Energy, Economic, and Social Impacts of a Clean Energy-Related Economic Policy: Fuel Cells Deployment in Delaware

Clean energy-related economic policy is designed to promote new energy technology and vigorous economic development. However, this type of policy is typically implemented and evaluated separately from economic and energy policy makers and comprehensive assessment are rarely done. This study aims to analyze the policy effectiveness of a clean energy-related economic policy in the State of Delaware from energy, economic, and social equity perspectives. In 2011, the state of Delaware provided economic incentives to attract Bloom Energy in order to establish fuel cells industry, promote local economic prosperity, and provide clean energy. Accordingly, Bloom Energy established a fuel cell manufacturing plant and two fuel cells facilities in Delaware. This study evaluates the energy performance of these power generation facilities and concludes that Bloom’s fuel cells have around 45% efficiency. Although this company keeps sophisticating its technology, it has not met the economic goals (i.e., job creation and payroll) agreed with the Delaware government. Also, the Qualified Fuel Cell Provider Project (the QFCP), a special tariff for Bloom Energy, created equity concerns. This paper concludes that when a government provides economic incentives to support new technology development, social equity considerations are particularly in need. Cost-sharing equity, decision-making, information transparency, and knowledge enhancement are issues and lessons learned from this case study that are applicable to a broader context