Order Code RS22858
April 9, 2008
Renewable Energy R&D Funding History: A
Comparison with Funding for Nuclear Energy,
Fossil Energy, and Energy Efficiency R&D
Fred Sissine
Specialist in Energy Policy
Resources, Science, and Industry DivisionJanuary 26, 2011
Congressional Research Service
7-5700
www.crs.gov
RS22858
CRS Report for Congress
Prepared for Members and Committees of Congress
Renewable Energy R&D Funding History: A Comparison
Summary
Energy research and development (R&D) intended to advance technology played
an important
role in the successful outcome of World War II. In the post-war era, the
federal government
conducted R&D on fossil fuel and nuclear energy sources to support
peacetime economic growth.
The energy crises of the 1970s spurred the government to
broaden the focus to include renewable
energy and energy efficiency. Over the 3033-year
period from the Department of Energy’s inception
at the beginning of fiscal Year (FY)
1978 through FY2007FY2010, federal spending for renewable energy
R&D amounted to about
16% of the energy R&D total, compared with 1514% for energy efficiency, 25
26% for fossil,
and 4137% for nuclear. For the 6063-year period from 1948 through 20072010, nearly 11% went
12%
went to renewables, compared with 9% for efficiency, 25% for fossil, and 54% for nuclear.
Introduction
This report provides a cumulative history of Department of Energy (DOE) funding
for renewable energy compared with funding for the other energy technologies — nuclear
energy, fossil energy, and energy efficiency. Specifically, it provides a comparison that
covers cumulative funding over the past 10 years (FY1998-FY2007), a second
comparison that covers the 30-year period since DOE was established at the beginning of
fiscal year 1978 (FY1978-FY2007), and a third comparison that covers a 60-year funding
history (FY1948-FY2007).
Guide to Tables and Charts
Table 1 shows the cumulative funding totals in real terms for the past 10 years (first
column), 30 years (second column), and 60 years (third column). Table 2 converts the
data from Table 1 into relative shares of spending for each technology, expressed as a
percentage of total spending for each period.
CRS-2
Figure 1 displays the data from the first column of Table 2 as a pie chart. That chart
shows the relative shares of cumulative DOE spending for each technology over the 10
years from FY1998 through FY2007. Figure 2 provides a similar chart for the period
from FY1978 through FY2007. Figure 3 shows a chart for FY1948 through FY2007.
Background
The availability of energy — especially gasoline and other liquid fuels — played a
critical role in World War II. Another energy-related factor was the application of
research and development (R&D) to the atomic bomb and other military technologies.
During the post World War II era, the federal government began to apply R&D to the
peacetime development of energy sources to support economic growth. At that time, the
primary R&D focus was on fossil fuels and new forms of energy derived from nuclear
fission and nuclear fusion.
From FY1948 through FY1977 the federal government provided an extensive
amount of R&D support for fossil energy and nuclear power technologies.1 Total
spending on fossil energy technologies over that period amounted to about $15.4 billion,
in constant FY2008 dollars. The federal government spent about $46.4 billion (in
constant FY2008 dollars) during that period for nuclear fission and nuclear fusion energy
R&D.2
The energy crises of the 1970s spurred the federal government to expand its R&D
programs to include renewable (wind, solar, biomass, geothermal, hydro) energy and
energy efficiency technologies. Modest efforts to support renewable energy and energy
efficiency began during the early 1970s. From FY1973 through FY1977 the federal
government spent about $1.5 billion (in constant FY2008 dollars) on renewable energy
R&D, $140 million on energy efficiency R&D, and $170 million on electric systems
R&D.3
The Department of Energy was established by law in 1977. All of the energy R&D
programs — fossil, nuclear, renewable, and energy efficiency — were brought under its
administration. DOE also undertook a small program in energy storage and electricity
system R&D that supports the four main energy technology programs.4 DOE’s funding
support for those technologies began in FY1978. Funding for all four of the main
technologies skyrocketed initially, and then fell dramatically in the early 1980s.
