In response to the Portuguese government's ambitious target of 8.1 GW to 9.9 GW in installed solar capacity by 2030, the European Solar Select Fund (ESSF) embarked on identifying promising solar projects. One such project is a 200 MW ground mount solar/photovoltaic (PV) project located in Southern Portugal, renowned for its high sunlight yield.
Southern Portugal boasts an exceptional climate, with approximately 3,000 hours of sunlight per year, surpassing most of Europe. This region's abundant sunshine optimises energy yield output from photovoltaic panels. Clear skies and low air pollution create an ideal environment for the solar panels, minimising the risk of blockages and ensuring uninterrupted energy generation. The demand for renewable energy is on the rise, further enhancing the attractiveness of Southern Portugal for investors seeking to develop solar PV projects.
The identified ground mount solar/PV project in Southern Portugal has a projected output exceeding 408,000 MWh per annum. With an impressive capacity of 200 MW, it aligns perfectly with the ESSF's investment strategy. The project holds immense potential to contribute significantly to Portugal's solar energy production and help meet the country's renewable energy goals.
Southern Portugal receives approximately 3,000 hours of sunlight per year, surpassing most of Europe.
The identified ground mountsolar/PV project in Southern Portugal is projected to have an annual outputexceeding 408,000 MWh.
Renewables currently account for around 50% of Portugal's total generation capacity.
Wholesale electricity prices in Portugal peaked at €283 MWh in March 2022 before stabilising around €143 MWh.
The Portuguese government aims to achieve 8.1 GW to 9.9 GW in installed solar capacity by 2030.
Portugal's total energy consumption stands at approximately 46.9 TWh.
The Portuguese government's Acordo scheme has been instrumental in facilitating the production of solar projects and accelerating their development. While an Acordo license grants solar producers the opportunity to sell capacity into the grid, it does not automatically provide other essential permits, such as DIA/environmental study licenses, construction licenses, municipality sign-offs, or central grid connections. However, the political impetus to fast-track solar projects throughout the country creates favourable conditions for ESSF's project development in Southern Portugal.
The energy market in Portugal has experienced notable price fluctuations due to the ongoing Ukraine crisis, with wholesale electricity prices peaking at €283 MWh in March 2022 before stabilising around €143 MWh. The country's total consumption stands at approximately 46.9 TWh, with renewables contributing to around 50% of the total generation capacity. Southern Portugal's solar potential positions it as a valuable asset in meeting the increasing demand for renewable energy.
The identified 200 MW ground mount solar/PV project in Southern Portugal represents an excellent investment opportunity for ESSF. With its abundant sunlight, optimal environmental conditions, and growing demand for renewable energy, this project aligns perfectly with ESSF's objectives. By capitalising on the region's solar potential and leveraging the Acordo scheme, ESSF aims to contribute to Portugal's ambitious solar energy goals while generating attractive returns for its investors.
