Business

Agrivoltaics Tender Launched By Portuguese Government

Anu Bhambhani
  • Portugal has invited applications for solar power projects to be installed on agricultural land
  • Projects can be installed on rooftops, ponds, wells, water tanks, etc., and applications will be accepted till July 14, 2021
  • Local media reports say the country's 3rd solar auction will be held in September 2021, comprising 500 MW floating solar capacity

The Portuguese Ministry of Agriculture has sought applications for solar power projects on agricultural land under its Small Investments in Agricultural Exploration scheme. Total budget allocation for the scheme is €10 million ($12 million).

Under the tender launched, the ministry will accept applications that seek financial assistance for the installation of solar panels on agricultural land. Selection will be made basis some conditions the projects will be expected to fulfil. Some of these include projects that improve the farmers living, working and production conditions, contribute to the modernization and increasing energy sustainability of the farms, and contribute to decarbonization of the sector by reducing the use of fossil fuels in agricultural practices, especially irrigation.

A single bidder can submit only one application under the country's Rural Development Program or PDR 2020. Applications will be scored on the basis of some terms, for instance for an off-grid location, grid-connected investment site, and a site where energy is consumed both from grid connected electricity and self-generation facility.

Solar panels can be installed on rooftops, on ponds, wells, water tanks and the like.

Financial support will be provided in the form of a non-refundable subsidy and determined by the product of the unit cost by the power of the panels to be purchased.

The application round was launched on May 13, 2021, and submissions will be accepted till July 14, 2021. On the Portuguese government's tender website, details about the tender are available under Codigo de Aviso or tender code PDR20-V1-2021-04.

Floating solar tender

Portugal is also planning to launch a new solar auction for up to 500 MW floating solar power capacity. Speaking to local media, the Minister of Environment and Climate Action João Pedro Matos Fernandes recently said the country's 3rd solar auction to be held in September 2021 will focus on floating solar installations on reservoirs.

Fernandes said of the 60 reservoirs in the country, there are 17 it believes hosts conditions fit for floating solar projects, including in Alentejo. Further 10 locations are being evaluated, and the results should be known by August 2021.

The 1st solar auction of Portugal attracted €0.01476 per kWh as the lowest winning bid from Akuo Energy of France, followed by the 2nd solar auction bringing in even lower €0.01114 per kWh as the winning bid (see Portugal Officially Confirms World's Lowest Solar Bid).