Rights and obligations of customers and prosumers
The general rights and obligations of consumers and prosumers are defined in Decree-Law 15/2022, from January 2022, that establishes the organisation and functioning of the Portuguese electric power system, such as self-consumption and energy-sharing arrangements, including for renewable energy communities (RECs).
Rights and obligations of plant operators
Plant operators, encompassing electricity producers and storage facility managers, are integral to the National Electrical System (NES) in Portugal. Their rights and obligations are outlined in Decree-Law No. 15/2022, of 14 January. Key responsibilities include:
- Grid Connection: Operators have the right to connect their facilities to the public electricity network, provided they meet technical and regulatory standards. They must coordinate with the relevant DSO or Transmission System Operator (TSO) to establish the necessary infrastructure;
- Data Provision: Operators are obligated to supply accurate and timely data on electricity production and, if applicable, storage activities. This information supports grid management and ensures the reliability of the electricity supply;
- Compliance with Technical Standards: Operators must adhere to established technical standards and regulations to maintain grid stability and safety. This includes compliance with the Network Operation Code (ROR), which outlines conditions for managing electricity flows and ensuring real-time balance between demand and generation;
- Participation in System Services: Operators may be required to participate in system services, such as providing flexibility resources or balancing services, to support the overall efficiency and reliability of the NES.
Metering and Reporting
The Portuguese Energy Services Regulatory Authority (ERSE) has implemented a Smart Grid Services Code (RSRI) to enhance the efficiency and transparency of electricity distribution. This code mandates the installation of smart meters for all low voltage customers in mainland Portugal by the end of 2024. These smart meters facilitate:
- Daily Remote Meter Reading: Providing detailed 15-minute interval data on consumption and generation, accessible through an electronic platform.
- Accurate Billing: Ensuring bills are based on actual consumption, eliminating the need for estimates.
- Local Meter Access: Allowing customers to access near real-time data directly from their meters.
- Remote Service Management: Enabling remote adjustments to contracted power and other services without on-site visits, with reduced scheduling times.
- Consumption Alerts: Providing notifications regarding consumption levels and usage relative to contracted power.
Tasks of the DSO/TSO
There are several other regulations and norms that define the roles and tasks of the TSO and DSO. These regulations have been defined by the Portuguese Regulator ERSE and are:
- Regulamento de Operação das Redes (Manual of Operations of Grids);
- Manual de Procedimentos da Gestão Global do Sistema (Manual of Procedures for the global management of the System)
DSOs and TSOs handle operational, reliability, and efficiency standards per ERSE’s regulations, such as the Manual of Grid Operations and the Global System Management Procedures.
The TSO REN is the network operator of the transmission grid. It is responsible for planning, construction, and management of the transmission grid and interconnections under appropriate reliability conditions. It is also responsible for monitoring the security of supply.
The DSO E-Redes is the network operator of the LV, MV, and HV distribution grids. It is responsible for planning, construction, and management under appropriate efficiency and reliability conditions.
Role of the National Regulatory Agency (NRA)
The Regulator – ERSE – is an independent entity with competences to organize regulations on Access to the grids, Commercial relations, Tariffs, Quality of Service, Approval of investment plans on the grids. ERSE activities are extended to the electrical grids of the islands of Madeira and Azores.
Priority for RES and curtailment
Renewable energy has priority access, with low curtailment rates thanks to flexible balancing, although fixed-price solar contracts may still be curtailed when necessary. Priority to renewable energy RESP (Public Service Electricity Grid) operators must give priority to electricity from power generation centres that use renewable energy sources, except for hydroelectric plants with an installed capacity of more than 30 MW (art. 17 of DL 76/2019).
Thanks to its integration of renewable sources in the balancing market (especially wind power) and the flexibility and availability of other sources, Portugal has quite low curtailment rates. Solar operators who sell energy at a fixed price under the terms of a tender may be subject to curtailment without additional compensation.
Grid use/management rules on islands
In the islands of Madeira and Azores, the Internal Electricity Market Directive does not apply, which means that there is only a single company taking care of the activities of generation, transmission, distribution and commercialisation of electricity. In Madeira, EEM (Empresa de Electricidade da Madeira) is 100% owned by the Regional Government of Madeira, and in the Azores, EDA (Electricidade dos Açores) is 51% owned by the Regional Government of the Azores. However, renewable generation activity can be pursued by independent private companies in both Regions.