The federal government uses both expenditures and tax breaks to subsidize energy research and encourage investment.  A majority of the subsides are directed toward renewable sources of energy.  

The Energy Information Agency (EIA) reports that, during 2010, approximately 55.3% of all federal subsides relating to electricity generation and transmission were directed toward renewable sources of energy.  That year, 21.0% of those subsidies were directed to nuclear power, 10.0% to coal, 8.2% to electricity transmission and distribution, and 5.5% to natural gas.

When subsidies are compared based on the relative amount of electricity generated by particular sources of energy, the tilt toward renewables is even more pronounced.  Subsidies directed toward coal amounted to slightly more than $0.64 per 1,000 kw-hour of electricity generated by coal.  Subsidies to natural gas electricity generation were slightly less than $0.64 per 1,000 kw-hours.  Nuclear energy fared somewhat better, receiving subsidies totaling about $3.10 per 1,000 kw-hours.  But renewables received much more, about $15.43 per 1,000 kw-hours.

Renewables also received the largest share of subsidies for non-electrical power, such as fuel used in transportation.  Biomass and biofuels received 73.2% of all federal subsidies for non-electrical power in 2010, and other renewables received an additional 4.5%.  The portion of those subsidies that were directed to natural gas and petroleum liquids was 20.7%.  And again, renewable sources of energy do even better when the amount of  subsidies directed toward different sources of energy are compared based on the relative amount of non-electrical power the U.S. derives from those sources of energy.  Subsidies relating to natural gas and petroleum liquids were approximately $75.83 per million BTUs of power generation in 2010.  In contrast, subsidies for biomass and biofuels were about $1975.71 for million BTUs, and subsidies for other renewables were about $2,600.00 per million BTUs.

The tables below summarize data from the EIA report.

Federal Subsidies Relating to Electrical Power

Federal Subsidies for Fuel for Non-electrical Power

I'd be interesting in hearing readers' views on federal subsidies.  Should the federal government: (1) distribute subsidies somewhat evenly between energy sources; (2) give the bulk of subsidies to well established and proven energy sources, such as petroleum, coal, and nuclear power; (3) give the bulk of subsidies to less established energy sources, such as renewables; or (4) eliminate all subsidies.  I can see arguments in favor of each alternative.