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Portugal set to cut feed-in tariffs 

Credit:  Branislav Pekic, Windpower Monthly Magazine, 01 August 2010 ~~

The Portuguese government has announced that it will review the existing feed-in tariff mechanism following calls that the subsidies are excessive and contribute to the increase of electricity prices to final consumers.

The tariff review is anticipated in Portugal’s National Energy Strategy 2020, published in June. It will consider the contribution of new technologies in the production of renewable energy, as well as the costs associated with their development.

The support mechanism is voluntary and is managed by the Directorate General for Energy and Geology (DGEG), part of the Ministry of Economy. Once a wind project is granted permission to connect to the grid, there is no limit to the annual production that benefits from the tariff.

However, the total production that can benefit from the tariff is limited to an overall value of energy or a defined number of years, whichever is achieved first. Once these limits are achieved, the installations start selling their production under a liberalised regime.

Currently, the average indicative tariff for wind is EUR74-75/MWh, with a validity of 33GWh/MW or 15 years.

High-profile opposition

In April, a group of 33 well-known Portuguese economic, business and academic personalities published a manifesto for a new energy policy warning that subsidies for renewable energy cannot be permanent.

Source:  Branislav Pekic, Windpower Monthly Magazine, 01 August 2010

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial educational effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

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