Developers losing interest after profits dive following regulatory change
1 June 2009
Portugal's leading wind power developers say they are losing interest in wind projects in the country after a regulatory change made back in 2005 has made the business less profitable than it was. EDP Renováveis, Iberdrola, Martifer and Endesa aired their grievances at Portugal's fourth Renewable Energy Conference, held April 30 in Lisbon. Before 2005, the government mandated purchase prices for wind power were indexed to inflation from the point a project was permitted, but after that year the starting point for indexation was set at the date when electricity begins to flow to the grid. "The later we connect the wind farm to the network, the less money we will receive," said João Paulo Costeira of EDP Renováveis. He said his company has lost interest in Portugal's wind market and has not participated in recent tenders. Executives from the other companies echoed his remarks. They also complained about lengthy delays in connecting wind projects to the grid caused by government red tape.
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