In recent months In recent months, demand for electricity in the Portuguese market has increased due to high temperatures and renewable electricity, mainly generated from wind and solar energy, which has not been sufficient to meet consumption levels. To meet demand, gas was needed to gas gas turbine combined cycle plants throughout the Iberian Peninsula, which sharply triggered the price of electricity.
This is mainly due to the increase in the price of natural gas, and in another, also revealing portion, of the associated carbontax, which already exceeds EUR 50 per tonne.
The trend is for price increases to continue. On the other hand, the cost and price of electricity associated with the production of CO2 emissions are higher from a financial and environmental point of view, and so it is crucial to continue to intensify the focus on renewables, in line with the provisions of the Roadmap for Carbon Neutrality, which Portugal proposes to achieve in 2050.
The price of electricity comes from costs related to the production and sale of electricity, transport and distribution networks, and the commercialization of electricity. The impact of renewable sources positively influences the market price of electricity traded on the Iberian Market due to its low marginal cost, contributing to keeping prices low in the wholesale electricity market and, consequently, reducing the electricity bill of citizens. Between 2016 and 2020, renewables allowed a cumulative savings of EUR 6.1 billion.
In this way, collective self-consumption and renewable energy communities (REC) are enabling a greater stabilization of energy prices in the wholesale electricity market, and it is an excellent opportunity to counter act on fluctuations in electricity prices on the market.
REC and the collective self-consumption are allowing the democratization of energy, enabling self-consumption as well as the sale of thesurplus energy produced fromthe proximity perspective. As the name implies, the community allows the establishment of an agreement between consumers who are "close to the producers who sells the surplus energy produced. RECs promote a better public acceptance of renewable energy projects, as they create opportunities and benefits for participants by promoting increasing energy efficiency in homes, and, consequently, reducing the electricity bill by reducing direct consumption of the public service electricity network (RESP).
RECs have completely altered the energy sector, thus corresponding to another safe and cost-effective renewable electricity supply solution, in addition to inserting the possibility of ensuring and providing flexibility services, essential to the new paradigm of integrated energy system. Through flexible load management and control of generation and storage units, REC's can offer flexibility value, allowing their load or generation profiles to be purposely changed to offer system services. Demand-side flexibility-related activities complement the benefits of RECs and increase their economic potential for members, while also contributing to increased resilience of the energy system.