Governments routinely invest in advanced technology through research, development and demonstration (RD&D). This has been one of the major avenues for fledgling technologies to proliferate in the private sector. The U.S. Department of Energy and various state governments have made impressive and exciting progress in bringing down the cost of renewables. However, for some technologies, investment in RD&D alone is not sufficient to facilitate a transition to everyday use in the private sector. In such cases, it may be necessary for the government to put its money where its mouth is by incorporating those technologies into the governmental infrastructure, thus underscoring the inherent value of those technologies and maximizing its research dollar.

Items ranging from advanced military material to recycled paper have all enjoyed private sector growth as a result of being included in government purchasing schedules. Iomega^™ a manufacturer of portable computer memory storage devices, has captured a majority private market share after conducting a study suggesting ways in which their products would benefit governmental agencies. After being added to the U.S. government’s supply schedule, Iomega^™ was able to market its Zip^™ drives as the new standard for portable media, with the hope of eventually replacing 3.5" floppy disk drives. While the success of Iomega^™ cannot be singularly attributed to government procurement, government demand for computers shipped with Iomega^™ products aided Iomega^™ to broker lucrative contracts with major computer manufacturers. Iomega^™ products can be found in most government agency stores ranging from the Department of Veterans Affairs to NASA. In fact, most new computers today are shipped with an internal Zip^™ drive.

This paper suggests strategies that would allow renewable energy technologies — which are reliable, efficient and, best of all, better for the environment than conventional alternatives — to benefit in ways similar to the Iomega™ example. One key element is leadership that, at the very least, is open to renewables. With an Executive Order on federal procurement of renewables coming out of the White House, that leadership may finally come. But, an “order” isn’t enough. Leadership must be sustained to make sure renewables are actually bought and used properly, so that installed energy capacity leads to consistent energy generation.

Just as important, leadership must also ensure that purchasing heeds the dynamics of the private market. Government procurement is only a single element of a larger strategy to provide renewables with the market exposure they deserve. The procurement process must prepare renewable energy firms for the private sector markets on which they ultimately will have to depend, rather than making them dependent on the nebulous world of government contracts. If this can be done — and we believe it can — government procurement will expose citizens to the potential of renewable energy, while providing responsible government through sustainable energy.

J. Bernard Moore, Research Associate
Roby Roberts, Executive Director
Dr. Adam Serchuk, Research Director and Executive Editor of Issue Brief Series
Virinder Singh, Research Associate
Mary Kathryn Campbell, Outreach Associate

April 12, 1999