Regional Fiche Madeira
Regional Fiche Madeira
Electricity, cooling and heating, and water and sanitation, were identified as key basic needs to be analysed in the
Autonomous Region of Madeira. Key facts and figures on the overall access to the two needs, further developed in this
fiche, are summarised below:
Key area 1 “Electricity, cooling and heating”: The region enjoys universal access to electricity and has at its
disposal an array of technical solutions that ensure the smooth running of the regional energy system. However, its
energy grid is not connected to the mainland and is dependent on its own energy sources, generation capacity and
the import of fossil fuels.
Key area 2 “Water and sanitation”: An overall positive evolution in access to drinking water in the region in recent
years is observed, including water quality levels. However, the island's geographic profile and highly dispersed and
fragmented urbanisation poses major obstacles to the development of supply and sanitation networks.
2.1.1 Conditions in place to meet the needs and main factors constraining access
Conditions in place
World Bank data for Portugal (including Madeira) points to 100% access to electricity since 19901. This results from a series
of investments made by the Regional Government that have enabled widespread access to electricity and the provision
of technical solutions that ensure the smooth running of the regional energy system. Social tariffs are also planned for
households with fewer financial resources to ensure their access to this service.
The regional electricity production system has been able to meet demand. According to the National Institute for
Statistics (INE) data, gross electricity production in the region2 stood at 947,414.621 kWh in 2011, the highest figure for the
period between 2011 and 2021. The lowest values occurred in 2013 (866,229.126 kWh) and in 2021 (888,445.860 kWh).
The latter value corresponds to 1.75% of the country's total energy production.
Between 2010 and 2021, electricity consumption per inhabitant in the region was lower than at the national level,
ranging from 3,285.3 kWh in 2010 (highest value) to 3,005.7 in 2013 (lowest value), while at the national level, these figures
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were 4,776.8 kWh and 4,420.9, respectively. In 2021, the Region's figure was 3,178.7 kWh (4,650.7 kWh for the national
value). As for energy costs, applying a simple tariff on the regulated market, the price averaged 0.1605€/kWh nationally,
while in Madeira it was lower at 0.1524€/kWh3, with a social tariff4 of 0.1119€/kWh.
The survey on energy consumption in the domestic sector, conducted by INE in 2010 and 2020, shows an increase in
electricity costs. Available data indicates that the annual expenditure on electricity by households in Madeira in 2010 was
382€ (523€ at the national level), a value that rose to 667€ in 2020 (751€ at the national level), which represents an increase
of 74.6% (43.4% at the national level). These numbers do not yet reflect the increase in energy costs triggered by
Russia's invasion of Ukraine, and it is likely that these figures have risen recently.
The Energy System of Madeira includes the production, storage, transportation, commercialization and
management under a public service regime, and these activities are carried out by Empresa de Eletricidade da Madeira,
S.A. (EEM)5.
Despite Madeira's administrative autonomy, the National Energy Services Regulatory Authority (ERSE) exercises
regulatory powers in the region, without prejudice to the specificities of the region, namely monitoring investment plans
and the costs of the region's energy systems. Madeira has representatives in various bodies of the regulator, namely the
Advisory Board and the Tariff Board.
The Action Plan for Sustainable Energy and Climate in the Autonomous Region of Madeira provides an important
baseline, as it seeks to ensure energy provision throughout the process of achieving a fair energy transition and climate
change.
Various funding opportunities help improve energy use and efficiency in the region. The European Regional
Development Fund (ERDF) and the European Social Fund Plus (ESF+) Programme for Madeira in 2021-20276 dedicates
a specific objective to energy efficiency (and to the reduction of greenhouse gases emission)7 that foresees a total
investment of 17 million euro to help reduce energy consumption to around 3,000,000 MWh/year in 2029. The ERDF-ESF
Operational Programme for 2014-20208 financed the transition to a low-carbon economy with 14.4 million euro, which
included energy efficiency. The Operational Programme “Sustainability and Efficiency in the Use of Resources"9
(POSEUR10) also supported the installation of the Calheta III hydroelectric power plant, which can provide an important part
of the region’s energy needs, while making a relevant contribution to increasing the share of renewable sources in the
regional energy mix. This is expected to help achieve greater energy efficiency in public buildings, companies, and private
housing. The Portuguese Recovery and Resilience Plan (RRP) for Madeira provides assistance by supporting the
installation of battery power stations11 and ensuring that newly constructed housing units fully comply with energy efficiency
rules12.
