Transcript Brett Perlman

Energy Technology
R&D Funding
November, 2004
Key Energy Technology Investment Trends

General Trends
– Overall funding in the U.S. for energy technology has declined from a high of around $6
billion in the early 1990s to around $5 billion. This is a 25 year low when viewed across a
longer period of time stretching back into the mid 1980s.
– While there appears to be a growing consensus in the governmental and academics
committees that the U.S. is not currently investing enough in energy technologies to address
future needs, funding has continued to decline
– Public and private sector funding for energy technology is roughly split with public sector
funding accounting for 56% of the effort and private sector funding accounting for 43%

Private Sector Funding
– The private sector invests less than 1% of sales in energy R&D (estimates range from between
.03 and .05 percent). This figure is well below other industries, particularly in the
pharmaceutical and IT area
– Funding for collaborative research organizations, such as EPRI, have declined particularly in
the area of strategic, as opposed to applied, R&D
– Private sector investments in energy efficiency and renewables have increased while
investments in fossil fuels and nuclear have decreased
Public Sector Funding
– Public sector energy research funding has declined 58 percent over a fifteen year period
– Funding for fossil and nuclear energy research has declined while renewable energy has
remained flat

Private Sector R&D Investment
R&D as % of Net Sales by Industry
Percent
Drugs/Medicine
11
Prof./Science Industry
11
Comm. Equipment
10
Services
8
Transp. Equipment
6
Industrial Chemicals
4
Stone/Clay/Glass Products
2
Primary Metals
1
Energy
1
Source: Margolis and Kammen
Government Energy R&D Budget
Government Energy R&D Budget
Billion 1995 US$
-58%
7.0
6.0
-20%
5.0
4.0
3.0
-65%
2.0
-6%
-89%
1.0
D = +129%
0.0
Switz erland
Japan
France
-12%
-32%
-53%
Spain
Netherlands
Italy
1980
US
1995
Note: Government energy R&D budgets for selected IEA countries showing the difference in spending D between 1980
and 1995. Data for France before 1990 are unavailable, and while we display 1990 and 1995 data for France, this
comparison likely understates the decline in R&D funding in France.
Germany
UK