Scale and innovation in the energy sector: A focus on photovoltaics and nuclear fission

Abstract

Energy technologies have a tendency to become locked in. Mature technologies are favoured due to their accumulated experience and low costs, preventing the entry of new competitors into the market. Public policies support technological evolution in the energy sector through research, development, demonstration and market transformation initiatives. These programmes can reduce CO2 emissions. Their scope, however, is limited by costs and therefore efficiency is critical. Based on a study of photovoltaics and nuclear fission, I show that the scale of an energy technology influences its responsiveness to policy interventions. Rapid innovation can be more effectively supported with limited funds for small scale technologies than for those restricted to the size of a large power plant. An energy infrastructure consisting of small scale technologies may more readily adapt to strict emissions regulations. © 2006 IOP Publishing Ltd.