Constraining factors
The region faces challenges which partially constrain access to this basic need or are likely to constrain access in the future:
The insularity and location of Madeira means that the region cannot be connected to the continental energy network,
and requires it to be self-sufficient in energy production. The region relies on the import of natural gas and other fossil fuels
by maritime transport to ensure the production of electricity. This results in a high dependence on the regular functioning of
supply chains to ensure a smooth operation of energy production systems. The absence of energy connections or links to
a grid also results in a lack of redundancy in energy systems.
In 202113 71.5% of energy production in the region came from thermal (non-renewable) sources, followed by energy
generated from wind power, with a weight of 15.3%. At national level, thermal energy (non-renewable) was also the most
common source of energy, accounting for 42.9% of total production, followed by hydroelectric power (26.4%) and wind
power (25.9%), representing a more diversified energy mix compared to the regional situation.
Renewable energy sources play an increasingly important role, as they can reduce dependence on external and non-
renewable energy sources and contribute to reducing greenhouse gas (GHG) emissions, while presenting challenges due
to their intermittency.
Renewable energy sources still have a limited preponderance in the region14. In 2021, 58.4% of the electricity
produced in Portugal came from renewable sources, while in the region this figure was 33.45%. Nevertheless, the region's
figure increased by 46 percentage points compared to 2011 (22.91%), while in Portugal this increase was more moderate,
given that the base figure was higher (45.78% in 2010).
REGIONAL FICHE – MADEIRA /3
Data from the Madeira Regional Directorate of Statistics for 2016 shows that only 4.8% of households in the region had air
conditioning, while 11% had heating. Water heating was available in 98.6% of households. This situation reflects the mild
temperatures throughout the year, with an average annual temperature in coastal areas (where most of the population is
concentrated) of 19ºC15. Average temperatures drop to around 13ºC in winter, while the average temperature in summer is
around 23ºC.
There are significant differences in electricity consumption by sector16 between the region and the mainland. The
domestic sector accounted for 35.4% of consumption in Madeira, while the national figure was 29.4%. Consumption for
street lighting and indoor lighting in government buildings is also higher in the region. On the other hand, the region's
consumption in industry (11.7%) and agriculture (0.5%) is lower than at national level (respectively, 39.9% and 2%)
Climate projections made within the scope of the CLIMA-Madeira Strategy17 show a general tendency for temperatures
to rise between 1.3 and 3ºC by 2100. This could increase the need for cooling buildings and homes during the summer
period, bringing about an increase in energy needs.
The capacity of the region's electricity generation infrastructure has remained stable over the last few years.
According to data from the Energy Observatory18, the capacity of the region's power generation plants in 2009 was 686.40
MW, a value that peaked in 2011 at 945.72 MW. In 2019, this number stood at 883.76 MW.
Thermoelectric plants play an essential role in regulating the operating parameters of the various infrastructures
in the region's energy network19, neutralizing variations in the generation of energy from renewable energy sources
(intermittent) and variations in consumption. On the island of Porto Santo, which has only one thermoelectric power station,
its inoperability would result in the unavailability of energy, while on the island of Madeira, the existence of two thermoelectric
infrastructures helps to mitigate this problem.
Climate change may potentially lead to an increase in the intensity and frequency of extreme weather events, which
could therefore damage essential infrastructures. The rise of the average sea level, which in the region is projected to reach
50 cm by the end of the century, as well as a greater likelihood of extreme weather events, such as extreme precipitation,
rural fires, and heat waves20, can pose a challenge to the integrity and functioning of these fundamental structures.
