Saturday, June 29, 2024

'Renewable Energy Still Dominates Energy Subsidies In FY 2022'

"Federal subsidies to support renewable energy formed nearly half of all federal energy-related support between fiscal years 2016 and 2022. Traditional fuels received just 15 percent of all subsidies between FY 2016 and FY 2022, while renewables, conservation and end use received a whopping 85 percent."

The Energy Information Administration found that subsidies for renewable energy more than doubled between FY 2016 and FY 2022, occurring before the Inflation Reduction Act became law in 2022 that increased renewable subsidies.

In FY 2022, solar subsidies totaling $7.5 billion overtook biofuel subsidies-the largest beneficiary of tax incentives in FY 2016, having total subsidies of $3.7 billion, with wind a close third at $3.6 billion in total FY 2022 subsidies.

Despite renewable energy receiving over half the federal subsidies in FY 2022, EIA reports that fossil energy in the form of coal, oil, natural gas and natural gas plant liquids made up 79.1 percent of primary energy production in FY 2022.

Biofuels represented 42 percent of total subsidies for renewable energy in FY 2022 while renewable energy used in electricity production represented the other 58 percent.

The largest electricity-related federal energy subsidies were for renewable energy since subsidies for wind and solar each exceeded subsidies for coal, natural gas and petroleum, and nuclear.

From FY 2016 to FY 2022, nearly half of federal energy subsidies were associated with renewable energy, and 35 percent were associated with energy end uses. 

https://www.masterresource.org/renewable-energy-subsidiesdebt-reduction/renewable-energy-subsidies-fy2022/

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