The fall in oil prices has provided an opportunity and incentive for energy pricing reform and brought the overall estimate for fossil-fuel subsidies down to $325 billion in 2015, from close to $500 billion in 2014. Subsidies to renewable energy rose in 2015 towards $150 billion, mostly in the power sector, and the effectiveness of the subsidies has also been increasing, with reductions in technology costs. Whether this shift continues depends on the resolve of governments to persist with pricing reform even once fossil-fuel prices start to rise; and on the speed at which renewable energy projects become economically competitive without any state support.
Source: World Energy Outlook 2016
30 November 2016