Antinuclear

Fossil fuels subsidised by Australia- how much solar we’d have if they weren’t

How Much Solar Could We Have If Fossil Fuels Weren’t Subsidised? by Giles Parkinson, editor of RenewEconomy.com.au, 26 Sept 12 How much more solar power could we have installed if we had gotten rid of subsidies for fossil fuels, and pushed them towards a new technology? According to the European Commission, nearly 10 times more than we have now.

Fossil fuel subsidies have been a continuing sore point for international organizations. The International Energy Agency and various UN bodies have been campaigning for their removal, and even got the support of the G20 group of leading economies. But little has happened.

It is estimated that the world spent up to $7.5 trillion on combustibles, fuels and electricity from 2007 to 2010. Of this, the level of direct consumption subsidies and tax break to fossil fuels amounted to $1.8 trillion, according to a joint report compiled by the IEA, OPEC, the OECD, and the World Bank.

The EC, in a report on solar PV technologies released this week, says these subsidies would have been sufficient to install some 340 GW of PV systems world-wide at the prices prevailing at the time. At current prices, it would be enough to install 610 GW. To put that figure into perspective, Australia has just below 2GW of solar PV installed, and Germany is the leading country in the world with 30GW.

The IEA has been pushing for the removal of subsidies because it says that the energy game will change “quickly and substantially” once removed. “I see fossil fuel subsidies as the appendicitis of the global energy system which needs to be removed for a healthy, sustainable development future” IEA chief economist Fatih Birol told the Financial Times recently.

The joint study estimated that energy consumption could be reduced by 600 Mtoe (million tonnes of oil equivalent) or the combined current consumption of Japan and Australia – if the subsidies are phased out between now and 2020. That consumption cut would save the equivalent of the current carbon dioxide emissions of Germany, France, Italy, and Spain. ….  http://www.energymatters.com.au/index.php?main_page=news_article&article_id=3396

September 27, 2012 - Posted by Christina Macpherson | General News