1
DOE. Pacific Northwest Laboratory. An Analysis of Federal Incentives Used to Stimulate
Energy Production. 1980. The spending for fossil energy included coal, oil, and natural gas
technologies.
2
DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to Stimulate
Energy Production, 1980.
3
4
DOE Conservation and Renewable Energy Base Table. February 1990.
This program includes R&D on advanced batteries to store electricity and transmission
equipment to transfer electricity with less heat loss (i.e. at higher levels of energy efficiency).
CRS-3
Table 1. DOE Energy Technology Cumulative Funding Totals
(billions of 2008 dollars)
Period
Technology
FY1998-FY2007
(10 years)
FY1978-FY2007
(30 years)
FY1948-FY2007
(60 years)
Renewable Energy
$ 3.94
$ 15.43
$ 16.96
Energy Efficiency
6.02
14.18
14.32
Fossil Energy
5.36
24.22
39.60
Nuclear Energy
6.41
38.62
85.01
Electric Systems
0.93
2.85
3.02
$22.66
$95.30
$158.91
Total
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to
Stimulate Energy Production, 1980. Deflator Source: The Budget for Fiscal Year 2009. Historical Tables.
Table 10.1. Gross Domestic Product and Deflators Used in the Historical Tables, 1940-2013. p. 194-195.
Table 2. DOE Energy Technology Share of Funding
(percent; derived from Table 1)
Period
Technology
FY1998-FY2007
(10 years)
FY1978-FY2007
(30 years)
FY1948-FY2007
(60 years)
Renewable Energy
17.4%
16.2%
10.7%
Energy Efficiency
26.6%
14.9%
9.0%
Fossil Energy
23.7%
25.4%
24.9%
Nuclear Energy
28.3%
40.5%
53.5%
Electric Systems
4.1%
3.0%
1.9%
100.0%
100.0%
100.0%
Total
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to
Stimulate Energy Production, 1980; DOE Conservation and Renewable Energy Base Table. February 1990.
Deflator Source: The Budget for Fiscal Year 2009. Historical Tables. Table 10.1. Gross Domestic Product
and Deflators Used in the Historical Tables, 1940-2013. p. 194-195.
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Figure 1.
DOE Energy Technology Share of Funding, FY1998FY2007
4%
17%
28%
Renewable Energy
Energy Efficiency
Fossil Energy
Nuclear Energy
27%
Electric Systems
24%
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); Deflator Source: The Budget for Fiscal Year 2009. Historical Tables. Table 10.1.
Gross Domestic Product and Deflators Used in the Historical Tables, 1940-2013. p. 194-195.
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Figure 2.
DOE Energy Technology Share of Funding, FY1978FY2007
3%
17%
Renewable Energy
Energy Efficiency
39%
15%
Fossil Energy
Nuclear Energy
Electric Systems
26%
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); Deflator Source: The Budget for Fiscal Year 2009. Historical Tables. Table 10.1.
Gross Domestic Product and Deflators Used in the Historical Tables, 1940-2013. p. 194-195.
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Figure 3.
DOE Energy Technology Share of Funding, FY1948FY2007
2%
11%
9%
Renewable Energy
Energy Efficiency
Fossil Energy
Nuclear Energy
53%
25%
Electric Systems
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget Requests (several
years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to Stimulate Energy Production,
1980; DOE Conservation and Renewable Energy Base Table. Feb. 1990. Deflator Source: The Budget for Fiscal Year
