Feed-in tariffs for wind energy in Portugal: Current status and prospective future

Abstract

The question about how wind energy can be remunerated after the end of feed-in tariff schemes still remains unanswered in Portugal. Presently, the majority of wind energy promoters are connected through a point of common coupling, with a defined capacity attribution. In return, these promoters are rewarded with a premium rate (i.e., a feed-in tariff) for a limited amount of time or energy delivered. Therefore, promoters are foreseeing novel ways to return their investments and maximise their income, assuming feed-in tariff schemes will eventually come to a halt. This paper addresses the current Portuguese regulatory and commercial frameworks, especially the feed-in tariff mechanisms in force for supporting wind energy. The current level of revenues obtained by wind energy promoters in Portugal (provided by the feed-in tariff scheme) is compared with the hypothetical income they could obtain on a market environment. The non-firm access to the distribution networks is presented as a solution for integrating further generation capacity and thus increasing profitability for their promoters.