3.1.1 Conditions in place to meet the needs and main factors constraining access
Conditions in place
In 2021, 99.25% of the region's (monitored) water was of good quality, complying with the legal parametric values21, which
is higher than the national figure (98.87%).
The supply of drinking water is in line with national levels, but the sewerage network is lacking. In 2022, Águas e
Residuos de Madeira (ARM) supplied 54.8 million m3 of drinking water to the municipalities and treated 3.2 million m 3 of
sewerage22 (both at bulky supply services). In 2020, 99.5% of homes in the region were served by a water supply23,
however, only 68% were connected to sewerage systems (the national figure being 85% in 2020). Between 2011 and
2020, the percentage of dwellings served by sewerage24 increased by 1.8% (from 66.1 to 67.9%), while mainland
Portugal saw a higher increase, from 80% to 85%.
The base infrastructure has been in operation since 1950 but has undergone maintenance and remodelling over the years
to increase its capacity in the face of increased demand for water, mainly for human consumption 25.
Due to the orographic conditions of the Portuguese OR groundwater sources have a higher relevance when compared to
the mainland. The region has 180 water sources, part of a complex and highly capillary system. Data from 2020 shows
that of the 60,412,000 m3 abstracted, 40,776,000 m3 came from groundwater sources (67.5% of the total), while only
19,636,000 m3 came from surface sources (32.5% of the total). In the case of the island of Porto Santo, all the water comes
from a desalination plant26.
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There is a higher volume of water supplied/used by the population (domestic sector) in the region. This figure rose
from 98.7 m3 in 2011 to 101.4 m3 in 2020, which is higher than the national figure (63.27 m3 in 2020).
Data for 2021 and 2022 from a study on the price of water carried out by DECO - Associação de Defesa do Consumidor27,
points to an average cost of 0.71€/m3 for consumption of up to 120 m3 (0.69€/m3 in 2021), with the average monthly tariff
being around 7.08€ for water supply and 2.64€ for sanitation (6.85€ and 2.56€ in 2021, respectively). The availability of
social tariffs in some municipalities make the cost of water supply and sanitation even lower. In mainland Portugal, data
from 202128 indicates that the average cost of the water supply service was 11.39€/month, while in the case of sanitation,
it was 8.99€/month.
From an administrative perspective, Águas e Resíduos da Madeira (ARM)29 is responsible for bulky supply of water
and waste management in the region under a public service concession and exclusivity regime. This entity is owned
by the Government of the Autonomous Region and 5 other municipalities, to whom it also provides retail distribution
services. The Madeira Archipelago River Basin Management Plan for 2021-2027 aims to increase the quality and
availability of water, defining necessary measures to ensure efficient water management.
The ERDF-ESF+ Programme in 2021-2027 provides some opportunities to support water and sanitation, having as a
specific objective to promote access to water and sustainable water management with 45 million euro30. A complementary
action “Plano de Eficiência e Reforço Hídrico dos Sistemas de Abastecimento e Regadio da RAM” is also planned with a
budget of 70 million euro31. Regarding wastewater, in the framework of “Promover o acesso à água e a gestão sustentável
da água” the programme allocates 7 million euro to the collection and treatment of wastewaters32.
Constraining factors
The region faces challenges which partially constrain access to this basic need or are likely to constrain access in the future:
The region's steep terrain is one of the main obstacles to the development and expansion of sewerage networks,
which also explains the lower coverage rate for this service. This geographic situation together with the dispersion of the
population result in higher cost per home of this type of infrastructure deployment in Madeira.
The dispersion of human occupation of the territory presents an obstacle to the extension of drainage and sanitation
networks33 and the low cost of water and sanitation means that the rate of return on investment is low.
A significant part of the water abstraction is located in the north of Madeira Island and is then transported to the
main areas of human habitation along the southern coastline34. This polarization between the place of abstraction and
consumption also results in the need for a more extensive network and additional costs associated with its maintenance
and operation which, due to the orography and relief, are particularly complex.
