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Portugal

Portugal

Portugal agrees FIT deal with wind owners

PORTUGAL: The Portuguese economy ministry has reached an agreement with producers, accounting for 70% of Portugal's wind power capacity, to reduce the costs of remunerating wind production by €140 million to 2020.

The deal affects about 3GW of wind capacity regulated by a 2005 law which set a tariff of €110/MWh over a 15-year period.

Under the new agreement, producers receiving this tariff have committed to paying €6,000/MW per year to the national electricity system to partially defray the costs of the FIT and other product support systems borne by consumers.

After 2020 these producers will opt into a system of floor and cap pricing guaranteeing remuneration at between €56 and €66/MWh at current prices until 2025 or 2027, a Portuguese government spokesman said.

"The agreement gives us immediate results in ensuring the financial sustainability of the system, provides stability for wind power producers and investors and will create a new setting for the licensing of new projects without feed-in tariffs at market prices," he added.

Remuneration of wind farms not regulated by the 2005 law "will be tackled at a later date if necessary," the spokesman said.

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