14 DAY TRIAL // By the end of 2010, Portugal would have reached its goal of having 45% of renewable energy, goal that the country has set five years ago, when its green energy level was at “only” 17%.
In 1990, the year of the Kyoto treaty signed by Europe, Portugal had a simple agrarian economy, and since then, just like China, the Portuguese government restructured and privatized former public energy utilities to favor renewable power sources.
As it became clear that building cleaner energy was cheaper than dirty energy because of the price on carbon in Europe, the country has begun investing in greener power plants.
Today, Portugal occupies the first place in enabling the development of wave energy, along with Scotland, and this costs 260 euros per megawatt-hour for the first 20 MW installed.
The government is rather practical according to WaveRoller CEO John Liljelund, cited by Elizabeth Rosenthal at the NYT, as they say “Let’s do it: then we’ll see. This a problem; this is not.”
Manuel Pinho, Portugal’s minister of economy and innovation from 2005 until last year said that in the first year the pressure was enormous but “politicians must take tough decisions,” added the man behind the transition.
The new green energy is a bit more expensive than traditional one, as it will add 5% more than the US average electricity rate rise of 6% a year to ratepayers bills, but the initial investment should be absorbed within the first decade.
Since renewable energy is fuel-free, ongoing rates will be much lower after this period and so, within ten to fifteen years the nation's electricity rates should drop and remain at a low level.
The Portuguese wind industry and hydro power have become so big that besides supplying a whole country, it also exports wind farms to countries less developed in this domain like the USA.
The largest Portuguese energy company, Energias de Portugal, owns wind farms in Texas and Iowa through its US auxiliary Horizon Wind Energy, CleanTehnica.com reports.
The next goal for Portugal is to reach 60% of clean power supply by 2020 and it should be a piece of cake if we consider that this means an extra 15% over ten years, and they have already achieved 28% in only five.