Time to Aim High—Use Our Talents and Instruments

Abstract

This chapter argues that while success can only be achieved collectively, it must be based on private initiative and on brilliance in science. It analyzes additional parts of the innovation chain in energy, which are needed in the scaling up and demonstration phases. The chapter compares the EU’s Climate KIC program with the US’ ARPA-E program. ARPA-E was modeled after the successful Defense Advanced Research Projects Agency (DARPA) program of the U.S. Department of Defense (DOD), which funded the predecessor to the Internet and global positioning systems (GPS). Assessing the current scenario of creative destruction in the energy industry, the chapter discusses the case of German utility E.ON, which plans to spin off its fossil fuel and nuclear business in order to focus on its renewables business. Assessing new avenues to accelerate innovation and investment in the renewable energy space, the chapter issues recommendations to the different participants in the energy innovation chain. It argues that success is more likely if every actor intervenes where they have comparative advantage, and accepts that technology and innovation are ultimately also a question of imagination and daring.