Impediments to the development and use of alternative energy technologies

Abstract

The oil crises of the 1970s have stimulated governments to initiate a policy of increased liquid fuel independence. In New Zealand, centralised, large-scale projects have been the dominant means to implement this policy.

Small-scale, alternative energy technologies have played a secondary role. The potential benefits of alternative energy technologies are examined and appear to be promising. However, there are a range of impediments to alternative energy technologies.

To identify these impediments, the innovation process is used as an analytical device. Each phase of the process is examined, with the help of relevant literature on technological change. Potential impediments are identified that arise from the nature of research and development in firms, the behaviour of individual adopters and the actions of public institutions.

A case study, the production and use of biogas in Christchurch, is examined. It is found that there are several possibilities for increasing the production of biogas which may be economically viable. The Christchurch Transport Board bus fleet is identified as favourably situated to use biogas, provided that suitable technology is found for converting diesel buses to operate on methane.

Impediments to the development and use of biogas production and diesel/methane substitution technologies are identified, using the information developed earlier in the study. Important impediments to biogas production are the absence of local or regional energy policies and the rate of return required on investment, compared to that required of large-scale energy projects. For diesel/methane substitution technologies, technical difficulties, information problems and regulations are important impediments.

To overcome the impediments to alternative energy technologies, there are a range of policy measures that may be implemented. The policy measures will differ depending on the view of energy policy that is seen as appropriate. There is little empirical evidence as to which view of energy policy is 'best', so the implications of several simplified views are discussed.