2009. Historical Tables. Table 10.1. p. 194-195.50% for nuclear.
Congressional Research Service
Renewable Energy R&D Funding History: A Comparison
Contents
Introduction ................................................................................................................................1
Guide to Tables and Charts..........................................................................................................1
Background ................................................................................................................................1
Figures
Figure 1. DOE Energy Technology Share of Funding, FY2001-FY2010 ......................................3
Figure 2. DOE Energy Technology Share of Funding, FY1978-FY2010 ......................................4
Figure 3. DOE Energy Technology Share of Funding, FY1948-FY2010 ......................................5
Figure 4. DOE Energy Technology Share of Funding, Comparison over Three Periods................6
Tables
Table 1. DOE Energy Technology Cumulative Funding Totals.....................................................2
Table 2. DOE Energy Technology Share of Funding....................................................................2
Contacts
Author Contact Information ........................................................................................................6
Congressional Research Service
Renewable Energy R&D Funding History: A Comparison
Introduction
This report provides a cumulative history of Department of Energy (DOE) funding for renewable
energy compared with funding for the other energy technologies—nuclear energy, fossil energy,
and energy efficiency. Specifically, it provides a comparison that covers cumulative funding over
the past 10 years (FY2001-FY2010), a second comparison that covers the 33-year period since
DOE was established at the beginning of fiscal year 1978 (FY1978-FY2010), and a third
comparison that covers a 63-year funding history (FY1948-FY2010).
Guide to Tables and Charts
Table 1 shows the cumulative funding totals in real terms for the past 10 years (first column), 33
years (second column), and 63 years (third column). Table 2 converts the data from Table 1 into
relative shares of spending for each technology, expressed as a percentage of total spending for
each period.
Figure 1 displays the data from the first column of Table 2 as a pie chart. That chart shows the
relative shares of cumulative DOE spending for each technology over the 10 years from FY2001
through FY2010. Figure 2 provides a similar chart for the period from FY1978 through FY2010.
Figure 3 shows a chart for FY1948 through FY2010.
Background
The availability of energy—especially gasoline and other liquid fuels—played a critical role in
World War II. Another energy-related factor was the application of research and development
(R&D) to the atomic bomb and other military technologies. During the post World War II era, the
federal government began to apply R&D to the peacetime development of energy sources to
support economic growth. At that time, the primary R&D focus was on fossil fuels and new forms
of energy derived from nuclear fission and nuclear fusion.
From FY1948 through FY1977 the federal government provided an extensive amount of R&D
support for fossil energy and nuclear power technologies.1 Total spending on fossil energy
technologies over that period amounted to about $15.7 billion, in constant FY2010 dollars. The
federal government spent about $47.5 billion (in constant FY2010 dollars) during that period for
nuclear fission and nuclear fusion energy R&D.2
The energy crises of the 1970s spurred the federal government to expand its R&D programs to
include renewable (wind, solar, biomass, geothermal, hydro) energy and energy efficiency
technologies. Modest efforts to support renewable energy and energy efficiency began during the
early 1970s. From FY1973 through FY1977 the federal government spent about $1.6 billion (in
1
DOE. Pacific Northwest Laboratory. An Analysis of Federal Incentives Used to Stimulate Energy Production. 1980.
The spending for fossil energy included coal, oil, and natural gas technologies.
2
DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to Stimulate Energy Production, 1980.
Congressional Research Service
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Renewable Energy R&D Funding History: A Comparison
constant FY2010 dollars) on renewable energy R&D, $143 million on energy efficiency R&D,
and $173 million on electric systems R&D.3
The Department of Energy was established by law in 1977. All of the energy R&D programs—
fossil, nuclear, renewable, and energy efficiency—were brought under its administration. DOE
also undertook a small program in energy storage and electricity system R&D that supports the
four main energy technology programs.4 DOE’s funding support for those technologies began in
FY1978. Funding for all four of the main technologies skyrocketed initially, and then fell
dramatically in the early 1980s.
