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Bloomberg
Fossil-fuel subsidies may actually rise in Europe because of the switch to green energy. European Union governments will have to pay out increased compensation for closing coal-fired plants, according to a report by Bloomberg New Energy Finance. Several countries are also rolling out programs that pay power plants to guarantee electricity supplies, mechanisms that often favor fossil-fuel generation.
Renewables subsidies still vastly outweigh fossil-fuels in the bloc though with the former receiving 61 billion euros ($75 billion) in costs from governments in 2016 compared with 4.9 billion euros of support for coal, oil and natural gas, BNEF said. Although total subsidies have risen, so has their value for money. Every 1 million euros of subsidy in 2016 backed 10.3 gigawatt-hours of total subsidized renewable power generation compared with 7.4 gigawatt-hours three years earlier.
Governments are still looking to limit the 7 percent increase in green energy subsidies since 2013. Portugal and Denmark have laid out plans to phase out financial assistance completely once existing contracts end. Britain has effectively ruled out subsidies until 2025.