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America’s energy innovation engine has been a well-oiled machine for nearly 50 years. We’re on the verge of building some of the greatest energy technology we’ve ever seen, but you know the saying—good help is hard to come by.
The bipartisan Infrastructure Investment and Jobs Act supported demonstration projects authorized in the 2020 Energy Act signed by President Donald Trump. It was the largest US Department of Energy project since the Manhattan Project.
IIJA includes $27 billion for grid infrastructure and $21.5 billion for the new Office of Clean Energy Demonstrations (OCED). If done right, this investment could be the key to beating China and Russia in the race for next-generation energy technologies.
Employee needs
Historically, the DOE has been a giant nuclear defense and science R&D agency. It focused on building and maintaining nuclear weapons, power stations for submarines and carriers, not to mention the Human Genome Project, massive particle collisions, and other world-changing innovations like quantum computing. It owns and operates 17 national laboratories.
The department, however, lacks expertise in specific ready-to-deploy commercial energy technology. In an August report, the department’s Office of Inspector General raised similar concerns about risk areas such as insufficient staffing, project oversight, inadequate project oversight, and inadequate internal and recipient-level oversight, noting that the DOE team has smart minds and policy knowledge.
But even in applied offices, R&D funding experts in early-stage technology, not people with experience in building commercial-scale power facilities.
The agency’s Office of Loan Programs, created in 2005 to connect new technologies to capital, has had some incredible wins, including Tesla. Some projects failed simply because the right people were not present during the selection process. The current office has brought in leaders with deep industry experience to fill gaps and create jobs.
Policy interests
Congressional oversight is clear to ensure these programs are successful, but there are three internal policy changes that DOE could implement.
First, DOE must immediately hire political and professional staff with experience in delivering power plants and other energy supplies on time and on budget.
This means funding senior energy engineers, private sector technology investment leaders, former large utility or equipment manufacturers, plant developers, corporate capital managers and investors deep in building commercial projects.
David Crane, NRG’s former CEO who was recently nominated to become DOE’s infrastructure secretary, indicated that this goal is on the right track.
Second, the department should use peer review advisory boards for each technology unit. For example, when the Office of Nuclear Energy created the Advanced Reactor Demonstration Program, a Blue Ribbon Advisory Committee with Investors brings together commercial nuclear experts to ensure that applicants with the best chance for commercial success are selected.
This peer review process has been used successfully by the DOE Office of Science to review funding opportunity proposals for decades and should be considered for all OCED selections.
Finally, the new OCED should have strong, defined coordination with existing applied energy offices. Once these offices know which technologies are ready for demonstration, OCED can focus on successful implementation – and get the money out the door. In turn, learnings from OCED feed into new R&D efforts by the Applied Energy Offices.
Big-picture goals
Earthshots, the department’s big-picture goal concept, is an organizing principle pioneered by SunShot in the Obama administration and continued in the Trump administration as the grand challenge of energy storage.
It can be a useful tool for coordinating activities from basic science to practical programs to major demonstrations. We know that investing wisely in innovation pays off.
Major advances in new energy technology, from lithium-ion batteries to nuclear energy to renewable energy, had significant government support when they were still in their infancy – even the revolution that led to the expansion of gas was initiated with a total of $10 billion in research and development and tax incentives.
There are many parts of our energy and industrial systems where we do not yet have the cheap and clean options needed to build the system of the future. But this demonstration program, with accompanying incentives, will help us get there.
With our staff of private industry, construction and operations experience, we lead the way to renewing America’s energy independence and the next generation to address both the immediate global energy and geopolitical crises and long-term emissions challenges.
If not, we will waste this opportunity to dramatically accelerate American energy technology.
This article does not necessarily reflect the views of the Office of National Affairs, Bloomberg Law and Bloomberg Tax, publisher or its owners.
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Paul animal The Department of Energy served as the fourth. Secretary of Science and Energy.
Rich Powell He is CEO of ClearPath, a Washington, DC-based nonprofit organization that develops and promotes policies that accelerate innovation to reduce emissions in the energy and industrial sectors.
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