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Avoiding the Clean
Tech Crash: Can
Renewable Energy
Achieve Subsidy
Independence?
 Joseph Desmond
 May 23, 2012




Proprietary & Confidential © 2012 BrightSource Energy, Inc.
All rights reserved.                                          1
Incentives as Instruments of Federal Energy
            Policy
      Challenges associated with understanding the complete
       picture of energy incentives
               Many forms of incentives
                           tax policy
                           regulation
                           research and development
                           market activity
                           government services
                           disbursements.
               Types, amounts and targets change substantially over time
               Funded, managed and monitored in a variety of ways
               Agencies responsible for administering incentives change over
                time
               Difficulty tracking year-to-year changes in legislation and
                budgets
Proprietary & Confidential © 2012 BrightSource Energy, Inc.
All rights reserved.                                                            2
60 Years of Energy Incentives: Analysis of
            Federal Expenditures for Energy*
            Development




  * Management Information Services, Inc. for the Nuclear Energy Institute, Oct 2011
Proprietary & Confidential © 2012 BrightSource Energy, Inc.
All rights reserved.                                                                   3
Long history of federal incentives to support
            energy policy objectives




        Findings indicate that the largest beneficiaries of federal energy incentives have been
        oil and gas, receiving more than half of all incentives provided since 1950
        Source: Management Information Services, Inc. for the Nuclear Energy Institute, Oct 2011
Proprietary & Confidential © 2012 BrightSource Energy, Inc.
All rights reserved.                                                                               4
Example: Shale Gas and the Importance of
             Federal Support


 Government policies —
 including federal R&D
funding, public--‐private
      demonstration
      initiatives, and
production incentives for
      maturing, pre-
   -‐competitive energy
technologies — played a
critical role in advancing
      the key energy
 innovations required to
  unlock U.S. shale gas
          reserves.




                                                               Alex Trembath, Jesse Jenkins, Ted Nordhaus, and Michael Shellenberger, “Where the Shale Gas Revolution Came From: The
 Proprietary & Confidential © 2012 BrightSource Energy, Inc.   Role of Government in the Development of Hydraulic Fracturing in Shale,” May 2012.
 All rights reserved.                                          http://thebreakthrough.org/blog/Where_the_Shale_Gas_Revolution_Came_From.pdf                                            5

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Avoiding the Cleantech Crash

  • 1. Avoiding the Clean Tech Crash: Can Renewable Energy Achieve Subsidy Independence? Joseph Desmond May 23, 2012 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. 1
  • 2. Incentives as Instruments of Federal Energy Policy  Challenges associated with understanding the complete picture of energy incentives  Many forms of incentives  tax policy  regulation  research and development  market activity  government services  disbursements.  Types, amounts and targets change substantially over time  Funded, managed and monitored in a variety of ways  Agencies responsible for administering incentives change over time  Difficulty tracking year-to-year changes in legislation and budgets Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. 2
  • 3. 60 Years of Energy Incentives: Analysis of Federal Expenditures for Energy* Development * Management Information Services, Inc. for the Nuclear Energy Institute, Oct 2011 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. 3
  • 4. Long history of federal incentives to support energy policy objectives Findings indicate that the largest beneficiaries of federal energy incentives have been oil and gas, receiving more than half of all incentives provided since 1950 Source: Management Information Services, Inc. for the Nuclear Energy Institute, Oct 2011 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. 4
  • 5. Example: Shale Gas and the Importance of Federal Support Government policies — including federal R&D funding, public--‐private demonstration initiatives, and production incentives for maturing, pre- -‐competitive energy technologies — played a critical role in advancing the key energy innovations required to unlock U.S. shale gas reserves. Alex Trembath, Jesse Jenkins, Ted Nordhaus, and Michael Shellenberger, “Where the Shale Gas Revolution Came From: The Proprietary & Confidential © 2012 BrightSource Energy, Inc. Role of Government in the Development of Hydraulic Fracturing in Shale,” May 2012. All rights reserved. http://thebreakthrough.org/blog/Where_the_Shale_Gas_Revolution_Came_From.pdf 5