Unintended Consequences of Push for Renewal Energy Funding – USA

Background to Renewal Energy Policy

Recognizing that world has global non-renewal energy resources are fast depleting, developed countries are focusing on renewal energies with great vigor for past few decades. This trend has accelerated in the recent year in U.S. the largest consumer of energy, with liberal views becoming more fashionable.

Policy Intentions are good, however, set the stage for unintended Consequences

The need and goals for renewal energy are not challenged, however it is worthwhile to review current policies and their implementation to identify unanticipated unintended consequences and determine how these can be avoided.

A. unintended Consequences

Technology not ready.

Non-renewal energies and their related technologies come in various types and sizes. In the rush to fund cutting-edge technology much of money has gone to projects, which are good at Lab level, however NOT scalable to economic levels.

A. Suggested Suggestions to overcome Unintended Consequences

Use Scalability as a major criteria in funding technologies, which will ensure that technology moves from Lab to Demo to Market in a more predictable manner.

B. Unintended Consequences 

More muscle to Lobbyist and power brokers

It is well-known that Government (or rather tax-payers) money is never given to the most deserving cause but to the one with most lobbying muscle in Washington. Funding for green technology is and CANNOT be different. Obviously, it is now coming out that Solyndra funding was managed by power brokers within and outside the Adminstration.

B. Suggested Suggestions to overcome Unintended Consequences

All Government funding to emerging technology should be “auctioned” by matching private sector funding. So each $ 1 of Government funds should be matched by open private sector bidding, i.e. say Government funds of $1 matched by $ 2 , $1.5 or $ 1 of private sector funding.

With private sector funding based on “due diligence”  there is greater possibility  that the winner with $ 2 bid, will bid on the correct technology and management team.


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