10 Crazy Ideas That Could Change Energy

These are the best of times for energy innovation, says former Vice President Al Gore. He made the remarks to an auditorium full of energy-focused scientists, entrepreneurs, policymakers, and investors this week during the Department of Energy’s ARPA-E Summit, which highlights energy projects that the government has supported.

Gore, who has invested in energy tech companies through his London-based fund, Generation Investment Management, and Silicon Valley firm Kleiner Perkins, was quick to remind the audience that despite the “perfect timing,” their success was not guaranteed. Building energy tech startups, or any startup, is just really tough, he pointed out.

Gore wasn’t the only one to effuse restrained optimism about the future of energy technology at the seventh annual conference. Energy Secretary Ernie Moniz showed excitement over the dramatic cost reductions in energy technologies like solar, wind, and LEDs, and said he thought the ARPA-E program had so far “proved its worth.” However, he said while the program had hit intermediate metrics of success, real success in commercializing these technologies would probably take another five to 10 years to realize.

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Here are the numbers on the program: Over seven years the ARPA-E program has funded 475 energy projects with a collective $1.3 billion. Forty-five of those projects have been able to secure an additional $1.25 billion in funding from the private sector, like corporate investors, and venture capitalists. Thirty-six of the projects have formed new companies, and 60 of the projects have gone on to partner with other government agencies like the Department of Defense.

If you think those odds are pretty shabby, they were never intended to be particularly high. The ARPA-E program is meant to focus on energy moonshots, or high-risk, early stage energy ideas that likely won’t succeed but could be a game changer if they do. It’s similar in style to Google’s moonshot lab, Google X, where Googlers seek to try crazy experiments. No surprise then that one of ARPA-E’s early projects, the high-altitude wind turbine startup, ended up in Google X’s lab.

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In recent years a common complaint is that the ARPA-E program has become much less risk averse. Indeed, Moniz said during an interview at the event that ARPA-E needs to “guard against getting too comfortable.”

Tech billionaire Bill Gates is also bullish on the necessity of energy moonshots. He has called for thousands of new energy ideas, or "energy miracles,” even ones that might “sound a little crazy.”