Renewable energy subsidies in India dropped by 35%

According to a new study by the International Institute for Sustainable Development (IISD) and the Council on Energy, Environment, and Water (CEEW), India’s renewable energy subsidies fell 35% between 2016-17 and 2018-19.

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The report was titled “Mapping India’s Energy Subsidies 2020” which said that the support for renewable energy was to increase again. But the COVID-19 pandemic has made it critical to stay on track.

Policy decisions such as the solar safeguard duty and tariff caps on auctions meant that there was a slowdown in new capacity addition and as a result of lower state subsidy outgo as well.

Those resources post-COVID-19 will present a good opportunity for the government to rein in specific fossil fuel subsidies and create more fiscal room to promote renewables and other welfare schemes.

It also said that the oil and gas subsidies, however, increased by 65% in the same period.