CMS Expert Guide to Agrivoltaics and Floating Photovoltaics in Portugal

Agrivoltaics are regulated by Decree-Law no. 15/2022, of 14 January as amended (“DL 15/2022”) only as an innovation and development project (“I&D”). This means that agrivoltaic projects are primarily developed in Portugal to investigate, demonstrate, and test new technologies, products, services, processes, and innovative models in a real environment. This regulatory approach is intended to gather experience and data in order to prepare future regulatory adjustments to fully integrate agrivoltaics into the energy regulatory framework. 

Yes, there are pilot agrivoltaic projects being developed in Portugal. 

In addition, DL 15/2022 establishes the creation of a free-technological zone (“ZLT” – Zona Livre Tecnológica) for the development of an agrivoltaic project in Perímetro de Rega do Mira (located in the south of Portugal). The ZLT aims to promote and facilitate the implementation of research, demonstration and testing activities related to innovative models and technologies in the field of energy production and agriculture. 

Moreover, several agrivoltaic projects are currently being developed by Portuguese universities (namely, the Institute of Agronomy, University of Évora and Faculty of Sciences of the University of Lisbon) and some players, demonstrating the country's commitment to promote renewable energy and sustainable agricultural practices. 

The main hurdle, as mentioned above, is that agrivoltaic projects can currently only be developed as I&D projects, which limits their commercial purposes.  The implementation of an I&D on the Mira ZLT depends on the approval of an Order to be published by the members of the government responsible for the areas of energy and agriculture and following a proposal from several entities (e.g. licensing entity, grid network operators). 

The potential is significant due to the country's favourable climate and the extension of agriculture areas which might be compatible with PV projects. 

Currently, there are no specific financial support programmes in Portugal dedicated exclusively to agrivoltaics but only to innovative renewable energy projects. 

Yes, FPV are regulated, and their licensing is governed by Decree-Law no. 15/2022 of 14 January as amended (“DL 15/2022”). 

In 2021, the Portuguese government promoted a competitive procedure, in the form of an electronic auction, for the allocation of grid injection capacity adjacent to some important hydroelectric plants (e.g. Alqueva, Castelo do Bode, Cabril, Salamonde) and also published the Decree-Law no. 98/2021 of 16 November which unifies the procedures for allocation of grid injection capacity and the titles for the private use of hydric public domain. 

Portugal has been a pioneer in the implementation of  FPV projects, integrating solar energy with existing hydroelectric infrastructure to enhance renewable energy production. The Alqueva floating solar project is currently the largest floating solar project in Europe on a reservoir. The FPV projects related to the competitive procedure launched in 2021 by the Portuguese government are still undergoing and being developed. 

The main challenges are the limited availability of grid injection capacity and also some municipal objections and environmental constraints. In addition, there are several restrictions related to the permitted uses within the dam’s reservoir which may limit the full implementation and may impair the commercial use of the project and its financial viability. 

Portugal has a promising potential for FPV projects, due to its extensive network of water reservoirs and highly favourable solar conditions. The country’s hydroelectric infrastructure provides optimal conditions for the deployment of hybrid hydro-solar systems, thereby increasing energy diversification and efficiency. 

Currently, there are no specific financial support programmes in Portugal dedicated exclusively to FPV. Also, there is currently no public intention to launch a competitive procedure (similar to the 2021 competitive procedure) due to the shortage of grid injection capacity.