EIA Report: Federal Energy Subsidies, Support Double Between 1999, 2007

April 26, 2008 // Published as a news service by IHS

This amount is more than double the level, in real terms (2007 dollars), of the estimated $8.0B shown in the last EIA report on subsidies completed in May 2000.

Tax expenditures, one of four types of subsidies examined in the report, have more than tripled since 1999, rising from $3.2B in 1999 to more than $10.4B in 2007.

This report, which was undertaken at the request of Sen. Lamar Alexander, shows that federal electricity subsidies and support per unit of production, dollars per megawatthour (MWh), varied widely by fuel in FY2007.

Coal-based synfuels (refined coal) that are eligible for the alternative fuels tax credit, solar power and wind power received the highest subsidies per unit of generation, ranging from more than $23 to nearly $30 per MWh of generation.

The smallest subsidies on a per unit basis were for coal, natural gas and petroleum liquids and municipal solid waste, all at less than $0.45 per MWh of generation.

The full Federal Financial Interventions and Subsidies in Energy Markets 2007 report can be found on the EIA web site.