Regional Clean Energy Innovation Partnerships. Lynn Orr Under Secretary for Science and Energy U.S. Department of Energy

Transcription

1 Regional Clean Energy Innovation Partnerships Lynn Orr Under Secretary for Science and Energy U.S. Department of Energy Presentation to the Regional Clean Energy Innovation Forum at Purdue University June 9, 2016

2 The Energy Challenge Economic Security: Cost efficient energy systems Environmental Security: Much lower GHG emissions and other pollutants Energy Security: Multiple supply options and are robust and resilient Opportunity: Create and manage linked, complex systems that deal with all three challenges 2

3 Mission Innovation Commitment of US and 19 other world leaders to commit to a doubling of public investment in clean energy R&D over next 5 years The 20 countries represent 75% of the world s CO2 emissions from electricity, and more than 80 percent of the world s clean energy R&D investment Within DOE, new funding in FY 2017 for MI will be focused on early stage research and development 3

4 Regional Clean Energy Innovation Partnership $110M requested in FY 2017 President s Budget Expand Innovation Opportunities by Fostering regional ecosystems Regionally-designed and led innovation agendas Complement current DOE national and fuel-specific R&D programs Congress has not approved separate new budget, but Senate Report encourages working through existing programs, including national laboratories, to encourage greater regional collaborative efforts. 4

5 Regional Partnerships: Senate Report Language The Committee urges the Department to utilize investments through existing regional capabilities that include industry, universities, and state and regional economic development assets. The Committee further encourages the national laboratories to expand their geographic outreach through people and access to specialized equipment and user facilities in order to contribute to the success of these regional initiatives. 5

6 Why Regional-Level Innovation Initiative? The National Research Council s 2012 Report, Rising to the Challenge, articulated the rationale: Historically, federally funded R&D has not been connected to state and regional industrial development. Bridging that gap can create the local talent and technology base needed to convert these U.S. investments into domestic companies, industries, and jobs. Private businesses and local education institutions and economic-development agencies are in the best position to identify opportunities, gauge competitive strengths, and mobilize wide community support for regional cluster initiatives. Regional innovation cluster initiatives should be built upon existing knowledge clusters and comparative strengths of a geographic region. Existing regional ecosystems in New England, the Chicago region and Silicon Valley have led the way in creating the template for regional partnerships 6

7 Power Generation Sources and Water Withdrawals for Power Generation Vary Greatly by Region Alaska/Arctic 60 Mgal/day 3,130 gal/mwh NETL 200 Mgal/day 370 gal/mwh Northwest North Central 39,890 Mgal/day 20,630 gal/mwh Midwest Northeast 14,000 Mgal/day 19,160 gal/mwh SNL West 3,240 Mgal/day 4,370 gal/mwh Mid-Atlantic NETL 35,320 Mgal/day 17,410 gal/mwh 6,740 Mgal/day 7,010 gal/mwh Southwest/Central Southeast 40,840 Mgal/day 16,780 gal/mwh Hawaii 656 Mgal/day 22,097 gal/mwh KEY (WATER DATA) Water Withdrawal for Power Generation (Mgal/day) Water Withdrawal Intensity of Power Generation (gal/mwh) Most 17,510 Mgal/day 9,340 gal/mwh Least Water Withdrawal Southeast, Midwest Alaska/Arctic, Northwest Water Intensity Hawaii, Midwest Northwest, Alaska/Arctic KEY (GENERATION SOURCE DATA) Coal Natural Gas Nuclear Hydroelectric Conventional 1 Non-Hydro Renewables 2 Other 1 Includes Wind, Solar, Biomass, Geothermal 2 Includes Petroleum, Other Fossil Fuel Gases, Pumped Storage, Non-Biogenic Municipal Solid Waste, Batteries, Hydrogen, et al. Sources: EIA, 2014 data from Net Generation by State by Type of Producer by Energy Source (EIA-906, EIA-920, and EIA-923), October 21, USGS, EIA data via Maupin, M.A. et al., 2014, Estimated use of water in the United States in 2010: U.S. Geological Survey Circular 1405, 56 p., 7

8 Notional Structure of Regional Partnerships Large-scale multi-state regions (perhaps up to 10) Not-for-profit entities (preferably consortia) Partnerships can include state and federal governments, universities, industry and national laboratories Serve as planning and funding entities; no bricks-and-mortar or inhouse R&D Broad latitude to set priorities across all clean energy technologies based on regional needs, opportunities and R&D capabilities Single annual DOE funding stream based on annual program plans Network with other federal and non-federal entities (e.g. State Green Banks) and the private sector. 8

9 Regional Innovation Partnerships: Possible Activities Issue R&D grants/contracts Support regional competitions/prizes Offer credit enhancements to help attract private patient capital for commercial start-ups Provide data and analysis to support innovation activities Connect education and job training with innovation opportunities Assist start-ups with facilities and project management Regional Partnerships are not research performers, they are research coordinators! 9

10 Regional Partnerships: Ecosystems Complement DOE Programs Leadership from non-federal stakeholders Key priority setters and co-funders Partnership Boards serve critical role in integrating regional issues Closer interactions at local/state/regional levels Greater integration of localized strengths, preferences, initiatives, leaders, institutions Direct connection to end-user and market: Stronger connection to end-to-end activities, including investments, scale-up, deployment decision-makers More flexible funding mechanisms and processes Upfront pooling of funds: Longer-term portfolio engagement than project-specific cost-sharing Flexibility: Expanded potential range of RD&D activities, mechanisms, criteria Speed: Smaller, flatter organizations with faster decision-making, procurement processes Diversity of approaches Inherently cross-sectorial: Activities not organized or directed by fuel type/technology Broader scope: Multiple regions will likely select more, different focus areas and activities than conventional DOE programs/platforms 10

11 Questions to Open the Discussion 1. What are some of the key priorities for an energy technology innovation agenda in the Midwest Region? 2. How can a regional partnership consortium advance the region s innovation process? 3. How can we build upon current DOE programs and business models to achieve a regional partnership that promotes an innovation ecosystem for the Midwest Region? 11