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Experience Curves: A Tool for Energy Policy Assessment

Abstract

The objective of the project, Experience curves: a tool for energy policy assessment (EXTOOL), was to analyse the experience curve as a tool for the assessment of energy policy measures. This is of special interest, since the use of experience curves for the assessment of energy policy measures requires the development of the established experience curve methodology. This development raises several questions which have been addressed and analysed in this project. The analysis is based on case studies of wind power, an area with considerable experience in technology development, deployment and policy measures. Therefore, a case study based on wind power provides a good opportunity to study the usefulness of experience curves as a tool for the assessment of energy policy measures. However, the results are discussed in terms of using experience curves for the assessment of any energy technology. The project shows that experience curves can be used to assess the effect of combined policy measures in terms of cost reductions. Moreover, the result of the project show that experience curves could be used to analyse international 'learning systems', i.e. cost reductions brought about by the development of wind power and policy measures used in other countries. Nevertheless, the  More>>
Authors:
Neij, Lena; Helby, Peter; [1]  Dannemand Andersen, Per; Morthorst, Poul Erik; [2]  Durstewitz, Michael; Hoppe-Kilpper, Martin [3] 
  1. Lund Univ. (Sweden). Environmental and Energy Systems Studies
  2. Riso National Laboratory, Roskilde (Denmark)
  3. Inst. fuer Solare Energieversorgungstechnik e.V., Kassel (DE); and others
Publication Date:
Jul 01, 2003
Product Type:
Technical Report
Report Number:
LUTFD2-TFEM-03-3034; IMES-EESS-40
Resource Relation:
Other Information: 64 refs., 56 figs., 43 tabs; PBD: 2003
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; ENERGY POLICY; FINANCIAL INCENTIVES; COMMERCIALIZATION; WIND POWER; DEMONSTRATION PROGRAMS
OSTI ID:
20371554
Research Organizations:
Lund Inst. of Tech. (Sweden). Div. of Environmental and Energy Systems Studies
Country of Origin:
Sweden
Language:
English
Other Identifying Numbers:
Other: ISSN 1102-3651; ISBN 91-88360-56-3; TRN: SE0307269
Availability:
Available from: Lund University, Environmental and energy systems studies, Gerdagatan 13, SE-223 62 Lund, Sweden; Available to ETDE participating countries only(see www.etde.org); commercial reproduction prohibited; OSTI as DE20371554
Submitting Site:
SWD
Size:
146 pages
Announcement Date:
Sep 23, 2003

Citation Formats

Neij, Lena, Helby, Peter, Dannemand Andersen, Per, Morthorst, Poul Erik, Durstewitz, Michael, and Hoppe-Kilpper, Martin. Experience Curves: A Tool for Energy Policy Assessment. Sweden: N. p., 2003. Web.
Neij, Lena, Helby, Peter, Dannemand Andersen, Per, Morthorst, Poul Erik, Durstewitz, Michael, & Hoppe-Kilpper, Martin. Experience Curves: A Tool for Energy Policy Assessment. Sweden.
Neij, Lena, Helby, Peter, Dannemand Andersen, Per, Morthorst, Poul Erik, Durstewitz, Michael, and Hoppe-Kilpper, Martin. 2003. "Experience Curves: A Tool for Energy Policy Assessment." Sweden.
@misc{etde_20371554,
title = {Experience Curves: A Tool for Energy Policy Assessment}
author = {Neij, Lena, Helby, Peter, Dannemand Andersen, Per, Morthorst, Poul Erik, Durstewitz, Michael, and Hoppe-Kilpper, Martin}
abstractNote = {The objective of the project, Experience curves: a tool for energy policy assessment (EXTOOL), was to analyse the experience curve as a tool for the assessment of energy policy measures. This is of special interest, since the use of experience curves for the assessment of energy policy measures requires the development of the established experience curve methodology. This development raises several questions which have been addressed and analysed in this project. The analysis is based on case studies of wind power, an area with considerable experience in technology development, deployment and policy measures. Therefore, a case study based on wind power provides a good opportunity to study the usefulness of experience curves as a tool for the assessment of energy policy measures. However, the results are discussed in terms of using experience curves for the assessment of any energy technology. The project shows that experience curves can be used to assess the effect of combined policy measures in terms of cost reductions. Moreover, the result of the project show that experience curves could be used to analyse international 'learning systems', i.e. cost reductions brought about by the development of wind power and policy measures used in other countries. Nevertheless, the use of experience curves for the assessment of policy programmes has several limitations. First, the analysis and assessment of policy programmes cannot be achieved unless relevant experience curves based on good data can be developed. The authors are of the opinion that only studies that provide evidence of the validity, reliability and relevance of experience curves should be taken into account in policy making. Second, experience curves provide an aggregated picture of the situation and more detailed analysis of various sources of cost reduction, and cost reductions resulting from individual policy measures, requires additional data and analysis tools. Third, we do not recommend the use of experience curves to analyse learning investments and cost effectiveness of policy measures. Our analysis illustrates too many shortcomings for such analysis using experience curves. Due to the limitations of experience curves, we believe that complementary methods are required for the assessment of energy programmes. However, we recommend the traditional use of experience curves as a tool to support strategic decisions. Based on experience curves, strategies and policy measure of relevance for new emerging energy technologies could be discussed, e.g. R and D measures to effect radical innovations versus market based policy measures to effect learning and incremental cost reductions. Used in the right way, experience curves can assist several actors, such as financial analysts, researches and policy makers, in analysing and assessing strategies and policy measures.}
place = {Sweden}
year = {2003}
month = {Jul}
}