Energy RD Performance: Gas Turbine Case Study

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8. LESSONS FROM OTHER CASE STUDIES The gas turbine R&D case study is one of a series of cases analyzed for this report. The MIT Energy Laboratory also draws upon previous MIT studies in wind energy and advanced gas turbine systems. These two reports, “Technological Change and Public Policy: A Case Study of the Wind Energy Industry” and “Advanced Gas Turbine Systems” included conclusions which can be incorporated here. These are the summaries of their findings. Wind The wind study examined the advancement of wind turbines in the power generation market59. It focused on government efforts and detailed both technological innovations and policy steps which contributed to wind turbine development. According to this report, attempts to advance this field took two forms: supply push and demand pull. Each of these was a way in which governments could help to spur the wind turbine market. Technologically, wind turbines have developed significantly since their practical inception in beginning of this century. They first became viable in areas where fuel supply was problematic for other forms of power generation. As oil, coal, and gas became more readily accessible worldwide, the wind power market floundered. Interest resurged in the 1970s when environmental and fuel pressures once again raised awareness of renewable energy. Wind turbines progressed in materials, structure, cost, efficiency, and electronic controls. For example, blade materials have switched from wood to fiberglass. They have also advanced in geometry from simple and uniform slats to tapered, twisted, aerodynamic shapes. Structurally, some turbines advanced by combining their hubs and blades rather than requiring separable parts. The introduction of sophisticated control systems also helped these turbines with orientation, generator synchronization, and variable speed generation. However, most changes have been incremental and many basic concepts have not changed since Danish efforts of the 1950s. Some of these advancements that did occur were made as a result of demand-side policies. The Public Utilities Regulatory Policy Act (PURPA) was instrumental because it mandated that utilities buy power from small power producers. Although it did not specifically address wind power, it promoted renewable energy technologies, from which wind turbines benefited. Government was also involved with two other forms of demand-side encouragement. The first was economic: a set of tax incentives and subsidies for use of renewable energies, making such energy commercially viable. The second was social: information dissemination and diffusion which allowed a multitude of research efforts to learn from the experiences of others. Supply-side policies were also instrumental in wind turbine development. The largest portion of this type of support, which more directly funds R&D, was the US government’s Mod program, 59 Jeff Loiter and Vicki Norberg-Bohm, “Technological Change in Public Policy: a Case Study of the Wind Energy Industry,” MIT Environmental Technology and Public Policy Program Working Paper, 1997. 39

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