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End-Use R&D: Technology Development Strategy for an Integrated Market

This article provides a value maximization strategy for end-use R&D planning which meets both supply-side and demand-side R&D objectives. The strategy is compatible with conventional econometric market analysis, power system demand-side management or least-cost planning methods, and operations research approaches common to manufacturing. The strategy permits incorporation of supply and demand uncertainties into the R&D planning process. It also provides a methodology for determining the optimal set of R&D investments. These R&D investments will result in products that increase the value of electrical service, promote the efficient operation of electric power systems, and ensure the productivity of manufacturing operations.

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Energy Specializations: Electricity – Markets and Prices ; Electricity – R&D and Emerging Technologies; Electricity – Policy and Regulation

JEL Codes: Q41: Energy: Demand and Supply; Prices, Q40: Energy: General, D11: Consumer Economics: Theory

Keywords: End-use R&D, Electric utilities, DSM

DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No3-2

Published in Volume 10, Number 3 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


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