A Practical Review of the Public Policies Used to Promote the Implementation of PV Technology in Smart Grids: The Case of Portugal

Abstract

Every country has objectives for climate change, and public policies are implemented to achieve those commitments. This paper aims to review the different public policies used to promote the integration of photovoltaic technology into smart grids, taking the case of Portugal as reference. An analysis of previous supporting policies is performed both in Portugal and some European countries; these policies consist of feed-in tariffs, feed-in premiums, green certificates, electricity compensation, direct capital subsidies, and tax credits. The policies currently in force in Portugal no longer aim to support the technology; instead, they intend to promote it. Energy communities, local markets, and solar auctions are examples of public policies that are currently being used, not only to promote PV power but also the development of microgrids. Finally, the Portuguese solar auctions of 2019 and 2020 are analyzed and compared. It is concluded that auctions are a very effective way of expanding the installed capacity of the PV technology in the country and have more weight on promoting the technology than other promoting policies currently being used.