By Darius Munro news@algarveresident.com
Despite the cuts in subsidies, the EU-27s’ renewable energy output continues to grow as the share of energy from renewable sources in gross final energy consumption was boosted from 9.3% in 2006 to 12.5% in 2013, according to Eurostat.
Portugal is one of those at the forefront of this renewable revolution as it produced 72% of its electricity needs in June from renewable energy sources, according to REN (National Electrical Network).
Hydroelectric power in particular saw a 312% increase from last year’s figures. Additionally, in line with this increase in renewable energy, there was a marked decrease of 29% in electricity generated from coal and 44% for gas.
However, despite Europe’s positive trend, some are pessimistic about it reaching its goal of raising the share of renewable energy to 20% by 2020 as they fear the 20-year long growth will be stagnated by cuts.
Ian Temperton of Climate Change Capital claims that a peak in renewable energy installation rates has happened as is evidenced by the 24% fall in solar power installations in 2012, according to the European Photovoltaic Industry Association.
The immediate cause for this was most probably the decreased subsidies fuelled by Portugal’s austerity measures.
Nonetheless, a further explanation, which could present itself as a long-term issue, was the expense to the consumer. Joseph Romm, fellow at the Energy Collective, wrote that “some locals complained about higher utility bills” and considering the effects of the recession, higher costs is not something the Portuguese public are willing to endure.
Despite this, Romm is more optimistic about the future than Temperton as he believes that the development in Portugal has provided a strong base for growth when the economy picks up again.
Also, even though the government cut subsidies for small-scale solar energy producers by 30%, the European Investment Bank is providing a €72.5 million loan to Electricidade dos Açores S.A. to support the company’s renewable energy investments. The investment is expected to help update and maintain transmission grids and power stations.
Additionally, although the recession has resulted in cuts towards renewable energy subsidies, it has partially mitigated this by resulting in a stagnation and now decline in total energy consumption and demand in Portugal.
Furthermore, the renewable energy surge has helped the environment through a decreased output from coal stations and gas-fired power stations, which should lead to a substantial reduction in CO2 emissions.
In fact Portugal’s CO2 intensity rate is so low that it is in the bottom 10 of countries in the world and top 10 in renewable electricity production.
