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Comparing push and pull measures for PV and wind in Europe

Ruben Laleman (UGent) and Johan Albrecht (UGent)
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Biotechnology for a sustainable economy (Bio-Economy)
Abstract
Successful technological innovation frameworks are based on synergistic packages of technology-push and demand-pull measures. As the massive deployment of premature renewable energy technologies risks becoming very expensive, the debate on the optimal trajectory of renewable technologies should explicitly consider the balance between deployment incentives and R&D efforts. This paper explores this balance regarding wind and PV technology support in Europe. Based on rather conservative estimates, we calculate future deployment costs and compare these figures to the current public investments in PV and wind R&D. We find that, today, for each Euro spent on R&D to develop future technologies, 35 to 41 Euros are spent on the deployment of existing technologies. Furthermore, private PV and wind technology companies tend to underinvest in R&D for various reasons. In an alternative scenario, we assess the optimal R&D efforts for the PV and wind sectors based on a 7% R&D-to-sales benchmark that is typical for engineering sectors. If public R&D efforts would increase according to this benchmark, and hence compensate for the private underinvestments in R&D, pull/push ratios between 6 and 8 could be achieved. This leads us to conclude that the current balance between deployment and R&D is far from optimal.
Keywords
Feed In Tariff, Pull Push framework, Energy Policy, Wind energy, Solar energy

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Citation

Please use this url to cite or link to this publication:

Chicago
Laleman, Ruben, and Johan Albrecht. 2011. “Comparing Push and Pull Measures for PV and Wind in Europe.” In Linkoping Electronic Conference Proceedings (online), ed. Bahram Moshfegh, 2706–2713. Linkoping, Sweden: Linköping University Electronic Press, Linköpings universitet.
APA
Laleman, R., & Albrecht, J. (2011). Comparing push and pull measures for PV and wind in Europe. In B. Moshfegh (Ed.), LINKOPING ELECTRONIC CONFERENCE PROCEEDINGS (ONLINE) (pp. 2706–2713). Presented at the World Renewable Energy Congress (WREC -2011), Linkoping, Sweden: Linköping University Electronic Press, Linköpings universitet.
Vancouver
1.
Laleman R, Albrecht J. Comparing push and pull measures for PV and wind in Europe. In: Moshfegh B, editor. LINKOPING ELECTRONIC CONFERENCE PROCEEDINGS (ONLINE). Linkoping, Sweden: Linköping University Electronic Press, Linköpings universitet; 2011. p. 2706–13.
MLA
Laleman, Ruben, and Johan Albrecht. “Comparing Push and Pull Measures for PV and Wind in Europe.” Linkoping Electronic Conference Proceedings (online). Ed. Bahram Moshfegh. Linkoping, Sweden: Linköping University Electronic Press, Linköpings universitet, 2011. 2706–2713. Print.
@inproceedings{1242992,
  abstract     = {Successful technological innovation frameworks are based on synergistic packages of technology-push and demand-pull measures. As the massive deployment of premature renewable energy technologies risks becoming very expensive, the debate on the optimal trajectory of renewable technologies should explicitly consider the balance between deployment incentives and R\&D efforts. This paper explores this balance regarding wind and PV technology support in Europe. Based on rather conservative estimates, we calculate future deployment costs and compare these figures to the current public investments in PV and wind R\&D. We find that, today, for each Euro spent on R\&D to develop future technologies, 35 to 41 Euros are spent on the deployment of existing technologies. Furthermore, private PV and wind technology companies tend to underinvest in R\&D for various reasons. In an alternative scenario, we assess the optimal R\&D efforts for the PV and wind sectors based on a 7\% R\&D-to-sales benchmark that is typical for engineering sectors. If public R\&D efforts would increase according to this benchmark, and hence compensate for the private underinvestments in R\&D, pull/push ratios between 6 and 8 could be achieved. This leads us to conclude that the current balance between deployment and R\&D is far from optimal.},
  author       = {Laleman, Ruben and Albrecht, Johan},
  booktitle    = {LINKOPING ELECTRONIC CONFERENCE PROCEEDINGS (ONLINE)},
  editor       = {Moshfegh, Bahram},
  issn         = {1650-3740},
  keyword      = {Feed In Tariff,Pull Push framework,Energy Policy,Wind energy,Solar energy},
  language     = {eng},
  location     = {Linkoping, Sweden},
  pages        = {2706--2713},
  publisher    = {Link{\"o}ping University Electronic Press, Link{\"o}pings universitet},
  title        = {Comparing push and pull measures for PV and wind in Europe},
  year         = {2011},
}