The low cost of water does not encourage a more restrictive resource management at household level35.
Rising sea levels could increase the risk of salinization of groundwater36, and less rainfall could negatively
influence groundwater sources recharge37, which is particularly relevant given the region's dependence on them.
Water losses are one of the biggest problems in terms of water management in the region38, while they are not
homogeneous throughout the region, with some municipalities having losses of around 70%39.
Between 2012 and 2019 there was a 25% increase in the water losses-volume. However, in 2020 losses decreased by
3.4% compared to the previous year40. This may be related to the contraction in tourism and less pressure on the water
supply system caused by the COVID-19 crisis and the reduction of economic activity.
The proportion of dwellings served by sewerage increased slightly between 2011 and 2021, from 66.1% to 67.9%.
This situation reflects the constraints already observed on the expansion of drainage networks due to orography and a
highly diffuse urbanization pattern. This means that the volume of sewerage drained per inhabitant has not changed
significantly either, rising from 50m3/inhabitant in 2014 to 52.8 m3/inhabitant in 2020.
In terms of the volume of wastewater by source41, the domestic sector was the most relevant, accounting for 90% of the
wastewater treated in 2020. It should be noted that the fact that some industrial facilities have their own treatment plants
may contribute to a decrease in their relative weight. Finally, in 2020, 90.3% of sewerage underwent primary treatment,
while 3.4% and 5.2% had secondary and tertiary treatment42.
REGIONAL FICHE – MADEIRA /5
CONTINUE TO SUPPORT A DIVERSE ENERGY MIX AND GREATER UPTAKE OF RENEWABLE SOURCES
Maintain the diversification efforts of energy sources to reduce dependency on fossil fuels (imported to the region).
Increase the share of renewable energy sources in the regional energy mix.
Increase the capacity to store energy and reduce the effects of intermittency of renewable energy sources.
Annexes
Annex 1 - References
the elderly, unemployment or household allowance and social disability pension. In 2022, the social tariff allowed a discount
of 33.8% on the final invoice.
5 Decreto Legislativo Regional n.º 10/2023/M, Região Autónoma de Madeira, 2023,
https://files.dre.pt/1s/2023/01/01400/0001300052.pdf
6 Madeira Regional Programme 2021-2027, page 89, https://portugal2030.pt/wp-content/uploads/sites/3/2023/05/sfc2021-
PRG-2021PT16FFPR001-1.2_PRMADEIRA.pdf
7 Specific objective RSO2.1 - Promoting energy efficiency and reducing greenhouse gas emissions.
8 ERDF-ESF Madeira Regional Programme in 2014-2020, https://ec.europa.eu/regional_policy/in-your-
country/programmes/2014-2020/pt/2014pt16m2op006_en
9 PO SEUR - Programa Operacional Sustentabilidade e Eficiência no Uso de Recursos, Instituto de Desenvolvimento
Portugal and the European Commission that brings together the work of the 5 European Structural and Investment Funds -
ERDF, Cohesion Fund, ESF, EAFRD and EMFF - between 2014 and 2020).
11 (TC-C14-i02-RAM).
12 (RE-C02-i03RAM).
