Technology Transfer Mechanisms

1. Technology Transfer Mechanisms Opportunities and Challenges in the Renewable Energy Sector Dr Rona Wilkinson/Steven Hunt Practical Action Consulting, UK

2. Introduction • Background to Technology Transfer • Models and Mechanisms • Drivers and Barriers • Market Mapping • Incentives for Technology Providers • Conclusions

3. Technology Transfer • Definition • “the diffusion and adoption of new technical equipment, practices and know-how between actors in one geographical area to another” • Traditional technology protectionism • Why share? • Technology push vs. market pull

4. Models of Technology Transfer • Vertical • Transfer of equipment • No risk to provider • Quick results • One-way • Dependency risk • Simple linear model Technology Provider $$ Buyer Equipment Technology Recipient

5. Models of Technology Transfer • Horizontal • Knowledge transfer • Longer complex process • Investment required on both sides • Loss of provider control • Partnership/JV based • Long term sustainability Buyer $$ $$ Technology Provider A Technology Provider B Equipment Skills Knowledge

6. Mechanisms for Technology Transfer • Public-Private Partnerships • Government co-financed developments • Private-Private Partnerships • Joint Ventures with business fit • University-Private Partnerships • Targeted R&D collaboration • Technology Intermediaries • NGOs, Government

7. Examples • Philippines Geothermal • India Solar PV • Sri Lanka micro-hydro • China wind power • Brazil bioethanol

8. Drivers of Technology Transfer • Incentives encouraging investment • Reduced risk (fixed tariffs, guarantees etc) • Increased information exchange • Alignment of actor interests in market chain • Clear, consistent, long term market signals • Entrepreneurialism and education • Integrated planning

9. Barriers to Technology Transfer • Lack of awareness and knowledge • Red tape • Restrictions on returns to investors • Lack of security/stability • Inaccessibility of finance • Lack of government focus/ownership • Inappropriateness of technology

10. Driver or Barrier? • Intellectual Property Rights Law • Concentration and distribution of benefits • Competition and collaboration • Standards and Regulations

11. Market Mapping – Biomass e.g. Business Environment Food Security Contract Law Natural Resources Conflict /insecurity Planning Regs Electricity Regs Land use/ ownership Electricity Consumer Electricity Dist/Trans Plant Operator Plant Builder Component suppliers Wood Drying and Chipping Energy Crop Farmers Business Services Metering Finance Quality Control Agricultural Co-ordination Transport Engineering Consulting Debt Collection Storage

12. Incentives for Technology Providers • Return on Investment • Access to new markets • But must show market and revenue potential • Access to low cost production • For potential re-export, but may be competition • Access to development finance • Increased volumes (economies of scale) • CSR benefits to reputation

13. Conclusions • Need to understand gaps and issues in whole market, not just technology areas • Must consider capabilities and motivations on all sides and try to align • Need for clarity and consistency in planning, regulatory and incentive framework • Need to consider distribution of benefits and impacts as well as electricity

14. Thank you! Dr Rona Wilkinson/Steven Hunt consulting@practicalaction.org.uk