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Geothermal experienced a very significant drop of R&D attention: its share in the total renewable R&D budget decreased sharply from 33.1% attributed in 1974 to only 8.3% in 2002. Almost the entire budget came from the US and Japan, which together made up for some 80- 90% of the geothermal R&D budget throughout almost all the period. Wind power received only 0.3% of the total budget in 1974, but 15.1% in 2002. The relative attention paid to wind has been rather stable in the 1980s and 1990s, with shares varying between 11.9% (1981 value, when the total budget spent on wind power actually peaked with some USD 242 million) and 17.4% (1996 value). Despite the drop of total R&D expenditures on solar PV in the early 1980s from some USD 400 million in 1980 to USD 182 million in 1987, the relative importance of solar PV in the Renewables R&D portfolio has been increasing steadily. While the share of solar PV was at 8.6% in 1974, it was raised to 34.7% of the total reported Renewables R&D funding for 2002. The peak was reached in the year 2000, when 42.5% or some USD 271 million was attributed to solar PV. Solar thermal electric technologies faced similar trends. While up to 21% (1980 value) of the Renewables budget were attributed to them in the late 70s and early 80s, the trend changed through the lessons learned on the potential payoff of R&D in this area. Resource allocations among technologies have changed, with the result that only about 3.4% of the total funding went to this technology in 2000. It has since then increased again to 8.2% in 2002. Other public measures to support Renewables market deployment R&D is not the only systematic means for creating the necessary progress and innovation for the development and market deployment of an energy system. Financial, regulatory or legislative, for example, measures can be at least more systematic and innovative as technological research. Subsidies for supporting the market deployment of energy technologies are broadly defined as any government intervention that alters the price of a good or service from the price it would be in an undistorted economic market. Subsidies cover a wide range of mechanisms and measures, including direct payments such as grants and loans, potential transfer of funds as loan guarantees, foregone government revenue or preferential taxes and market price intervention such as price or income support and feed-in-tariffs. During the period 1990 – 1995, energy subsidies, including research subsidies, but excluding funding through the R&D European Community framework programmes, remained focused on the support of fossil fuels and nuclear power despite the pressures and potential threats that these fuels place on the environment. Limited support was provided for energy conversation and renewable energy sources. Between 1990 and 1998, energy research subsidies were reduces by 36% and remained focused on nuclear fission and fusion (more than 55% of the total in 1998). The total subsidies (excluding external costs) within the EU 15 of support to energy sector were estimated to be in the order of EUR 29 billion in 2001. Solid fuels received the largest share of subsidies in 2001. The Renewables technologies industry received significantly higher support on a per-energy unit basis than other fuel resources in the majority of EU-Member States. 44PDF Image | Economic Perspectives of Renewable Energy Systems
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