Solar, wind performance enables Portuguese regulatory authority to suggest tariff cut

• Portugal's electricity regulatory authority has actually claimed higher than forecasted solar as well as wind generation has enabled it to propose a 2.6% reduction in regulated tariffs to protect consumers in the country from soaring energy rates.

ERSE stated the reduction would certainly be possible as a result of much better than anticipated "advantages" from renewables, along with energy purchase contracts and also extra revenue from greenhouse gas auctions.

The proposed tariff would be effective from 1 July and also help 921,000 customers with contracts based on controlled tariffs.

"This extraordinary review of tariffs in 2022 is vital to make sure better tariff stability given the existing context of high volatility in energy markets and also the extraordinarily high price level in the wholesale electricity markets," ERSE claimed.

ERSE will certainly make a decision on the tariffs by mid-June.

The proposal comes after the European Commission last week consented to allow Portugal and Spain to decouple the rate of gas from that of electricity for the following year as part of efforts to secure consumers from climbing rates.

Since 2021, Portugal had 1,513 MW of set up solar PV, according to trade body SolarPower Europe. As part of initiatives to speed up release, it was recently introduced that the country will no longer need ecological influence assessments for new solar projects with a capacity of under 50MW.

Portugal's new government last month revealed a strategy to raise the share of renewables in electricity manufacturing to 80% by 2026, 4 years previously than formerly prepared.

The country has considering that awarded 183MW of floating PV capacity in its latest solar auction, which gathered a globe record-low cost and saw prospective buyers concentrate on hybridising projects to maximise grid connections.