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Implementing Radical Innovation in Renewable Energy Experience Curves

Author

Listed:
  • Paul Kerr

    (Institute for Energy Systems, School of Engineering, University of Edinburgh, Edinburgh EH9 3DW, UK)

  • Donald R. Noble

    (Institute for Energy Systems, School of Engineering, University of Edinburgh, Edinburgh EH9 3DW, UK)

  • Jonathan Hodges

    (Wave Energy Scotland, An Lochran, 10 Inverness Campus, Inverness IV2 5NA, UK)

  • Henry Jeffrey

    (Institute for Energy Systems, School of Engineering, University of Edinburgh, Edinburgh EH9 3DW, UK)

Abstract

Cost reductions in nascent forms of Renewable Energy Technology (RET) are essential for them to contribute to the energy mix. Policy intervention can facilitate this cost reduction; however, this may require a significant investment from the public sector. These cost reductions fall into two broad categories: (1) incremental cost reductions through continual improvements to existing technologies, and (2) radical innovation where technologies that significantly differ from the incumbents are developed. This study presents a modelling methodology to integrate radical innovation in RET experience curve and learning investment analysis, using wave energy as an example nascent RET. This aims to quantify the potential effects of radical innovation on the learning investment, allowing the value of successful innovation to be better analysed. The study highlights the value offered by radical innovations in long-term deployment scenarios for wave energy. This suggests that high-risk R&D efforts in nascent RET sectors, even with low success rates, could still present significant expected value in offsetting future revenue support.

Suggested Citation

  • Paul Kerr & Donald R. Noble & Jonathan Hodges & Henry Jeffrey, 2021. "Implementing Radical Innovation in Renewable Energy Experience Curves," Energies, MDPI, vol. 14(9), pages 1-28, April.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:9:p:2364-:d:540835
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    References listed on IDEAS

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    Cited by:

    1. Naimeh Mohammadi & Hamid Mostofi & Hans-Liudger Dienel, 2023. "Policy Chain of Energy Transition from Economic and Innovative Perspectives: Conceptual Framework and Consistency Analysis," Sustainability, MDPI, vol. 15(17), pages 1-27, August.
    2. Ireneusz Górowski & Bartosz Kurek & Marek Szarucki, 2022. "The Impact of a New Accounting Standard on Assets, Liabilities and Leverage of Companies: Evidence from Energy Industry," Energies, MDPI, vol. 15(4), pages 1-15, February.
    3. Santhakumar, Srinivasan & Smart, Gavin & Noonan, Miriam & Meerman, Hans & Faaij, André, 2022. "Technological progress observed for fixed-bottom offshore wind in the EU and UK," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    4. Bożena Gajdzik & Radosław Wolniak & Wies Grebski, 2023. "Process of Transformation to Net Zero Steelmaking: Decarbonisation Scenarios Based on the Analysis of the Polish Steel Industry," Energies, MDPI, vol. 16(8), pages 1-36, April.
    5. Inès Tunga & Anna Garcia-Teruel & Donald R. Noble & Jillian Henderson, 2021. "Addressing European Ocean Energy Challenge: The DTOceanPlus Structured Innovation Tool for Concept Creation and Selection," Energies, MDPI, vol. 14(18), pages 1-23, September.
    6. Mateusz Trzeciak & Izabela Jonek-Kowalska, 2021. "Monitoring and Control in Program Management as Effectiveness Drivers in Polish Energy Sector. Diagnosis and Directions of Improvement," Energies, MDPI, vol. 14(15), pages 1-25, July.
    7. Garcia-Teruel, Anna & Roberts, Owain & Noble, Donald R. & Henderson, Jillian Catherine & Jeffrey, Henry, 2022. "Design limits for wave energy converters based on the relationship of power and volume obtained through multi-objective optimisation," Renewable Energy, Elsevier, vol. 200(C), pages 492-504.

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