Projects and Related Studies
Using Volume Purchases to Transform Markets for Energy-Efficient Technologies: A Lessons Learned View from Practitioners
Ever since the Energy Crisis of 1973-1974, the United States and other countries have tried to bring more energy-efficient appliances, equipment, and practices into the market place at a more rapid pace than unmodified market forces would permit. The process of overcoming market barriers, also known as market transformation, requires: 1) the potential for manufacturing better equipment at acceptable costs; 2) informed buyers and sellers; 3) appropriate catalyst(s) to spur market forces; and 4) financing. Governments can provide several of these preconditions by organizing early volume purchases of new technology. Two recent examples of volume purchase programs organized by Pacific Northwest National Laboratory illustrate both the potential of such programs to transform markets and the types of issues that must be addressed in developing a successful program. The lessons learned can be used as the basis to improve energy efficiencies in other equipment for industrial and commercial application.
Project contact: Michael Scott