VZCZCXRO0001
RR RUEHAG RUEHDF RUEHHM RUEHIK RUEHLN RUEHLZ RUEHMA RUEHPB
DE RUEHLI #1524/01 2060733
ZNR UUUUU ZZH
R 250733Z JUL 06
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 5008
INFO RUEHZN/ENVIRO SCIENCE AND TECH COLLECTIVE
RUCNMEM/EU MEMBER STATES
RUEANAT/NASA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC

UNCLAS SECTION 01 OF 02 LISBON 001524 
 
SIPDIS 
 
SIPDIS 
 
NASA PASS TO DAVID A. AMIDEI IN ENVIRONMENTAL MANAGEMENT 
DIVISION 
 
E.O. 12958: N/A 
TAGS: ENRG EINV TRGY ECON ETRD ETTC PO
SUBJECT: GE BUILDING THE WORLD,S LARGEST SOLAR ENERGY PLANT 
IN PORTUGAL 
 
 
¶1. SUMMARY: GE Energy Financial Services has joined with the 
PowerLight Corporation (US) and Catavento (Portugal) to 
construct the world,s largest solar photovoltaic (PV) power 
plant, slated to open in January 2007. This $75 million 
project - located in Serpa, Portugal - is GE,s first solar 
power venture in Europe. The project is expected to increase 
Portugal,s current PV capacity by 400% and provide 
electricity to over 8,000 households. END SUMMARY. 
 
ABOUT THE PROJECT 
----------------- 
¶2. On July 6, POL/ECON Officer met with Piero Dal Maso, 
co-CEO of the Portugal-based energy firm Catavento Produo 
de Energia Elica, Lda, to discuss its joint venture with GE 
and PowerLight to build the world,s largest PV power plant. 
Catavento is one of only a handful of renewable energy firms 
in Portugal and has already invested heavily in several wind 
farm projects. 
 
¶3. In 2002, Catavento developed a proposal to create a large 
scale solar PV power plant in Serpa, Portugal. The Serpa 
region is considered one of the sunniest areas in Europe and 
is located approximately 130 miles southeast of Lisbon on the 
Spanish border. 
 
¶4. Catavento shopped its proposal in Europe and the United 
States. In 2004 and 2005 respectively, the PowerLight 
Corporation and GE joined the project. GE will finance and 
own the project and has invested $75 million in its 
construction and maintenance. The PowerLight Corporation is 
responsible for its operation and for installing the 
PowerTracker system. PowerLight created the PowerTracker 
technology which is the most widely used solar power system 
in the world. Catavento will provide project management 
services and liaison with the host government for licenses 
and permits. 
 
¶5. The construction of the 150-acre Serpa PV power plant 
began in May 2006 and is expected to be completed by January 
¶2007. Currently, the Bavaria SolarPark in Germany is the 
world,s largest PV power plant. GE estimates that the Serpa 
plant will produce enough electricity to power over 8,000 
homes and save over 30,000 tons of greenhouse gas emissions 
per year. 
 
ENERGY IN PORTUGAL 
------------------ 
¶6. In 2005, Portugal,s electricity and heating needs were 
provided by the following sources: natural gas/thermal (29%), 
coal (24%), petroleum/gas (23%), hydro (12%), wind (7%), and 
other (5%). Other includes solid biomass/biogas (living and 
dead biological material like plants and fermented organic 
matter), wave power (from ocean surface waves) and 
photovoltaics (solar cells that collect and convert sunlight). 
 
¶7. In 2001, Portugal and Spain drafted a plan to create a 
joint electricity market called the Mercado Ibrico de 
Electricidade (MIBEL), which would completely integrate the 
two country,s electricity markets and regulate the costs of 
energy while increasing the efficiency of regional 
electricity grids. Because of regulatory delays on both sides 
of the aisle, the MIBEL project has not been implemented. 
 
RENEWABLE ENERGY RESOURCES (RES) IN PORTUGAL 
-------------------------------------------- 
¶8. Portugal has limited domestic energy reserves and depends 
heavily on imports. During the 1990s, Portugal began 
investing in energy from within its borders and exploring 
alternative forms that were both cost effective and 
environmentally safe. Following the lead of countries such as 
Germany and Spain, Portugal began investing in Renewable 
Energy Sources (RES) such as hydro, wind, solar and solid 
biomass. 
 
¶9. Hydro and wind energies are the two most popular RES used 
in Portugal. Hydro is not very reliable as its production 
levels vary depending on the amount of rainfall per year. 
Hydropower accounts for 12% of electricity production, down 
from just over 30% in 2000. During extremely dry seasons it 
can account for less than 10%. Wind energy is more reliable 
because of its production consistency, but it is difficult to 
store and expensive to convert. The use of solar energy, 
while accounting for less than 1% of overall energy 
production, is growing at a steady rate each year. 
 
 
LISBON 00001524  002 OF 002 
 
 
¶10. By 2010, the GOP plans to increase its production of wind 
energy by 250%, hydropower by almost 400%, and solar energy 
by 1000%. In order to meet its 2010 energy goals, the GOP 
launched an international tender for three large-scale wind 
parks with capacities of 1,000 megawatts (MW), 500 MW and 200 
MW. In addition, a second PV solar plant project is planned 
for Moura, Portugal. British Petroleum Solar and Amper 
Central Solar, S.A. are the two major stakeholders in this 
ambitious 62 MW capacity project. If successful, that project 
would surpass the Serpa PV power plant six times over in size 
and capacity. At this point, little has been publicly 
released about the project, its production costs or its 
prospective construction dates. 
 
OBSTACLES TO CHANGE 
------------------- 
¶11. Major obstacles that may prohibit Portugal from reaching 
its 2010 renewable energy goals are insufficient government 
funds, bureaucratic inefficiencies in processing 
permits/licenses, a lack of a technically-trained workforce 
(Portugal has among the highest high school drop-out rates in 
Europe), and access to land not already deemed 
"environmentally protected". 
 
¶12. COMMENT: With the rising costs of fuels on the world 
market, the GOP now realizes more than ever that it must 
reduce its dependency on external energy supplies. The Serpa 
PV power plant project is a step in the right direction and 
shows that Portugal is dedicated to promoting the use of 
alternative energies and open to direct investment. 
Portugal,s geographic location is ideal for many renewable 
energy projects, and the Azores archipelago presents 
additional opportunities for hydropower and geothermal energy 
production. END COMMENT. 
Hoffman