Photovoltaic Self-consumption
Investing in Photovoltaic Self-consumption is a smart decision, not only from an environmental point of view but also from an energy and economic point of view.
Firstly, because in terms of solar energy, Portugal is one of the European countries with the highest solar radiation.
Secondly, because the costs of photovoltaic (PV) systems have dropped significantly in the last years due to technological advances and Solar PV Economies of Scale.
So taking advantage of the available natural resources is absolutely necessary for us to become less dependent. Afterwards, our energy dependence on fossil fuels has a negative impact in the family economy and in the economy of the country.
By SolarGIS © 2011 GeoModel Solar s.r.o., CC BY-SA 3.0, Link
Solar potential in Europe and in Portugal.
Production Units for Self-consumption (UPAC)
Individuals and companies can produce their own electricity safely and reliably with a Photovoltaic System for self-consumption.
Photovoltaic self-consumption refers to the production of electricity for own consumption, through solar photovoltaic systems.
Photovoltaic systems for self-consumption can be classified as off-grid / autonomous systems and grid connected systems.
An off-grid photovoltaic system refers to an installation that is not connected to the public electrical grid. This means that the surplus solar energy generated must be stored in batteries to ensure access to electricity when needed.
A grid connected photovoltaic system for self-consumption is an installation that is connected to the public electrical grid. Generally in these systems the solar energy generated is directly consumed and the surplus electricity can be sold to the utility network.
In Portugal these systems are called Production Units for Self-consumption (UPAC).
UPAC is an electricity production installation, based on renewable energy sources like solar energy, intended for self-consumption. With one or more UPACs connected to one or more Consumption Units the self-consumer has the right to produce electricity for self-consumption. The self-consumer has also the right to store and trade the surplus electricity production.
What are the legal framework for the activity of electricity production for self-consumption?
In Portugal the Production Units for Self-Consumption (UPAC) are regulated by Decree-Law No. 162/2019. This decree-law establishes the legal scheme applicable to self-consumption of renewable energy.
Before this decree-law enters into force, only individual self-consumption was allowed. Now, self-consumers are allowed to group together, and the same unit of energy production may have several self-consumers (collective self-consumption).
Now it is also allowed that self-consumers and other participants in renewable energy projects constitute legal entities (the Energy Communities) for the production, consumption, sharing, storage and sale of renewable energy.
Who can carry out the activity of electricity production for self-consumption?
The self-consumption activity through a Production Unit for Self-Consumption (UPAC), regardless of the voltage level of the consumption facilities, can be:
- Individual – When a final consumer produces electricity from renewable sources for their own consumption, in their facilities, being able to store or sell it. In the case of non-domestic self-consumers, this activity can not constitute their main commercial activity.
- Collective – Through condominiums of buildings; Through a group of self-consumers located in the same building or area of apartments or villas, in a close neighbourhood; and through industrial, commercial, agricultural units, or other infrastructures located in a delimited area, which have UPACs.
- And can be carried out by Renewable Energy Communities (CER), which are legal persons constituted by individuals or legal persons, of public or private nature, including small and medium-sized companies or local authorities, in accordance with Decree-Law No. 162/2019.
What are the conditions of access and exercise of activity?
In accordance with the legislation in force:
- UPACs with installed power equal to or less than 700 W are not subject to prior control.
- The UPAC with installed power greater than 700 W and equal to or less than 30 kW is subject to mere prior communication.
- UPACs with installed capacity greater than 30 kW and equal to or less than 1 MW are subject to prior registration for the installation of the UPAC and an operating certificate.
- UPACs with an installed capacity of more than 1 MW are subject to a production and operating license.
Can the surplus energy from the Photovoltaic Self-consumption be traded?
The surplus energy from self-consumption can be traded directly in an organized market or through a bilateral contract, through an Aggregator or through the Market Facilitator.
However, Market Facilitator activity has not yet been implemented since the entity that will perform this function has not yet been chosen. Because of that ERSE – Energy Services Regulatory Authority, to ensure the purchase of electric energy produced by the small special regime electricity producers (with power up to 1 MW), temporarily assigned this obligation to the last resort supplier (CUR) SU Eletricidade.
For more information read Instrução n.º 3/2020.
What is the maximum power that the Photovoltaic Self-consumption can feed into the power grid?
For security reasons the feed-in power of the UPAC must not exceed the certified power of the consumption unit.
In addition, the power supply to the consumption unit must not exceed the contracted power or the required power.
In accordance with Decree-Law no. 162/2019, the UPAC must be sized to ensure the closest possible approximation of the electrical energy produced to the amount of electrical energy consumed in the consumption unit.
In conclusion, the UPAC is primarily intended to cover the own electricity consumption and may be owned or managed by third parties.
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