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Page 1: Marine Energy Action Plan 2010 - Amazon Web Servicesregensw.s3.amazonaws.com/1275819743_963.pdf · 2010-06-06 · Rt Hon Lord Hunt of Kings Heath OBE Minister of State for the Department

Marine Energy Action Plan 2010Executive Summary & Recommendations

Page 2: Marine Energy Action Plan 2010 - Amazon Web Servicesregensw.s3.amazonaws.com/1275819743_963.pdf · 2010-06-06 · Rt Hon Lord Hunt of Kings Heath OBE Minister of State for the Department
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Contents

Foreword 3

ExecutiveSummary 5

1.Introduction 131.1 Scope 141.2 TheVisionandOpportunity 141.3 TheChallenges 19

2.SummaryofRecommendations 232.1 TechnologyRoadmapping 242.2 Environment,PlanningandConsenting 262.3 FinanceandFunding 282.4 Infrastructure,SupplyChain&Skills 292.5 TidalRange 31

3.NextSteps&FurtherWork 373.1 Immediatetasks 383.2 Ongoingtasks 38

AnnexA 41MembersofMarineEnergyActionPlan 41ContributorstotheMarineEnergyActionPlandraftingand/orMembersofWorkinggroups 43

AnnexB 45EconomicsofWaveandTidalEnergy 45WaveEnergy 46TidalStream 47TidalRange 48

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Foreword 3

Foreword

Ourseaspresentafantasticandasyet,largelyuntappedassetthatcangeneratecleanenergythatwillboostourtransitiontoalowcarboneconomy.Waveandtidalenergytechnologieswillnotonlymakeavaluablecontributiontomeetingourlongtermcarbonreductiontargetsbutincreasethesecurityofourenergysupplyandcreatejobsandexportopportunities.

WaveandtidalstreamintheUKisatapivotalpointinitsdevelopment.WearerightlyseenasaworldleaderinthedevelopmentofthesetechnologiesandtheUKisaglobalfocalpointfordeployment.TheUKalsohasnumeroustidalrangesitesthatareidealforthedeploymentoftidalrangetechnologies.Wehaveabigopportunitytoembracethewiderbenefitsofallthesetechnologies,andweneedtocapitaliseonthepotentialofthissectoranddrivetheindustryforward.

TheGovernmentiscommittedtomeetingthatobjective.TheUKalreadyhasworld-classtestingcentresinNaREC,EMECandWaveHub.AlongsideourcolleaguesintheDevolvedAdministrations,Governmenthasputinplacecomprehensivesupportmeasuresforresearch,demonstrationanddeployment–particularlythroughTheCarbonTrust,theTechnologyStrategyBoard,theEnergyTechnologiesInstitute,theRegionalDevelopmentAgenciesandDECC.But,thereisfurtherworktodotomakelargescaledeploymentofwaveandtidalenergyareality.

ThisMarineEnergyActionPlanrepresentsanongoingopportunityforUKGovernmentandindustry,together,tosettheagendainacollaborativeandstrategicmanner.Thisdocumentrepresentsthecontributionsofmanyplayersacrossthepublicandprivatesector.Itflagsupthemainbarrierstomovingwaveandtidalenergyforwardintocommercialdeploymentandconsiderswhateachneedstodoovercomethem.

Thiswillbethefirststeponacontinuingjourneythroughwhichwewillworktogethertoenablewaveandtidaltechnologiestotaketheirrightfulplaceinadiverse,low-carbonenergymix.

RtHonLordHuntofKingsHeathOBEMinisterofStatefortheDepartmentofEnergyandClimateChange

ForewordTHEABOVEMUSTSTAYINANDCONNECTEDTOTHISPAGEINORDERTOGENERATETHERUNNINGHEAD

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Executive Summary

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6 MarineEnergyActionPlan2010Executive Summary & Recommendations

Executive Summary

TheUKisaworld-leaderinwaveandtidalstreamtechnologiesandtheglobalfocal-pointfortheirdevelopmentduetothelevelofresourcearoundourshores,whilsttheUKalsohasnumeroustidalrangesites,includingtheworld’ssecondhighesttidalrangeintheSevernEstuary.Therearewiderbenefitsandopportunitiestoembraceinthedevelopmentofallthesetechnologies,andtocapitaliseonthepotentialofthemarineenergysector,thereisaneedtodriveforwardthisemergingindustry.

