A subsidy is monetary assistance granted by the government to consumers and producers in support of a venture that is in the interest of the public. A subsidy can come in the form of direct cash transfers, tax exemptions, rebates, and price controls.
Many governments around the world are offering subsidies to phase out fossil fuels and expand the renewable energy market. Each country is using a different strategy to encourage this.
United States- The vast majority of federal subsidies for fossil fuels and renewable energy supported energy sources that emit high levels of greenhouse gases when used as fuel.The federal government provided substantially larger subsidies to fossil fuels than to renewables. Subsidies to fossil fuels—a mature, developed industry that has enjoyed government support for many years—totaled approximately $72 billion over the study period, representing a direct cost to taxpayers.
Russia- As of 2010, Russia produced .8 percent of its country’s energy. For the first time ever Russia is offered state-backed support for renewable energy. This new subsidy program states that the plant must have a minimum 5 MW output and developers can receive payments for 15 years so long as they agree to provide power during peak demand hours.
China- Worlds largest manufacturer in wind turbines and in solar panels. China intends for wind, solar and biomass to represent 8% of it electricity generation capacity by 2020. This compares with the less than 4% now in China and the US. China also seeks to dominate in the energy exports. The US is claiming that the actions taken by the Chinese government to further their renewable sector goes against international laws.
Germany- Germany and most of the EU has begun phasing out nuclear reactors has forced subsidy payments to rewable projects with aid depending on energy source.
Sweden- Sweden has put in place a quota model, requires utilities to supply fixed levels of renewable power or buy tradable credits to make up the difference.
“Energy Subsidies Favor Fossil Fuels Over Renewables” Environmental Institute http://www.eli.org/Program_Areas/innovation_governance_energy.cfm
Clover, Ian. “Russia Offers First Ever Subsidies for Renewable Energy” PV Magazine. October 3rd 2013.
“China Announces Anti-Subsidy Duties on US Solar-Grade” http://ictsd.org/i/news/biores/176368/#sthash.6VTWglRb.dpuf