Renewable Energy Subsidies & Fossil Fuel Phase-Out

Electricity distribution utilities in India are currently unable to cover the cost of their operations from the sale of electricity. This report presents the findings of a household survey that sheds light on the awareness and views of different socioeconomic and geographical groups regarding electricity subsidies and electricity tariff reform. It concludes that there is a significant lack of awareness of the existence and size of electricity subsidies, although subsidy reform is a tough sell. At the same time, surveyed households recognize that higher power prices would have significant negative impacts on their daily activities, and some of them show willingness to pay for a more reliable power supply.

If we aim to reduce global emissions in order to limit global warming to less than 2°C above pre-industrial levels, then the energy sector is of paramount importance. Many countries and regions are making this switch: from subsidising fossil fuels and towards investing in sustainable energy. This report describes how Ethiopia, Morocco, Peru and the Philippines have reformed their subsidies. It also describes how countries including Denmark, Finland, Norway and Sweden have introduced innovative policy instruments to encourage switching towards  renewable and sustainable energy.

This report seeks to assess the cost to the Chinese government, in terms of subsidies, of operating and investing in coal-fired electricity generators, the predominant source of electricity in China.

As part of its work on energy policy and sustainable development in Indonesia, the Global Subsidies Initiative publishes a regular briefing on issues related to energy subsidies.

Over the last 10 years, China has seen an unprecedented deployment of wind power, with capacity growing from 1.26 gigawatts (GW) in 2005 to 91.4 GW at the end of 2013. This report takes a closer look at the drivers behind the impressive wind power development in China in order to understand the complex connection between the policy goals, policy measures and development impact. In particular, it considers two related issues that have been encountered—curtailment of generation and delays in connection of projects—and how these are being addressed. The report aims to identify the lessons to be learned to inform future policy measures in China and elsewhere.

This report offers a summary of several countries’ experiences implementing energy policy shifts in an area of particular interest to China: the transition away from coal to cleaner fuels and a low-carbon economy. Using IISD’s “window of opportunity” framework, these case studies are analyzed in terms of the four critical elements of success: context, champions, concerns and complementary policies. In the second part of the briefing note, we apply the same framework to China’s own experiences in phasing out coal around Beijing. The briefing note aims to assist policy-makers, the expert community, media and all others interested in the lessons learned that countries can exchange and benefit from international experience, including within the G20 and UNFCCC processes.