Energy

Characterizing the future performance of energy technologies can improve the development of energy policies that have net benefits under a broad set of future conditions. In particular, decisions about public investments in research, development, and demonstration (RD&D) that promote technological change can benefit from (1) an explicit consideration of the uncertainty inherent in the innovation process and (2) a systematic evaluation of the tradeoffs in investment allocations across different technologies. To shed light on these questions, over the past five years several groups in the United States and Europe have conducted expert elicitations and modeled the resulting societal benefits. In this paper, the authors discuss the lessons learned from the design and implementation of these initiatives.

This document contains February 2012 updates to our database on U.S. government investments in energy research, development, demonstration, and deployment (ERD3) through the Department of Energy. The database, in Microsoft Excel format, tracks DOE appropriations from FY 1978–2011 and the FY 2012 and 2013 budget requests and includes funding for ERD3 from the American Recovery and Reinvestment Act of 2009. It also includes several charts.

"The focus of the workshop was on the demonstration stage of the technology innovation cycle. Current policies do not adequately address the private sector’s inability to overcome the demonstration "valley of death" for new energy technologies. Investors and financiers fear that the technology and operational risks at this stage of the cycle remain too high to justify the level of investment to build a commercial-sized facility."

"There is broad political consensus that the current energy system in the United States is unable to meet the nation's future energy needs, from the security, environment, and economic perspectives. New energy technologies are required to increase the availability of domestic energy supplies, to reduce the negative environmental impacts of our energy system, to improve the reliability of current energy infrastructure (e.g., smart grid, energy storage), and to increase energy efficiency throughout the economy."

New Harvard Kennedy School research finds that energy research, development, and demonstration (ERD&D) funding by governments and 100 percent government-owned enterprises in six major emerging economies appears larger than government spending on ERD&D in most industrialized countries combined. That makes the six so-called BRIMCS countries—Brazil, Russia, India, Mexico, China, and South Africa—major players in the development of new energy technologies. It also suggests there could be opportunities for cooperation on energy technology development among countries.

The Winter 2010/11 issue of the Belfer Center newsletter features recent and upcoming activities, research, and analysis by members of the Center community on critical global issues. This issue highlights a major Belfer Center conference on technology and governance, the Center's involvement in the nuclear threat documentary Countdown to Zero, and a celebration of Belfer Center founder Paul Doty.

There is uncertainty about the ex-ante returns to research, development, and demonstration programs in the United States on carbon capture and sequestration (CCS) technology. To quantify this uncertainty, we conducted a written expert elicitation of thirteen experts in fossil power and CCS technologies from the government, academia, and the private sector. We asked experts to provide their recommended budget and allocation of RD&D funds by specific fossil power and CCS technology and type of RD&D activity (i.e. basic research, applied research, pilot plants, and demonstration plants) for the United States....On average, experts estimated that if their recommended RD&D portfolio was implemented, the capital cost of new coal plants with CCS in 2030 would decrease by 10% in addition to the cost reductions/increases that would occur by 2030 through non-public RD&D related factors.

This analysis provides an overview the Department of Energy's fiscal year 2011 energy research, development, demonstration, and deployment (ERD3) budget proposals, and lays out actionable recommendations to strengthen the effort.  Overall, the report concludes that the 7 percent requested increase in applied energy research, development, and demonstration funds, while welcome in a time of budget stringency, remains well short of the sustained investment likely to be needed to meet the energy demands of the 21st century.

"Since last year, American Electric Power Mountaineer has employed CCS on a smaller scale of about 30 megawatts and, as such, is a unique example of CCS technology working today. As CCS scales up from this small size, the risks of capture and transport are negligible, making larger plants possible. Because renewables, for various reasons, cannot be implemented at the large scale sufficient to meet the 80 percent emissions reduction goals, we must deploy CCS for larger-scale commercialization. As a crucial means of decarbonizing some industrial processes, CCS will reduce emissions across industries, allowing chemical producers, for example, to meet their targets."

Melissa Chan and Laura Diaz Anadon of the Energy Research, Development, Demonstration & Deployment (ERD3) Policy Project presented at the 2009 Annual Meeting of the Institute for Operations Research and the Management Sciences (INFORMS).