26: Financing energy innovation
Achieving net-zero emissions will require both radical and incremental technological advancements, necessitating substantial investment for clean energy innovation. However, many energy technologies are characterized by investment barriers like a high capital intensity or revenue uncertainty, that t...
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| Format: | Online |
| Language: | English |
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Edward Elgar Publishing
2026
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| Online Access: | https://directory.doabooks.org/handle/20.500.12854/176470 |
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| author | Kozian, Alyssa Polzin, Friedemann Steffen, Bjarne |
| author_browse | Kozian, Alyssa Polzin, Friedemann Steffen, Bjarne |
| author_facet | Kozian, Alyssa Polzin, Friedemann Steffen, Bjarne |
| author_sort | Kozian, Alyssa |
| collection | Directory of Open Access Books |
| description | Achieving net-zero emissions will require both radical and incremental technological advancements, necessitating substantial investment for clean energy innovation. However, many energy technologies are characterized by investment barriers like a high capital intensity or revenue uncertainty, that translate into market, system, and transition failures. These failures create two critical phases for energy innovation finance dubbed “valleys of death,” which mark critical conjunctions along the technology lifecycle. Targeted policy interventions are essential to overcome these valleys of death. During early stages spanning the “first valley of death,” grants and equity investments by public and private actors are essential for research, development, and demonstration activities to develop technologies and create first prototypes. To overcome the “second valley of death,” moving towards commercialization and large-scale diffusion, interventions for lowering the costs of capital, such as de-risking by state investment banks, have been proven effective to enable the necessary asset finance. In this chapter, after discussing the financing challenges faced by clean energy technologies, we explore typical financing sources and policy interventions aimed at overcoming the challenges. By aligning public and private investments, targeted policy interventions can accelerate the development and deployment of clean energy innovations, driving progress toward net-zero emissions goals. |
| format | Online |
| id | doab-20.500.12854ir-176470 |
| institution | Directory of Open Access Books |
| language | eng |
| publishDate | 2026 |
| publishDateRange | 2026 |
| publishDateSort | 2026 |
| publisher | Edward Elgar Publishing |
| publisherStr | Edward Elgar Publishing |
| record_format | ojs |
| spelling | doab-20.500.12854ir-1764702026-05-15T11:57:13Z 26: Financing energy innovation Kozian, Alyssa Polzin, Friedemann Steffen, Bjarne Clean Energy Innovation; Investment Barriers; Valleys of Death; Public Policy KNB RNFY PDR GBC Achieving net-zero emissions will require both radical and incremental technological advancements, necessitating substantial investment for clean energy innovation. However, many energy technologies are characterized by investment barriers like a high capital intensity or revenue uncertainty, that translate into market, system, and transition failures. These failures create two critical phases for energy innovation finance dubbed “valleys of death,” which mark critical conjunctions along the technology lifecycle. Targeted policy interventions are essential to overcome these valleys of death. During early stages spanning the “first valley of death,” grants and equity investments by public and private actors are essential for research, development, and demonstration activities to develop technologies and create first prototypes. To overcome the “second valley of death,” moving towards commercialization and large-scale diffusion, interventions for lowering the costs of capital, such as de-risking by state investment banks, have been proven effective to enable the necessary asset finance. In this chapter, after discussing the financing challenges faced by clean energy technologies, we explore typical financing sources and policy interventions aimed at overcoming the challenges. By aligning public and private investments, targeted policy interventions can accelerate the development and deployment of clean energy innovations, driving progress toward net-zero emissions goals. Published 2026-05-15T11:57:11Z 2026-05-15T11:57:11Z 2026-03-17 chapter 9781035310418 https://directory.doabooks.org/handle/20.500.12854/176470 eng image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International https://www.e-elgar.com/shop/gbp/handbook-of-energy-innovation-9781035310401.html https://www.elgaronline.com/edcollchap-oa/book/9781035310418/chapter26.xml Edward Elgar Publishing Edward Elgar Publishing 10.4337/9781035310418.00037 10.4337/9781035310418.00037 01ceac28-75b4-492a-8eec-f9b98bc6b28c https://creativecommons.org/licenses/by-nc-nd/4.0/ 9781035310418 Edward Elgar Publishing Cheltenham, UK open access |
| spellingShingle | Clean Energy Innovation; Investment Barriers; Valleys of Death; Public Policy KNB RNFY PDR GBC Kozian, Alyssa Polzin, Friedemann Steffen, Bjarne 26: Financing energy innovation |
| title | 26: Financing energy innovation |
| title_full | 26: Financing energy innovation |
| title_fullStr | 26: Financing energy innovation |
| title_full_unstemmed | 26: Financing energy innovation |
| title_short | 26: Financing energy innovation |
| title_sort | 26 financing energy innovation |
| topic | Clean Energy Innovation; Investment Barriers; Valleys of Death; Public Policy KNB RNFY PDR GBC |
| topic_facet | Clean Energy Innovation; Investment Barriers; Valleys of Death; Public Policy KNB RNFY PDR GBC |
| url | https://directory.doabooks.org/handle/20.500.12854/176470 |
| work_keys_str_mv | AT kozianalyssa 26financingenergyinnovation AT polzinfriedemann 26financingenergyinnovation AT steffenbjarne 26financingenergyinnovation |