Vol: 14, Issue: 1 2024

Page: 088-093

Assessing The Role Of Government Subsidies In Boosting Renewable Energy Adoption

Neelam Singh

http://doi.org/10.37648/ijtbm.v14i01.011

Renewable energy solutions (RES) often get support from the government in the form of teaching materials, institutional support, or financial assistance. The RES field participants have a significant challenge in the form of policy coherence. When investments are made, it is essential to offer a prognosis for whether or not future policies will be implemented. The appraisal of investments has to include larger risk buffers in situations when the future is uncertain. For a number of reasons, including abrupt and unexpected changes in legislation, uncertainty makes it more difficult to appeal to investors for financial backing. In this research, we investigate the consequences of policy support discontinuities by using a case study methodology throughout the investigation. In 2022, feed-in tariffs were implemented in Ontario, which resulted in a significant increase in the number of people participating in the program. The community of renewable energy sources suffered a loss of trust in the government's capacity to provide constant support for the sector when the subsidies were dramatically decreased in 2023. Several weeks before the announcement of a substantial change in bioenergy policy, the Minister of the Environment of Norway formally unveiled a vast new biodiesel factory. This event took place in Norway. The investors suffered a loss of virtually all of their cash as a consequence of this, which led to the closure and rearrangement of the new facility. Due to the fact that its political credibility has been weakened, the Norwegian government is now having a more difficult time attracting private investment in this sector. Although we do not disagree with the need of making changes to policies, we do feel that the procedure that is used to put these changes into effect is very important.