Table 1. DOE Energy Technology Cumulative Funding Totals
(billions of 2010 dollars)
Period
Technology
FY2001-FY2010
(10 years)
Renewable Energy
FY1978-FY2010
(33 years)
FY1948-FY2010
(63 years)
$ 6.42
$ 19.50
$ 21.06
6.50
16.87
17.02
10.55
30.87
46.61
Nuclear Energy
8.85
43.63
91.12
Electric Systems
5.78
7.92
8.09
$38.10
$118.79
$183.91
Energy Efficiency
Fossil Energy
Total
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to
Stimulate Energy Production, 1980. Deflator Source: The Budget for Fiscal Year 2011. Historical Tables. Table
10.1. Gross Domestic Product and Deflators Used in the Historical Tables, 1940-2015.
Table 2. DOE Energy Technology Share of Funding
(percent; derived from Table 1)
Technology
Period
FY2001-FY2010
(10 years)
FY1978-FY2010
(33 years)
FY1948-FY2010
(63 years)
Renewable Energy
16.8%
16.4%
11.5%
Energy Efficiency
17.1%
14.2%
9.3%
Fossil Energy
27.7%
26.0%
25.3%
Nuclear Energy
23.2%
36.7%
49.5%
Electric Systems
15.2%
6.7%
4.4%
100.0%
100.0%
100.0%
Total
3
DOE Conservation and Renewable Energy Base Table. February 1990.
This program includes R&D on advanced batteries to store electricity and transmission equipment to transfer
electricity with less heat loss (i.e. at higher levels of energy efficiency).
4
Congressional Research Service
2
Renewable Energy R&D Funding History: A Comparison
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to
Stimulate Energy Production, 1980; DOE Conservation and Renewable Energy Base Table. February 1990.
Deflator Source: The Budget for Fiscal Year 2011. Historical Tables. Table 10.1. Gross Domestic Product and
Deflators Used in the Historical Tables, 1940-2015.
Figure 1. DOE Energy Technology Share of Funding, FY2001-FY2010
15.2%
16.8%
Renewables
Energy Efficiency
17.1%
Fossil Energy
Nuclear Energy
23.2%
Electric Systems
27.7%
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget Requests
(several years); Deflator Source: The Budget for Fiscal Year 2011. Historical Tables. Table 10.1. Gross Domestic
Product and Deflators Used in the Historical Tables, 1940-2015.
Congressional Research Service
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Renewable Energy R&D Funding History: A Comparison
Figure 2. DOE Energy Technology Share of Funding, FY1978-FY2010
6.7%
16.4%
Renewables
14.2%
36.7%
Energy Efficiency
Fossil Energy
Nuclear Energy
Electric Systems
26.0%
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget Requests
(several years); Deflator Source: The Budget for Fiscal Year 2011. Historical Tables. Table 10.1. Gross Domestic
Product and Deflators Used in the Historical Tables, 1940-2015.
Congressional Research Service
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Renewable Energy R&D Funding History: A Comparison
Figure 3. DOE Energy Technology Share of Funding, FY1948-FY2010
4.4%
11.5%
9.3%
Renewables
Energy Efficiency
Fossil Energy
Nuclear Energy
Electric Systems
49.5%
25.3%
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to
Stimulate Energy Production, 1980; DOE Conservation and Renewable Energy Base Table. Feb. 1990. Deflator
Source: The Budget for Fiscal Year 2011. Historical Tables. Table 10.1.
Congressional Research Service
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Renewable Energy R&D Funding History: A Comparison
Figure 4. DOE Energy Technology Share of Funding, Comparison over Three Periods
100%
11.5%
16.4%
90%
16.8%
9.3%
80%
4.4%
14.2%
17.1%
70%
6.7%
60%
15.2%
Renewables
Energy Efficiency
50%
49.5%
Electric Systems
Nuclear Energy
36.7%
40%
Fossil Energy
23.2%
30%
20%
25.3%
26.0%
27.7%
FY1948FY2010
FY1978FY2010
FY2001FY2010
10%
0%
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to
Stimulate Energy Production, 1980; DOE Conservation and Renewable Energy Base Table. Feb. 1990. Deflator
Source: The Budget for Fiscal Year 2011. Historical Tables. Table 10.1.
Note: Column to far left shows shares for the period FY1948-FY2010; middle column shows shares for period
from FY1978-FY2010; and far right column shows shares for period from FY2001-FY2010.
Author Contact Information
Fred Sissine
Specialist in Energy Policy
fsissine@crs.loc.gov, 7-7039
Congressional Research Service
6