A report titled “Key Challenges Remain for Developing and Deploying Advanced Energy Technologies to Meet Future Needs”(PDF) from the Government Accountability Office, released last week, should be required reading for anything wanting to understand the challenges of transforming energy policy. Here is the bottom line (p. 53):

It is unlikely that DOE’s current level of R&D funding or the nation’s current energy policies will be sufficient to deploy alternative energy sources in the next 25 years that will reverse our growing dependence on imported oil or the adverse environmental effects of using conventional fossil energy. The United States has generally relied on market forces to determine the nation’s energy portfolio, primarily conventional supplies of oil, natural gas, coal, and nuclear energy. In contrast, advanced energy technologies have higher up-front capital costs that make them less cost competitive than conventional technologies. As a result, despite periodic energy price spikes caused by disruptive world events and about $50 billion (in real terms) in energy R&D funding since 1978, the United States has made only steady incremental progress in developing and deploying advanced renewable, coal, and nuclear technologies that can compete with conventional energy technologies. However, continued reliance on conventional technologies leaves the United States vulnerable to crude oil supply disruptions, with economic, energy security, and national security consequences.

And here is what the report recommends to the Congress (p. 54):

To meet the nation’s rising demand for energy, reduce its economic and national security vulnerability to crude oil supply disruptions, and minimize adverse environmental effects, the Congress should consider further stimulating the development and deployment of a diversified energy portfolio by focusing R&D funding on advanced energy technologies.