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The transition to clean energy is one of the greatest challenges of the 21st century. The goals of this transition—which are both economic and environmental—can only be realized with technical innovation. States will play a key role in the research, development, and demonstration (RD&D) processes that drive this innovation. In the coming years, states will be making crucial decisions to advance clean energy RD&D. Such decisions will play a key part in helping America secure a clean energy future. Clean energy encompasses not only renewable energy sources (e.g., wind, solar, biomass, geothermal, and tidal), but also cleaner fossil fuel technologies (such as carbon capture and storage), energy efficiency, and advanced energy storage technologies. Clean energy is already a major economic force: In 2007, an estimated $71 billion was invested in new renewable energy capacity worldwide.However, many of these technologies are still often more expensive than mainstream alternatives. One of the main goals of RD&D is to reduce the costs of clean and renewable energy technologies so their benefits can be fully realized. Technological innovation is traditionally viewed on a linear timeline in which universities and laboratories conduct basic and applied research—often with federal dollars—and private firms undertake development, demonstration, and deployment. While this model varies, states can play an important role at each stage.
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