CorporateLiveWire: The memorandum of understanding of the assistance plan between EU-IMF-ECB and Portugal and the Renewables Sector

The memorandum of understanding (MoU) signed by Portugal, the International Monetary Fund (IMF) and the European Union and the European Central Bank (ECB) on 3 May as part of the bailout package, commits the Portuguese government to "assess in a report the possibility of areeing a renegotiation of the contracts in view of a lower feed-in tarriff". This applies to the existing contracts.

The MoU also commits the government to "revise downward" the feed-intariffs for new contracts and ensure that the tariffs do not over compensate producers for their costs and continue to provide an incentive to reduce costs further, throught digressive tariffs and develop alternative mechanisms for more mature technologies, suxh as feed-in premiums.

Portugal must report on its progress in the third quarter of every year.

PACHECO, Mónica Carneiro, “The memorandum of understanding of the assistance plan between EU-IMF-ECB and Portugal and the Renewables Sector”, in Corporate Live Wire, 15 de Junho 2011

The PDF file is available to download in this page.