectional smart meters.

Policies on digitalisation of the electricity grid

In the islands, since there are no trader companies, there aren’t any aggregators.

Specific rules for islands, isolated grids, microgrids, local grids, etc.

In both Madeira and Azores archipelagos there are no electrical interconnections between the grid islands.

The liberalisation of Portugal's electricity market has fostered a competitive environment with multiple active suppliers. ERSE (Energy Services Regulatory Authority) publishes an annual report detailing the electricity and natural gas markets, which includes information on active suppliers and market dynamics. These reports provide insights into the number of suppliers, market shares, and the overall competitive landscape. 

ERSE (Energy Services Regulatory Authority) is responsible for establishing tariff methodologies that determine the pricing structures for electricity consumers. These methodologies are designed to reflect the actual costs of energy production, transmission, and distribution, while promoting efficiency and transparency. Tariff structures are periodically reviewed to align with market developments and policy objectives, ensuring fair pricing for consumers and sustainability of the energy system. 

Feed-in Tariffs (FiTs) and Solar Auctions: Initially, Portugal employed Feed-in Tariffs (FiTs) to encourage renewable energy generation. However, in recent years, the country shifted to competitive auctions to determine remuneration for new renewable energy projects.

• 2019 Solar Auction: This auction set a record with the lowest bid at €14.76/MWh, marking a significant milestone in Europe's renewable energy landscape;
• 2022 Floating Solar Auction: Portugal continued its innovative approach by awarding contracts for floating solar projects, including a notable 70 MW project at the Alqueva reservoir. 

Remuneration Schemes:

• Contract for Differences (CfD): Recent auctions have utilised the CfD model, providing a stable price framework for renewable energy producers over a set period;
• Contribution to the System (CtS): This scheme requires producers to pay the auction-determined price to the grid operator, with revenues based on the wholesale market price minus the strike price.

Microgrids and Island Communities:

• General Remuneration: Currently, there are no specific remuneration schemes tailored for microgrids or island-based renewable energy projects;
• Renewable Energy Communities: Portugal promotes the development of renewable energy communities to enhance local energy generation and consumption;
• Culatra Island Initiative: The "Culatra 2030" project aims to transform Culatra Island into a sustainable energy community, focusing on energy independence, waste management, and freshwater production. 

Portugal is committed to integrating renewable energy sources into its National Electrical System (SEN). The Multiannual Strategic and Financial Plan 2023-2027 outlines objectives to enhance the share of renewables in the energy mix, improve energy efficiency, and promote active consumer participation. This plan emphasises the development of smart grids, investment in energy storage solutions, and the facilitation of decentralised energy production, such as self-consumption and local energy communities. 

These initiatives collectively aim to ensure a sustainable, resilient, and consumer-centric energy system in Portugal.