Global renewable energy subsidies to hit USD 230bn in 2030 - IEA

Nov 13, 2014 - Worldwide subsidies for the renewable energy sector will jump to almost USD 230 billion (EUR 185m) in 2030 from USD 121 billion in 2013, the International Energy Agency (IEA) says in a new report.

For comparison, global subsidies for renewable energy projects rose 15% between 2012 and 2013. Once they surge to the projected amount in 2030, they are set to decline to USD 205 billion in 2040 as support for recently-deployed capacity will end, IEA said in its Medium-Term Renewable Energy Market Report 2014. This figure comes under the agency’s New Policies Scenario, which suggests that the European Union (EU) will be the biggest supporter of renewables till 2040.

By technology, solar photovoltaic (PV) schemes will continue to get the largest portion of subsidies until 2040. Subsidies for the onshore wind segment are forecast to reach the highest levels just before 2020 and decrease steadily after that.

Last year, five countries in the world grabbed almost 70% of all subsidies for renewables. Projects in Germany received USD 22 billion, those in the US were backed by USD 15 billion, while in Italy the support was USD 14 billion. Spain and China got USD 8 billion and USD 7 billion, respectively.

(USD 1.0 = EUR 0.803)

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