Full Title: Kickstart Markets for Clean Energy Technologies: Demand-Side Support for Dummies
Author(s): John Jacobs, Tanya Das, Xan Fishman, and Danny Broberg
Publisher(s): Bipartisan Policy Center
Publication Date: January 16, 2024
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Demand-side support might do the trick to calm fears and crowd-in needed private investment to kickstart markets for clean energy technologies. Companies need to have confidence that there will be customers for their product at a price that delivers an adequate return on investment to secure financing. Without some certainty that there is a viable market, private lenders will deem these investments too risky. Demand-side support can provide needed confidence, and as a result, “de-risk” projects.
As governments look to accelerate the commercialization of various clean energy alternatives, more attention is being paid to the demand-side of the equation. Numerous countries are adopting pioneering initiatives, private companies are investing collaboratively to establish novel organizations, and the Department of Energy (DOE) is exploring ways to provide demand-side support, most recently for clean hydrogen.
This guide offers a comprehensive overview of different demand-side support tools, describing typical applications and providing real-world examples of how specific tools can be utilized. Importantly, this guide does not endorse any specific tool or the general use of demand-side support. Each use case and each market are unique, and different considerations will apply as a result.