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 Division
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 30-year
period from the Department of Energy’s inception at the beginning of fiscal Year (FY)
1978 through FY2007, federal spending for renewable energy R&D amounted to about
16% of the energy R&D total, compared with 15% for energy efficiency, 25% for fossil,
and 41% for nuclear. For the 60-year period from 1948 through 2007, nearly 11% 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.

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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 DOE Conservation and Renewable Energy Base Table. February 1990.
4 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).

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Table 1. DOE Energy Technology Cumulative Funding Totals
(billions of 2008 dollars)
Period
Technology
FY1998-FY2007
FY1978-FY2007
FY1948-FY2007
(10 years)
(30 years)
(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
Total
$22.66
$95.30
$158.91
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
FY1978-FY2007
FY1948-FY2007
(10 years)
(30 years)
(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%
Total
100.0%
100.0%
100.0%
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. 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, FY1998-
FY2007
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, FY1978-
FY2007
3%
17%
Renewable Energy
39%
Energy Efficiency
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, FY1948-
FY2007
2%
11%
9%
Renewable Energy
Energy Efficiency
Fossil Energy
53%
Nuclear Energy
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.

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