13 Coal, oil, electricity and natural gas statistics, Instituto Nacional de Estatística e Direção Geral de Energia, 2023,
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0008637&contexto=bd&selTab=tab2)
14 Coal, oil, electricity and natural gas statistics, Instituto Nacional de Estatística e Direção Geral de Energia, 2023,
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0009712&contexto=bd&selTab=tab2
15 Estratégia de Adaptação às Alterações Climáticas da Região Autónoma da Madeira. Secretaria Regional do
Ambiente e Recursos Naturais; Gomes, A., Avelar, D., Duarte Santos, F., Costa, H. e Garrett, P. (Editors), 2015,
https://observatorioclima.madeira.gov.pt/wp-content/uploads/pdfs/estr_clima_web_yeyxxt.pdf
16 Coal, oil, electricity and natural gas statistics, Instituto Nacional de Estatística e Direção Geral de Energia, 2023,
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0008222&contexto=bd&selTab=tab2
17 Estratégia de Adaptação às Alterações Climáticas da Região Autónoma da Madeira. Secretaria Regional do
Ambiente e Recursos Naturais; Gomes, A., Avelar, D., Duarte Santos, F., Costa, H. e Garrett, P. (Editors), 2015,
https://observatorioclima.madeira.gov.pt/wp-content/uploads/pdfs/estr_clima_web_yeyxxt.pdf
18 Installed electricity capacity, Observatório da Energia (ADENE – Agência para a Energia), 2019,
(https://www.observatoriodaenergia.pt/pt/energia-em-numeros/r-a-madeira/0/1/bar/gwh/1870-2011)
19 Estratégia de Adaptação às Alterações Climáticas da Região Autónoma da Madeira. Secretaria Regional do
Ambiente e Recursos Naturais; Gomes, A., Avelar, D., Duarte Santos, F., Costa, H. e Garrett, P. (Editors), 2015,
https://observatorioclima.madeira.gov.pt/wp-content/uploads/pdfs/estr_clima_web_yeyxxt.pdf
20 Ibid.
21 Safe water (%) by Geographical localisation (NUTS - 2013); Annual, Instituto Nacional de Estatística (INE) e Entidade
de Estatística (INE), Entidade Reguladora dos Serviços de Águas e Resíduos (ERSAR) and Direção Regional de Estatística
da Madeira (DREM), 2023,
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0009604&contexto=bd&selTab=tab2
24 Proportion of dwellings served by wastewater treatment (%) by Geographical localisation (NUTS - 2013); Annual, Instituto
Nacional de Estatística (INE), Entidade Reguladora dos Serviços de Águas e Resíduos (ERSAR) and Direção Regional de
Estatística da Madeira (DREM), 2023,
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0009606&contexto=bd&selTab=tab2
REGIONAL FICHE – MADEIRA /7
https://www.deco.proteste.pt/sustentabilidade/lixo-sem-agua
28 Relatório Anual dos Serviços de Águas e Resíduos de Portugal de 2022, Entidade Reguladora dos Serviços de Águas e
content/uploads/sites/3/2023/05/sfc2021-PRG-2021PT16FFPR001-1.2_PRMADEIRA.pdf
31 Ibid.
32 Ibid.
33 Interview with the ARM– Águas e Resíduos da Madeira, S.A.
34 Ibid.
35 Ibid.
36 Groundwater is found in cracks and spaces in the ground, sand, and rock. Surface water is any body of water above
ground, including rivers, lakes, wetlands, or reservoirs. Cómo prevenir la contaminación de las aguas subterráneas y
superficiales en la UE, European Parliament, 2023
https://www.europarl.europa.eu/news/es/headlines/society/20230831STO04505/prevenir-la-contaminacion-de-las-aguas-
subterraneas-y-superficiales-en-la-ue
37 Estratégia de
Instituto Nacional de Estatística (INE), Entidade Reguladora dos Serviços de Águas e Resíduos (ERSAR) and Direção
Regional de Estatística da Madeira (DREM), 2023,
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0009609&contexto=bd&selTab=tab2&xlan
g=en
41 Águas residuais drenadas (Série 2011) ( m³) por Localização geográfica (NUTS - 2013) e Origem das águas residuais
(Sector); Anual, Instituto Nacional de Estatística (INE), Entidade Reguladora dos Serviços de Águas e Resíduos (ERSAR)
and Direção Regional de Estatística da Madeira (DREM), 2023,
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0009601&contexto=bd&selTab=tab2
42 Wastewater treated in Wastewaters treatment plan (m³) by Geographic localization (NUTS - 2013) and Level of treatment of
wastewater; Annual, Instituto Nacional de Estatística (INE), Entidade Reguladora dos Serviços de Águas e Resíduos (ERSAR)
and Direção Regional de Estatística da Madeira (DREM), 2023,
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0009603&contexto=bd&selTab=tab2