an verview f the prtuguese eletriity market：葡萄牙电力市场概要.pdfVIP

An overview of the Portug uese electricity market Paula Ferreira (Corresponding author) Department of Production and Systems, University of Minho Azurém 4800-058 Guimarães Portugal Tel: +351253511670 Fax: +351253510343 Email: paulaf@dps.uminho.pt Madalena Araújo Department of Production and Systems, University of Minho Azurém 4800-058 Guimarães Portugal Tel: +351253511670 Fax: +351253510343 Email: mmaraujo@dps.uminho.pt M.E.J. 0’Kelly EirGrid plc. Ireland Email: eddie.okelly@ ABSTRACT The electricity market in Portugal was recently opened to all consumers. However, it remains highly concentrated in terms of control of production and supply and the long-term power purchase arrangements still coexist with free market. This paper discusses the electricity market restructuring process in Portugal, presenting its main marks over the past years and the present situation. The evolution of the electricity prices in Portugal is analysed, and a comparison with EU-15 is presented. Special attention is given to Spain due to the possibility of cross-border competition in the future arising from the formation of the Iberian electricity market. Keywords: Electricity, liberalisation, Portugal. 1. INTRODUCTION In 1995, the European Union (EU) published a White Paper (European Commission, 1995) where the goals of the European energy policy were outlined: overall competitiveness, security of energy supply and environmental protection. The liberalisation of the internal market for electricity and natural gas was stated as a primary and central aim. Since then, important steps have been taken to meet liberalisation objectives in the energy market. The electricity directive 96/92/EC and the gas directive 98/30/CE were adopted, laying down the rules to allow for real competition and to give consumers a free choice of energy su