6. Energy technology research, development and demonstration

Key data

(2017)

Government energy RD&D spending: USD 7 289 million

Share of GDP: 0.38 per 1 000 GDP units (IEA* median: 0.30, IEA average: 0.43) RD&D per capita: USD 22.4 (IEA* median: USD 13.8)

* Median of 19 IEA member countries for which 2017 data are available.

Overview

The United States (US) is a global leader in energy-related research, development and demonstration (RD&D). Federal energy RD&D efforts are almost entirely directed out of the Department of Energy (DOE), where RD&D activities are a core tenet to the department’s mandate. Central to this are the DOE’s national laboratories, federally funded research centres with worldclass facilities for advanced energy research.

A large share of public RD&D funding is allocated to clean energy research, including energy efficiency. With the growth in variable renewable electricity generation, greater deployment of electric vehicles (EVs), and increased extreme weather events and cyberthreats, research into modernising and strengthening the power grid is becoming a more important focus area. Other low-carbon technologies that benefit from more RD&D funding are nuclear – especially to develop small modular reactors (SMRs) – and carbon capture, utilisation and storage (CCUS).

The United States is also engaged in energy RD&D internationally, for instance by participating in most of the Technology Collaboration Programmes (TCPs) co-ordinated by the International Energy Agency (IEA). The United States is also a founding member of the Clean Energy Ministerial (CEM). For the United States to maintain its global leadership in clean energy technology innovation, these and other international collaborations should receive continued support.

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6. ENERGY TECHNOLOGY RESEARCH, DEVELOPMENT AND DEMONSTRATION

Public spending on energy RD&D

The United States spent 0.038% of its gross domestic product (GDP) in 2017 on energyrelated RD&D.1 This was among the higher shares in an IEA comparison although significantly below the top-ranked countries (Figure 6.1). In absolute numbers, however, the US energy RD&D budget is by far the largest, and accounts for around 40% of total public spending among all IEA member countries (Figure 6.2).

In 2017, the United States spent USD 7.3 billion on energy-related RD&D, a 9% increase from the year before (Figure 6.3). Basic energy research received the largest share of public funds, with 31% of the total. Energy efficiency received the second-largest share (24% of the total), mainly for research in efficient transport. Renewable energy received the third-largest share (16%), mostly directed at biofuels and smaller shares allocated for solar and wind research.

Nuclear received 11% of total public RD&D funding in 2017. Approximately half of that was spent on fission research, including the uranium fuel cycle and nuclear waste management, and the other half on fusion power, which is a technology that is not commercially available. Fossil fuels RD&D received 6% of total public funding, of which more than half went to research on CCUS. Electric power systems, including generation, transmission and distribution, and storage technologies received another 5%.

Figure 6.1 Government energy RD&D spending per GDP in IEA countries, 2017

Energy RD&D spending per thousand units of GDP

1.2

1.0

0.8

0.6

0.4

0.2

0.0

IEA (2019). All rights reserved.

The United States ranks high in RD&D spending per unit of GDP, but below the top IEA countries.

Note: Data are not available for Belgium, the Czech Republic, Finland, France, Greece, Hungary, Ireland, Korea, Luxembourg, Portugal and Spain.

Source: IEA (2018), Energy Technology RD&D Budgets 2018, www.iea.org/statistics/.

1 IEA calculations based on budgetary approvals for five agencies: DOE, Department of Defense, National Aeronautics and Space Administration, US Agricultural Department, and Department of Transportation.

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6. ENERGY TECHNOLOGY RESEARCH, DEVELOPMENT AND DEMONSTRATION

Figure 6.2 Government energy RD&D spending in IEA countries, 2017

USD million

8 000

7 000

6 000

5 000

4 000

3 000

2 000

1 000

0

IEA (2019). All rights reserved.

US spending accounts for nearly half of the total public energy RD&D budget in the IEA.

Note: Data are not available for Belgium, the Czech Republic, Finland, France, Greece, Hungary, Ireland, Korea, Luxembourg, Portugal and Spain.

Source: IEA (2018), Energy Technology RD&D Budgets 2018, www.iea.org/statistics/.

Figure 6.3 Government energy RD&D spending by category, 2010-17

USD million (2017 prices)

IEA (2019). All rights reserved.

The government spent USD 7.3 billion on energy related RD&D in 2017, of which basic research, energy efficiency, renewable energy and nuclear received the largest shares.

*Other includes hydrogen and fuel cells and other non-allocated funding.

**Power and storage includes electric power generation, electricity transmission and distribution, and other power and storage technologies.

Source: IEA (2018), Energy Technology RD&D Budgets 2018, www.iea.org/statistics/.

Institutional framework

The DOE is at the centre of US energy RD&D efforts, with a range of programmes, sizeable funding and a variety of technological focus areas under its jurisdiction. In fact, the DOE’s mission itself is defined as supporting “transformative science and technology solutions”, making RD&D a cornerstone of the department’s mandate.

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