Portugal will carry out one of Europe s biggest tenders for wind power on Wednesday in a bid to cut its heavy fuel bill and clean up its record as a top greenhouse gas polluter. About half a dozen consortiums featuring some of Europe s biggest power companies could bid in the two-phase 1,500-megawatt project. It will more than double wind power capacity in Portugal, which was among world leaders in installing new wind power last year.

With joblessness at nearly an 18-year high, the Socialist government s auction also aims to create 1,600 jobs by mandating 900 million euros in spending on wind turbine equipment plants. "In the context of other tenders seen in Europe, this is definitely one of the biggest tenders we have seen," said Christian Kjaer, policy director at the Brussels-based European Wind Energy Association (EWEA), an industry group. "We have seen those (auctions) more in the United States and Canada," he said.

The project will provide enough power for about 750,000 homes and is equal to about a quarter of wind energy installed last year in the 25-nation Europe Union, according to EWEA figures. The nation of 10 million people imports about 86 percent of its power, one of the highest levels in Europe, and is aiming to harness winds off the Atlantic Ocean and other renewable sources to counter rising fuel costs.

Portugal is also looking to wind to help meet its goals under the UN s Kyoto Protocol, which aims to trim the output of greenhouse gases, mostly carbon dioxide, which are blamed for global warming. Portugal s emissions surged almost 37 percent from 1990 to 2003, the third-highest increase in the world, according to UN figures.

IMPORTANT MOVE
The bidding "is an important move for a bigger bet in renewables, to meet the Kyoto goals and at the same time create some industries", said Helena Barbosa, an analyst with bank Caixa Geral de Depositos (CGD). An Economy Ministry spokesman said about six consortiums could bid but declined to name them. One announced bidder includes builder Mota-Engil, local energy company Galp Energia, and Enersis, a wind power company bought by Australian investment group Babcock & Brown last year.

Spanish partners power company Iberdrola and wind energy firm Gamesa also are expected to bid. They announced plans to build Portuguese wind turbine plants in January. Other possible bidders include partners Enel of Italy and Spanish power company Union Fenosa, and a consortium grouping Energias de Portugal (EDP), Germany s Enercon and Generg, partly owned by French utility Suez, news reports have said. The project calls for a first phase of 1,000 megawatts of capacity and a second of 500 megawatts. The winner is expected to be announced during the summer.

The complexity of the bid, which includes creating a 35-million-euro technology innovation fund, had turned some potential bidders away, CGD s Barbosa said. Besides wind, Portugal s energy plans range from the world s first commercial wave farm to putting a power dam on its last big undammed river, the Sabor. A licence has also been granted for what would be the world s biggest photovoltaic solar energy plant.
(Planet Ark, 01/03/06)