ThisMarineEnergyActionPlanisintendedtosetoutanagreedvisionforthemarineenergysectorto2030.ItoutlinestheactionsrequiredbybothprivateandpublicsectorstofacilitatethedevelopmentanddeploymentofmarineenergytechnologyandintendstofulfilthevisionsetoutintheUKRenewableEnergyStrategyandLowCarbonIndustrialStrategy.Coveringwave,tidalrangeandtidalstreamenergy,theActionPlanhasaUK-widefocuswhilerespectingthediversityofpolicymakingrolesundertheDevolutionSettlement.TherearelikelytobemanyopportunitiesforcollaborativeworkingandinformationsharingacrosstheUKasthissectordevelops;theUKGovernmentandDevolvedAdministrationshaveagreedtoworktogetherandpursuetheseopportunitieswhereveritispossibletodoso.

Itisenvisionedthatmarinerenewableenergycouldplayanimportantroleintheperiodto2020asthesectorbeginstorolloutlargerarraysofdevices.Thiswillbefollowedbylargescaledeploymentintheperiodbeyond2020thatwillhelptomeettheGovernment’spolicyforan80%cutincarbonemissionsby2050andwhichwillcreateanewandsuccessfulUKindustry.ApotentialdeploymentplanforwaveandtidalstreamtechnologiesisindicatedbelowinFigure1.

Thisdocumentaimstoencouragethosealreadyinvolvedinthesectortoengagemorecloselyandtostimulatethosethatarenewtothesectortoactupontheopportunitieswhichthedevelopmentandgrowthofaninnovative,newUKbasedindustrypresents.TherecommendationsfromthisPlanhoweverfocusontheactionsrequiredbythekeyactorsintheindustryincluding:Governmentanditsrelevantdepartments(e.g.DECC,BIS,Defra,DfT);DevolvedAdministrations(NorthernIrelandExecutive,ScottishExecutive,WelshAssemblyGovernment);theInfrastructurePlanningCommission,Non-DepartmentalPublicBodies(NDPB)(MarineManagementOrganisationandMarineScotland);RegionalDevelopmentAgencies);TheCrownEstate;deliverypartners(CarbonTrust,EnergyTechnologiesInstitute,TechnologyStrategyBoard),UKfundingcouncils;StatutoryAgencies(NaturalEngland(NE),CountrysideCouncilforWales(CCW),JointNatureConservationCommittee(JNCC),EnvironmentAgency(EA),ScottishNaturalHeritage(SNH),NorthernIrelandEnvironmentAgency(NIEA));marineenergytechnologydevelopers;Utilities;theinvestmentcommunity(Angel,VentureCapital,PrivateEquity);manufacturers;ports&marineinfrastructureorganisations;highereducationcentresandacademia.

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ExecutiveSummary 7

Figure 1Potential Deployment plan for wave and tidal stream technologies out to 20301

2010 2015 2020 2025

UK Wave and Tidal Stream Deployments

FULL-SCALE DEMO

SMALL ARRAYS (2 - 10MW)

LARGE ARRAYS (10 - 100MW)

1st GENERATIONSYSTEMS

2nd and 3rd GENERATION SYSTEMS

BUILDOUT OF PROJECTS

2030

Capital support for researchand development projects

Capital and revenue support schemesfor array deployments

Long-term market support

ThefullsectorengagementapproachasusedintheMarineEnergyActionPlanhasallowedgovernmentandindustrytodiscusshowtoaddressthekeyissuesforthedevelopmentofthisrapidlymovingsector.OverthelastyeartheScottishExecutive2andtheDepartmentofEnterprise,TradeandInvestmentinNorthernIreland3havepublishedtheirownmarineenergyroad-mappingreports.However,theMarineEnergyActionPlanhasconsideredtheissuesfacingthesectorataUKlevel.AlthoughtheExecutiveSummaryhasbeenproducedbyDECC,ithasbeenworkinginconsultationwithalltherelevantstakeholders(seeAnnexA:membersofmarineenergyactionplanGroup)toproducearealistic,practicalandpragmaticdocument.WorkundertheActionPlanwassplitintofiveworkinggroups:TechnologyRoadmapping;Environment,Planning&Consenting;Finance&Funding;Infrastructure,SupplyChain&Skills;andTidalRange(whichactedasasubgrouptoincludealloftheseareasoffocus).

Manyofthetechnologiesinvolvedindevelopingtidalrangeprojectsareverydifferentfromthoseusedforwaveandtidalstream–constructionbeingmoreakintolargecivilengineeringinfrastructure.Becausethereareanumberofareaswherethebarriersandchallengesfacingtidalrangedivergefromothermarinerenewables,theMarineEnergy

1 UKERC,ETIRoadmap(2010)2 FREDSMarineEnergyGroup–MarineEnergyRoadMap,

http://www.scotland.gov.uk/Resource/Doc/281865/0085187.pdf3 ADraftOffshoreRenewablesStrategicActionPlan2009,

http://www.offshorenergyni.co.uk/EnvironmentalReport.html

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8 MarineEnergyActionPlan2010Executive Summary & Recommendations

ActionPlanhasconsideredthespecificissuesrelatingtotidalrangeseparatelyandhasdevelopedsector-specificrecommendationstoaddressthese.

