Lessons from wind policy in Portugal

Wind capacity and generation grew rapidly in several European countries, such as Portugal. Wind power adoption in Portugal began in the early 2000s, incentivized by a continuous feed-in tariff policy mechanism, coupled with public tenders for connection licenses in 2001, 2002, and 2005. These policies led to an enormous success in terms of having a large share of renewables providing electricity services: wind alone accounts today for ~23.5% of electricity demand in Portugal. We explain the reasons wind power became a key part of Portugal’s strategy to comply with European Commission climate and energy goals, and provide a detailed review of the wind feed-in tariff mechanism. We describe the actors involved in wind power production growth. We estimate the environmental and energy dependency gains achieved through wind power generation, and highlight the correlation between wind electricity generation and electricity exports. Finally, we compare the Portuguese wind policies with others countries’ policy designs and discuss the relevance of a feed-in tariff reform for subsequent wind power additions.