Our estimates suggest that, as of 2015, cuts
in electricity subsidies reduced annual electricity use by around 7 % relative to the scenario of no reform.
But the fact remains that solar generated just 0.10 percent of US electricity, and wind 3.5 percent, in 2012.13 This was after more than $ 50 billion in
renewable electricity subsidies over the last three decades.
Over recent years, Indonesia's fuel and
electricity subsidy reforms have made the country a leader in progress towards this commitment.
Looking forward, Indonesia could feasibly move away from fuel and
electricity subsidies entirely, turning instead to other forms of social assistance for those in need.
Oil subsidies accounted for 44 percent of total consumption subsidies (about $ 145 billion), followed
by electricity subsidies of just over $ 100 billion.
This has been the result of the country's
electricity subsidies and fair regulation.
This is a triple - win: water use drops without affecting yields, fossil fuel use declines, and the government saves up to $ 6 billion per year in diesel and
electricity subsidies.