Skip to main content

60 Years of Energy Incentives – An Analysis of Federal Expenditures for Energy Development from 1950-2010

In 2008, NEI published a study based on an analysis by the Management Information Systems, Inc. that detailed the amount of subsidies that go to each energy source. The study has just been updated and now shows 60 years of energy incentives. Here’s the intro:

With concern about the price and availability of energy increasing, public interest in the role of federal incentives in shaping today’s energy marketplace and future energy options has risen sharply. That interest has met with frustration in some quarters and half-truths in others because of the difficulty in developing a complete picture of the incentives that influence today’s energy options.

The difficulty arises from the many forms of incentives, the variety of ways that they are funded, managed and monitored, and changes in the agencies responsible for administering them. It is no simple matter to identify incentives and track them through year-to-year changes in legislation and budgets over the 50-plus years that federal incentives have been a significant part of the modern energy marketplace.

The findings indicate that the largest beneficiaries of federal energy incentives have been oil and gas, receiving more than half of all incentives provided since 1950. The federal government’s primary support for nuclear energy development has been in the form of research and development (R&D) programs, one of the more visible types of incentives identified. In the past 10 years, federal spending on R&D for coal and renewables has exceeded expenditures for nuclear energy R&D.

Below are two key charts showing the latest numbers on pages 10 and 12:

image

image

And a little bit more on page 17:

The common perception that federal energy incentives have favored nuclear energy at the expense of renewables, such as wind and solar, is not supported by the findings of this study. The largest beneficiaries of federal energy incentives have been oil and gas, receiving more than half of all incentives provided since 1950.

The federal government’s primary incentive to nuclear energy has been in the form of R&D programs, one of the more visible types of incentives identified. Since the end of funding for the breeder reactor program in 1988, federal spending on nuclear energy research has been less than spending on coal research and since 1994 has also been less than spending on renewable energy research.

The analysis takes you back into some good history of U.S. energy policy since 1950. There is a telling story on renewables on page 52 and some interesting incentive figures for each nuclear technology (light-water reactors, heavy-water reactors, gas cooled, sodium cooled and others) on page 35. Make sure to take a gander at the full report.

Comments

Popular posts from this blog

Knowing What You’ve Got Before It’s Gone in Nuclear Energy

The following is a guest post from Matt Wald, senior director of policy analysis and strategic planning at NEI. Follow Matt on Twitter at @MattLWald.

Nuclear energy is by far the largest source of carbon prevention in the United States, but this is a rough time to be in the business of selling electricity due to cheap natural gas and a flood of subsidized renewable energy. Some nuclear plants have closed prematurely, and others likely will follow.
In recent weeks, Exelon and the Omaha Public Power District said that they might close the Clinton, Quad Cities and Fort Calhoun nuclear reactors. As Joni Mitchell’s famous song says, “Don’t it always seem to go that you don’t what you’ve got ‘til it’s gone.”
More than 100 energy and policy experts will gather in a U.S. Senate meeting room on May 19 to talk about how to improve the viability of existing nuclear plants. The event will be webcast, and a link will be available here.
Unlike other energy sources, nuclear power plants get no specia…

Making Clouds for a Living

Donell Banks works at Southern Nuclear’s Plant Vogtle units 3 and 4 as a shift supervisor in Operations, but is in the process of transitioning to his newly appointed role as the daily work controls manager. He has been in the nuclear energy industry for about 11 years.

I love what I do because I have the unique opportunity to help shape the direction and influence the culture for the future of nuclear power in the United States. Every single day presents a new challenge, but I wouldn't have it any other way. As a shift supervisor, I was primarily responsible for managing the development of procedures and programs to support operation of the first new nuclear units in the United States in more than 30 years. As the daily work controls manager, I will be responsible for oversight of the execution and scheduling of daily work to ensure organizational readiness to operate the new units.

I envision a nuclear energy industry that leverages the technology of today to improve efficiency…

Nuclear: Energy for All Political Seasons

The electoral college will soon confirm a surprise election result, Donald Trump. However, in the electricity world, there are fewer surprises – physics and economics will continue to apply, and Republicans and Democrats are going to find a lot to like about nuclear energy over the next four years.

In a Trump administration, the carbon conversation is going to be less prominent. But the nuclear value proposition is still there. We bring steady jobs to rural areas, including in the Rust Belt, which put Donald Trump in office. Nuclear plants keep the surrounding communities vibrant.

We hold down electricity costs for the whole economy. We provide energy diversity, reducing the risk of disruption. We are a critical part of America’s industrial infrastructure, and the importance of infrastructure is something that President-Elect Trump has stressed.

One of our infrastructure challenges is natural gas pipelines, which have gotten more congested as extremely low gas prices have pulled m…