Welcome to the interview with João Manso Neto, CEO of Greenvolt Group
What assessment do you make since Greenvolt went public on the stock exchange?
We had expertise in biomass, and it was an area we wanted to capitalize on. In utility-scale projects, we said at the time that there was a shortage at the European level. And we said that the future of electricity design relied heavily on the decentralized segment. We fulfilled the business plan, making detailed adjustments.
In the context of some reduction in investment by renewable energy companies, should Greenvolt Group align with this trend?
What I see, on the contrary, are many opportunities that we will explore, using other financial means. There are very interesting things but I don’t intend to enter in more risky countries, it will be mainly Europe. There are plenty of opportunities in countries where we are already present.
Could we have a 100% renewable electricity production?
It’s possible. But it doesn’t make sense to spend a fortune to decarbonize the last 2% to 5%. Where we need to decarbonize more is in industrial processes, heating and cooling, and transportation. If we can get electricity to 90% [from renewables], that’s already a great achievement.
How do you see the use of batteries and the trend of decreasing equipment costs? Is there still room for cost reduction?
Currently, leveraging price differentials during the day isn’t sufficient. Additional mechanisms will be required. What I find most effective is a long-term power guarantee, allowing for a revenue stream representing 40% to 50% of cash flow. That’s what we have in Poland.
So, we need to expand and diversify the technological structure. It shouldn’t be just solar, it should also be complemented with batteries, an area where we are investing heavily.
Where can we increase the production of renewable electricity and how can we enhance the decarbonization of consumption?
A good portion has to come from decentralized energy. It can have a huge impact. We want more renewables in the grid. In Portugal, much of this will be achieved through decentralization and hybridization (using existing grid connection points to connect other technologies). Hybridization is crucial. We also need to consider further electrifying consumption.
Electricity currently accounts for a quarter of Portugal’s final energy consumption. How will we decarbonize the consumption that is not easy to electrify?
Electrification can go much deeper. One of the major energy demands of industry is heat, which can also be produced by electricity. We won’t electrify everything, but I would say that electrification is essential in the short term. In the coming years, we will still need thermal technology, albeit increasingly less used, but serving as a backup. Natural gas will continue to be an important source to provide stability to the electrical system.
But it will need some kind of support. It’s not feasible for a power plant to operate for only 5% of the hours in a year.
Of course. The support is precisely the power guarantee. And it’s much cheaper than considering solutions that seem economically indefensible to me, such as hydrogen as a storage element. Green hydrogen, in terms of industrial processes, has a significant impact by replacing current gray hydrogen. However, storing excess electricity in hydrogen is very expensive.
The Portuguese government needs to submit the final version of the PNEC (National Energy and Climate Plan) to the European Commission. What should Portugal propose for 2030?
Where I would make changes is in a fundamental focus on decentralization. It doesn’t need subsidies. The state needs to streamline licensing processes and also provide incentives to E-Redes, so that it gives the necessary importance to this. It’s not about giving more money. It’s about ensuring that in the remuneration formula of E-Redes, the part related to enabling more renewables has weight.
What is your opinion on offshore wind in Portugal?
I have always advocated for offshore wind auctions, but I also believe that there are times when we shouldn’t try to be the “first of the class”. It makes sense for Portugal to have offshore projects prepared, as long as it does not allocate capacity rights and guaranteed prices that are too high. We need to let the technology evolve.
Portugal wisely invested in wind power in the early decades of the century when it was cheaper. While the Spanish went all in on solar panels with tariffs of over €300 per megawatt hour, Portugal did not. That was a wise decision. Being the first of the class? Betting heavily on hydrogen? Let’s see how the technology develops. I am in favor of moving forward, but allowing the technology to evolve.
Interview with João Manso Neto, CEO of Greenvolt Group
