Dynamic Approach to Renewable Energy Commercialization
Dynamic Ecosystem Approach to Renewable Energy Commercialization
NIREC has released a whitepaper promoting a dynamic ecosystem approach for the development and commercialization of renewable energy technologies.
While many may favor a development theory that relies on a static ecosystem (or network) and routine replication of knowledge drawn from case studies, NIREC's Director of Operations Li Han Chan and Entrepreneur-In-Residence Nicola Kerslake argue that a dynamic ecosystem (or network) developed uniquely for each new innovation helps circumvent inadequacies in the broader commercialization infrastructure and provides the basis for the "technology pull" approach used by NIREC for renewable energy commercialization.
"With renewable energy technologies, we can't rely on results achieved in one ecosystem to replicate in other ecosystems," said Chan. "The complex relationships, technology variables, and dynamic nature of commercialization create unique problems and unique problem-solving needs for each ecosystem."
To address the financial and technology development challenges faced in renewable energy development, NIREC employs a philosophy that first identifies viable technologies and "pulls" them through the development process by providing funding and pre-commercialization assistance. NIREC's experience creating dynamic ecosystems unique to each project has led to success, progressing each of its projects to the next level and to threefold follow-on funding.
Kerslake presented this methodology at the 2010 Annual meeting of the American Institute of Chemical Engineers (AIChE), an educational forum for chemical engineers interested in innovation and professional growth.
The paper acknowledges that renewable energy industries face more severe commercialization challenges than other industries at the same stage of development because of competitive, regulatory, and financing pressures.
NIREC recommends several actions to improve renewable energy innovation, including carbon pricing to reflect the societal cost of fossil fuel emissions, increased government funding for development and demonstration activities, funding for commercialization infrastructure to ease private sector financing hurdles, commercialization incentives in the form of grant opportunities, researcher career path and tenure track recognition of commercialization activities, and an increase in programs whereby federal and state governments represent early adopters of new energy technologies.
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