Energy Technology Innovation Kelly Sims Gallagher, Ph.D. Director, Energy Technology Innovation Project Kennedy School of Government, Harvard University February 18, 2007

Outline The process of energy-technology innovation (ETI) Global investments in ETI Chinese investments in ETI U.S. government investments in ETI Concluding thoughts

“Stages” of Innovation R&D Research Development Demonstration Deployment Early deployment Widespread diffusion and uptake by market RD3

Dynamic Process Government Research Development Demonstration Deployment

Measuring Energy Innovation Quantitative vs. qualitative metrics Input metrics Output metrics Outcome metrics

Carbon Factor (carbon emissions per unit of energy use)

Global Investments in Energy Innovation

Public vs. Private No international data Best estimate is that private industry accounts for 2/3 of energy RD&D in the United States (NRC report: Energy Research at DOE: Was It Worth It National Science Foundation’s annual survey of industrial R&D shows an almost continuous decline in the 1980s and 1990s, with the 1999 levels about one-fifth of the peak value in 1980 (in real terms). What about venture capital?

Global Investments Source: Gallagher, Holdren, and Sagar 2006, “Energy-Technology Innovation” Annual Review of Environment and Resources, 31: 193-237.

China’s Investments During the Eleventh Five-Year Plan (starting Sept. 2006) MOST budget authority for energy research, development, & demonstration is about 3.5 billion RMB (approx. $425 million). Budget authority for advanced coal technology is about 0.7 billion RMB (approx. $85 million). It accounts for 21 percent of the total budget. 5 coal co-production and gasification demonstration projects planned

Source: Dr. Lifeng ZHAO, ETIP, Harvard University

U.S. Government Investments in Energy RD&D

Concluding Thoughts

Thanks ETIP is currently supported by the William and Flora Hewlett Foundation, U.S. Energy Foundation, U.S. Environmental Protection Agency Office of Transportation and Air Quality, Winslow Foundation, and an unrestricted gift from Shell Exploration and Production.