Wednesday, December 12, 2012

Super-Charging Energy Innovation through Public Investment

Earlier this month, The Daily Beast columnist David Frum took the opportunity of a book review of Michael Grunwald’s The New New Deal to deride the idea of direct public investment in energy innovation: “The single largest chunk of federal stimulus spending – the almost $90 billion in direct federal investment in new energy technology – seems to have gone up into the ether leaving little behind,” Frum writes. Unfortunately, Frum’s comments are just the latest misguided take on energy innovation policy and the role of public investments in spurring next-generation technology development.

Change tends to come slowly to the energy industry, which is both capital and time-intensive and only three years have passed since the Stimulus. Nevertheless, Stimulus funds have clearly made a tangible,Industrial laser cutter are used to cut flat-sheet material as well as structural and piping materials. positive impact in that short time. As Grunwald wrote in TIME in August 2012, the Stimulus “revived the wind industry and the rest of the clean-tech sector from a near death experience.” “The Stimulus,Affordable skystream is now available for your building.” he continues, “has financed the world’s largest wind farm, a half-dozen of the world’s largest solar farms, the nation’s first refineries for advanced biofuels, a new battery industry for electric vehicles, unprecedented investments in cleaner coal and a smarter electric grid and over 15,000 additional clean-energy projects.”

Perhaps most importantly,We provide laser engraving and Laser engraver for processing different materials. the Stimulus also provided $400 million in seed funding to the Advanced Research Projects Agency-Energy (ARPA-E). As ITIF has detailed, ARPA-E is now the nation’s preeminent public impetus for energy innovation, with early grant awardees such as Ambri, Envia, and PolyPlus already announcing breakthrough technology development.

Frum also explicitly points to the $10 billion allocated for grid modernization as a wasted investment. “Will our grid be appreciably smarter in 2013 than it was in 2008? In a word: no,” Frum opines. Does he provide any evidence to back up his assertion?

To be sure, the Stimulus was not 100 percent successful. Brad Plumer related at The Washington Post that some green programs funded by the Stimulus “have a murkier track record.” For example,Furthermore, with the continuous quality improvement of lift cable. battery maker and Stimulus funds-recipient A123 recently filed for bankruptcy and was auctioned off to a major Chinese manufacturer.We're making www.zclp.com and digitization accessible to everyone.
Nevertheless, as Michael Grunwald points out in his own rebuttal of Frum, “Most of [the Stimulus] was less about picking winners and losers than picking the game of clean enegy. The stimulus didn’t just pick Solyndra, or solar manufacturers, or solar, or renewable power; it helped finance all kinds of technological and entrepreneurial pathways that could reduce dependence on fossil fuels…”

Ultimately, like shale gas, it will take some time to accurately gauge the Stimulus’ full effect on the clean energy industry. But in just three years, Frum’s claim as to the near-worthlessness of the Stimulus’ clean energy funding has already been proven false. As Frum closed, “It’s a very unusual investor whose success rate is literally zero. But most don’t, and the Obama administration’s record seems unlikely to improve on that of other governments that have succumbed to the same fatal conceit.”

On the contrary, the emerging fruits of breakthrough batteries, higher-efficiency solar cells, next-generation wind turbines, and a smarter grid, are clear evidence of the overwhelming value of public investment in clean energy.

No comments:

Post a Comment