Summary: Congress earmarked about $1 billion for electricity-related research and development (R&D) in fiscal year 1996. Along with electric utilities, states, and manufacturers, the federal government has traditionally played a major role in this R&D, which includes such technologies as solar energy, fossil-fueled generating systems, and electric cars. The electric utility industry is undergoing deregulation and is becoming more competitive. At the same time, funding cuts are affecting electricity-related R&D. This report discusses (1) the changes that have occurred in the levels of electricity-related R&D and the reasons for those changes and (2) the impact of those changes on the types of R&D being funded. GAO provides information on the impact of reduced funding on six technologies--fuel cells, coal gasification, advanced gas turbines, wind power, photovoltaics, and electricity storage--in which the Energy Department participated. GAO also discusses alternative funding sources suggested by R&D managers and others.
