Taxpayers stiffed again over wind farm licensing deal

windfarmEDP Renewables has received the government go-ahead to construct two new wind farms next year, applied for back in 2008.

The chairman of EDP Renováveis, João Manso Neto, said "the investment is a bit more than expected, to around €60 million. The two parks will together produce about 50 megawatts."

The original budget was €50 million to build the farms in Maunça in Batalha (20 megawatts) and Vigia in Viseu (28 megawatts).

The Secretary of State for Energy, Jorge Seguro Sanches, admitted at the end of October, that these two projects will attract subsidised tariffs, paid for by taxpayers.

Current policy is that renewable energy production facilities must pay their own way without the taxpayer being forced to shell out money in 'feed'in tariff' subdsidies. As these wind farms were applied for nine years ago and only now have been licensed, the government therefore is happy that this private company will be heavily subsidised by the State while it promoted a policy of 'zero subsidies.'

The Secretary of State for Energy also stressed that "the technological evolution, which has in recent years, combined with the strong national solar potential, has, however, imposed a paradigm shift in the renewable energy sector. It is in this context that the Government's current commitment to promoting renewable projects, without a feed-in tariff, is based on reducing the energy bill, especially for families."

This sort of guff does not excuse the licensing of two sizeable production units which will cost the taxpayers dear over the lifetime of the wind farms.

The company says it has been waiting since 2008 for approval, hinting that if the State is so slow in getting things done then the company should not be penalised as subsidy policies change.