NRP Portugal

Driver5.EnergyEnergypolicyisincreasinglybecomingadriverforeconomicgrowth,especiallythankstoitscapacityforgeneratingnewinvestmentinprojectswithhightechnologyinputandforcreatingjobs.The Government has adopted an ambitious energy policy, set out in the National Energy Strategy(Resolutions of the Council of Ministers, October 2005), establishing three main objectives for thesector:- Encouragingcompetition;- Guaranteeingenvironmentalcompatibilityforthewholeenergyprocess;- Guaranteeingthesafetyofenergysupply.TheGovernmenthasbeentakingastronglyproactivepolicyintheareaofrenewableenergies.Hence,initssustainabilityframework,in2007itdefinednewcommitmentsfor2010inpromotingrenewableenergysources,reinforcingthemeasuresalreadyestablished.ENCOURAGINGCOMPETITIONTheGovernmentestablishedacentralobjectiveofstimulatingtheenergysector,creatingliberalisedand competitive markets. The reorganisation of the whole legal and regulatory framework, with thepublication of framework laws and complementary legislation for electricity, natural gas andpetroleum,wasthefirstconcretestepinimplementingthisstrategy.Withregardtotheliberalisationofthemarkets,themeasuresadoptedintheelectricitymarketgaveallconsumers effective right of choice, as from 4 September 2006, placing Portugal among the EUcountries that have achieved total liberalisation in this market. In the natural gas market, theGovernmenthasforestalledthepreviouslyagreeddatesforderogation,bringingforwardbytwoyearstheliberalisationperiodfordomesticconsumersandbyoneyearforindustrialconsumers.The defined policy also included the creation of two large competing operators in the gas andelectricity sector: EDP – Energias de Portugal, S.A., entered the natural gas business forming thecompanyEDPGás,SGPS;andGalpEnergia,SGPS,S.A.,whichwasalreadyactiveintheexplorationandproduction, refining and distribution of petroleum products, in the areas of supplying, selling anddistributingnaturalgasandproducingelectricalenergyforlargeindustrialclients.To allow for equitable and transparent network access, the Government created a single gas andelectricitytransportationoperator.Inthiscontext,inSeptember2006,REN–RedeEléctricaNacional,S.A.acquiredthegastransportationassetsownedbyTransgás.Anewholdingcompanywascreatedtomeetthisnewmission–RedesEnergéticasNacionais,SGPS,whichmanagesthenationalelectricityandgastransportationsystemthroughthefollowingcompanies:‐ RENGasodutos,S.A.,‐RENArmazenagem,S.A.;‐ RENAtlânticoTerminaldeGNL,S.A.;‐ REN‐RedeEléctricaNacional,S.A.ThismeasureplacedPortugalamongthefiveEuropeancountrieswithtotalunbundlingofthetransportnetworksandamongthethreewhohavetheseassetsinthesamecompanystructure.Themainmeasurestoencouragecompetitioninthesupplymarketswere:‐ early termination of the Power Purchase Agreements, thus freeing up around 80%(approximately7.100MW)ofallproductionpreviouslypledged;‐ thegrantingoflicencesforbuildingnewCombinedcyclegasturbineplants(CCGTs);‐ earlyliberalisationofthenaturalgassupplymarket.TheGovernmentalsomadetheIberianElectricityMarketareality.ItbeganoperatinginJuly2006,withthestartofOMIPtransactions.TheIberianElectricityMarketisthesecondintegratedregionalmarketimplementedinEurope,witharound30millionconsumers.45