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 of returning their investments and maximising 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.