Should the government subsidize green power?

Climate change hysteria is at a peak at present. Bowing to the almost militant green lobby, even the Indian government has resolved to cut down on CO2 emissions from the power plants of the nation, even as the efficacy of the compound as a greehouse gas is yet to be established. Part of the administration`s efforts in this direction utilizes a subsidy regime targeted towards installation of generation units based on renewable or inexhaustible resources, such as the sun, water and wind.

• Such subsidies may take the form of outright cash grants or preferentially higher notified tariffs. Unfortunately, these projects do not attain viability even with these measures, as a result of which they are often  combined with compulsory purchase mandates for procurers.
• Proponents of such a regime argue that the government should have a role to play in encouraging nascent technology to enter the mainstream. While contributing towards India`s commitments in the climate-change sphere, renewable energy is seen as the solution to imminent peak oil, laggard coal production and the threat of uranium supply disruptions. Without subsidies, they claim, green technology, due to its higher per unit cost of generation, will never take off, putting to risk India`s long-term energy future.
• The problem with an assertion like this is that subsidizing bad behavior always gets you more of the bad bahavior. While drunk on public largesse, renewable technology developers will not have enough incentive to increase operation efficiencies to those comparable with conventional generation methods. Further, forcing procurers to purchase the still-expensive renewable power will only lead to higher tariffs, against the principles of "Power for All".
• In addition, renewable generation cannot be counted on to deliver when needed-- nothing proves this point more than the absolute lack of renewable trades on the power exchanges, where the opportunity for developers to make money is enormous, even without government support. 
• Thus, it seems that the government is chasing merely a pipedream and, in the process, diverting investments away from more profitable ventures.