Pricing the Energy Supplied by Renewable Sources: An Assessment of the Portuguese Situation

  • Rui M. G. Castro
  • J. P. Sucena Paiva


This paper is concerned with the independent production of electrical power based on renewable sources. Recently, new legislation has been published with the aim of creating the conditions for the renewables to become a more significant component of the generation mix. One of the main tools to enforce the increase in the penetration of renewable sources is the establishment of the so called “green tariffs”, that incorporate the environmental benefits provided by those producers. The paper is composed by three main parts. Firstly, some details concerning the Portuguese electrical system are given, including an assessment of the novel legislative framework. Then, a description of the new methodology used to compute the energy prices paid by the public system to the producers that convert renewable sources, is made. Finally, a case-study composed by three renewable installations is presented; some results concerning the processing of available data are shown, namely an estimation of the average energy selling prices from renewable producers to the public grid and the percentage distribution of the different parcels that compose the average prices.


Renewable energy dispersed generation energy pricing green tariffs 


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  1. 1.
    Castro R.M.G., Ferreira de Jesus J.M., Sucena Paiva J.P. On the Pricing of Dispersed Power Generation. Proc. SEV-ETH-IEE Conference on Electrical Power Systems Operation and Management — EPSOM’98, Zurich, Sep. 1998.Google Scholar
  2. 2.
    Castro R.M.G., Sucena Paiva J.P. Evaluation of the Cost of the Energy Supplied by Renewable Sources (in Portuguese). Final report under a contract between IST and ERSE (National Regulatory Authority), Feb. 2000.Google Scholar
  3. 3.
    European Commission, “Energy for the Future: Renewable Sources of Energy, White Paper for a Community Strategy and Action Plan”, COM(97)599 final, Nov. 1997.Google Scholar

Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Rui M. G. Castro
    • 1
  • J. P. Sucena Paiva
    • 2
  1. 1.Instituto Superior TécnicoTechnical University of LisbonLisbonPortugal
  2. 2.CEEL - Centro de Energia Eléctrica (Energy and Power Systems Centre)LisbonPortugal

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