ABSTRACT
Energy innovation is critical to solving many of the energy and environmental challenges we face today, from reducing the risks of climate change to lowering the costs of alternative energy sources. While there is no shortage of ideas that could be a part of our energy future, a major obstacle stands in the way of implementation: proving that these good ideas actually work and are, therefore, worth an investment. The private sector underinvests in technology demonstration because of the expense and uncertainties involved; at the same time, previous demonstration programs carried out by the Department of Energy have met with mixed results. This paper proposes a series of best practices for government support of U.S. technology demonstration and a new institution, the Energy Technology Corporation, that would be responsible for managing and selecting technology demonstration projects. A well-designed technology demonstration program carried out by an organization with the appropriate authority, tools, and expertise would go a long way towards accelerating the process of energy innovation.
