Demonstrations: the missing link in government-sponsored energy technology deployment

Abstract

When effectively conducted, demonstrations constitute a powerful and often essential marketing step for new technologies. Seven case studies illustrate the value of demonstrations to the deployment of new energy technologies — particularly those being developed by independent inventors and small businesses. One key lesson is that successful demonstrations focus on fully qualified products. Premature prototypes, on the other hand, are more appropriate for field testing, where technical failures can be fixed without severely damaging future market prospects. A second lesson is that multiple and staged demonstrations may be necessary when industry and end-user markets are highly fragmented or when application environments are divergent. Public agencies can promote successful demonstrations in many ways: by finding suitable industrial partners and third-party monitors, by providing subventions that lower the risks and increase economic benefits to participants, and by compiling and disseminating accurate performance data. In addition, government agencies can play a constructive role by helping technology promoters understand the distinction between field tests and demonstrations, and by facilitating multiple demonstrations when necessary.