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by belorn 951 days ago
There is no single solution to reduce the massive amount of energy subsidizes. We could however start to demand a bit more efficiency and targeted approach that more align with political will of the citizens that pays the taxes.

To put down to facts, Europe paid 172 billions in 2021 on energy subsidies. This is 54% increase since 2015. 76 billions went to renewables. Between 2019 and 2020 the amount going to renewables increased by 7%, while between 2020 and 2021 it decreased by 3%. The second largest recipient of subsidies was fossil fuel energy with 50 billions. Subsidies for nuclear has remain mostly stable since 2015, sitting at around 4 billions, but with Germany closing several plants last year it has now increased to 7 billions. (The report do not consider R&D to be subsidies, so ITER is not included).

We should not try to make things "even". We should cut fossil fuel subsidies and decommission the fossil fuel plants that operate as reserve energy. The cost of high variability in the grid should not be carried through tax money. Market forces can't be applied correctly when taxes are being funneled to fix a problem caused by using high variability energy production.

Subsidies to renewables are slowly being reduced. It is no longer a given that grid connections will be given out for free and paid by taxes. Both nuclear and renewables should also carry their own weight and not have price guaranties. Companies that need those should have the cost baked into the energy price.

A solution that is acknowledged by the European report but often overlooked is energy usage reduction and increased efficiencies.

The report for those wanted to read it: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELE...

2 comments

"Firmed" renewables are cheaper than nuclear today. [1] Any nuclear project started today will finish ~2040 and then not recoup the investment until ~2070. If nuclear is uncompetitive today, how do you think it will fare against 30 years of renewable development?

Lets also remove the Price–Anderson Nuclear Industries Indemnity Act [2] with equivalents across the world so the nuclear industry has to bear the true insurance cost.

[1]: https://www.lazard.com/research-insights/levelized-cost-of-e...

[2]: https://en.wikipedia.org/wiki/Price%E2%80%93Anderson_Nuclear...

Nuclear accidents, flooding and forest fires are three areas where insurance do not cover the cost. Fossil fuel usage are also exempted from paying insurance regarding climate change and health costs associated with pollution. Wind power are mostly exempted from paying damages when hurting endangered wildlife.

I would not be completely against demanding that all commercial activity in the energy sector must cover every negative effect on society and the environment. It would in effect ban all fossil fuel, nuclear, and hydro. Would be a fair price to pay for getting rid of fossil fuels.

> so the nuclear industry has to bear the true insurance cost

How expensive is a resounding "No" by insurers?

What exactly is made better by paying more to insurance cos? Beyond a point insurance is just a drain on productivity.
Do you have any idea by how much installed renewable capacity increased during the periods you mentioned? Hint, way, way more than the subsidies...