Beyond the Technology Pork Barrel? An assessment of the Obama administration's energy demonstration projects

Abstract

This paper provides an assessment of a portfolio of 53 energy technology demonstration projects that were initiated by the Obama administration between 2009 and 2011 and managed by the U.S. Department of Energy (DOE). After reviewing the rationales for conducting such projects and providing partial public funding for them, five assessment criteria derived from the literature are applied to the portfolio, pertaining to project selection and termination, cost-sharing, partnerships, information-sharing, and the environment for follow-on investment. The assessment is mixed. DOE performed best, relative to expectations, on project selection and termination and partnerships, and not as well on cost-sharing, information-sharing, and the follow-on environment. This performance does not warrant establishing a new agency to replace DOE for management of demonstration projects. The recommendations include implementing cost-sharing more flexibly, making information-sharing a higher priority, avoiding too-rapid scale-up of technologies, and being explicit about project milestones and considering termination if they are not met.