Funding for Renewables Projects in the Public and Private Sectors

 

In the last few months, I’ve tried to learn more about the huge, long-term role that the National Renewable Energy Laboratory (NREL) plays in supporting the development of clean energy technologies.  I see the work they’ve performed with solar energy leader Solyndra to be the perfect example.  Here’s a case where public support enabled a private company to raise vitally important additional capital.  Had NREL not been there (with
over $700 million as I recall), their initial private investors may have been scared away.  NREL’s robust commitment showed these investors that they had deeply committed partners, which, I’m sure, made them feel much safer in making commitments of their own.

Of course, most companies that ask for money receive none at all -- let alone $700 million.  But how does this process work?  Is it fair?  Why do certain types of companies seem to be favored over others?  It seems that perhaps mature renewables technologies, like PV (where Solyndra plays), may be favored over newer ideas.  (Solyndra’s well proven breakthrough in CIGS (copper indium gallium (di) selenide), generated significant improvement in efficiencies and reductions in cost).


Unfortunately, the workings of this process are not clear -- though perhaps that’s by design.  As an example, consider solar thermal/CSP (concentrated solar power).  PV and wind have a several-decade head-start over CSP and other nascent technologies.  I interviewed CSP industry leader Ausra's founder David Mills for my book on renewables, and he told me that Ausra had gotten to round #2 in one of these DoE contests, but that they didn't get to the finals.  I asked if he resented being turned down, and -- perhaps simply out of gentlemanliness and good sportsmanship – he said that he didn't, but indicated with a smile that he plans simply to try again another time.

I try to stay in communication with all the readers at 2GreenEnergy on this subject, and I can't count the number who have requested our insights on this matter.  Regrettably, all I can turn up are anecdotal incidents similar to those above.  If readers here wouldn’t mind sharing their own experiences with this process, I’m sure many people would be interested. Thank you.

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