Small production units: Does law impair generation and financial viability?

Laura Mariana Brito Silva

Key information

Authors:

Laura Mariana Brito Silva (Laura Mariana Brito Silva)

Supervisors:

João Paulo Neto Torres (João Paulo Neto Torres); Carlos Alberto Ferreira Fernandes (Carlos Alberto Ferreira Fernandes)

Published in

October 6, 2020

Abstract

Portuguese law considers two generation profiles for renewable energy: Small production units, Unidade de pequena produção (UPP) and Self consumption units, Unidades de produção para auto-consumo (UPAC). For UPPs connection power is limited by the contracted power. Oftentimes contacted power is lower than the generation potential in the property, therefore some concerns are raised about the power and financial viability of UPP projects. This work focus on the financial and power viability of UPP projects designed according to the current law versus the projects developed to take advantage of the available solar power. To study this, three solar systems are designed with the help of Building Information Modelling software, laboratory tests and satellite images. Two of these projects are designed with the intent of maximising generation while still being conceivable: one using solar glass and the other is designed to replace the carport cover on the property. The third project is designed according to legal power limitations. It's observed that the project that uses solar glass has a Net present value, Valor atual l´ıquido (NPV), meaning it is not viable. The other two projects have a positive NPV. Project three has lower initial investment and a smaller payback period. The difference in generated power is not significant. Hence, one can conclude that Portuguese law does not impair the UPP energy and financial viability.