Asaresultofdiscussionsintheworkinggroupsfivehighlevelthemesemergedwhichfocuson:

• theneedtoprovethetechnology,particularlytostimulateIong-terminvestorconfidence;

• providingtheappropriateregulatoryframeworks;

• ensuringappropriatefundingisinplaceforthesector(publicandprivate);

• co-operationandengagementacrossthesectorandsupplychain;and

• theimportanceofinterdependencyofallthesethemes.

ProvingtheTechnologyThesectorrequirestechnologythatworksandthatcansuccessfullyandcontinuouslyoperateintheharshconditionsofthemarineenergyenvironment.Waveandtidalstreamareemergingtechnologieswhicharetakingstepstoprovetheirabilitytoharnesstheenergyfromtheseasandestuaries.Withregardtowaveenergytechnologies,thereareaplethoraofdevicesandweareyettoseeaconvergenceofideasandaconsolidationofthemarkettowardsdesignconsensus.Thesedifferentdesignconceptsaresonumerousinpartbecauseofthevariouslocationsatwhichwaveenergycanbegenerated;forexample,offshore,nearshoreandtherangeofdifferentenergyconversionapproacheswhicharepossible.Conversely,tidalstreamdeviceshaveseensomeaspectsofdesignconsensusoccurringwithatrendtowardshorizontalaxisturbines.Overall,thedevelopmentof

Construction of the 650kW Pelamis Mark I wave energy converter prototype

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ExecutiveSummary 9

waveandtidalstreamdevicesrequirecostreductionandfurtherstepchangesintechnologydevelopmentthereafter.Costreductionislikelybefoundthroughfundamentalchangesintheengineeringdesignofdevices;anchoring;moreefficientuseofmaterials;newandinnovativewaysofconductinginstallation,operationandmaintenance;andincreasedefficiencyofcomponents.Traditionaltidalrangetechnologies(barragesinparticular)useprovenhigh-headturbinetechnologies,howeverevensomeapplicationsoflagoonandimpoundmentstructuresareyettobefinalised.Hybridtidalrangetechnologiesfacethesamechallengesaswaveandtidalstreamandmoreenvironmentally-friendlyandpotentiallycommerciallyattractivelowheadturbinesrequireconsiderabledevelopmentattention.

TheMarineEnergyActionPlankeyrecommendationforTechnologyRoadmappingthemeisthattheUKGovernmentdeliverypartnerscontinuetoprovideappropriatelevelsofsupporttoensuretheeffectiveandsuccessfultechnologydevelopmentbyfunding:

• firstandsecondgenerationseatrialsofwaveandtidalstreamdevices;

• arraysofdevices;and

• developmentofnoveltidalrangetechnologies.

MoredetailandotherrecommendationscanbefoundinSection2.1andSection2.5.

AppropriateRegulatoryFrameworkTheregulatoryframeworkinformsthesectorastohowitwillbeabletooperatewhilstprovidingthesectorwithtransparencyonthestrategyandplansforUKmarineenergydevelopmenttoseethelong-termgain.Italsoprovidesthenecessaryprotectionsagainstthepotentialadverseeffectsofdeployingstructuresinthemarineenvironment.Theframeworkincludesprovisionofamarinerenewables-readygridsystem,clearermarineplanningprocessesandapproachestoenvironmentalmonitoringandassessment,StrategicEnvironmentalAssessmentforwaveandtidalenergy(recentlyannouncedinMarch2010inEnglandandWales,andalreadycompletedforScotlandandNorthernIreland),andthepotentialopportunitiesforfurthercommercialleasing.Theseallprovidesignalstoencouragenewinvestorstoentertheindustry.TheimplementationoftheMarineandCoastalAccessAct2009isalsoamajordevelopmentinthesustainablemanagementoftheUKmarinearea.

Marine Current Turbines’ 1.2MW SeaGen tidal turbine in Strangford Narrows, near Portaferry, Northern Ireland

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10 MarineEnergyActionPlan2010Executive Summary & Recommendations

TheMarineEnergyActionPlankeyrecommendationfortheEnvironment,Planning&ConsentingthemeisthattheUKGovernmentsetupandparticipateinarepresentativestrategiccoordinationgroupofstatutoryagenciesandotherrelevantstakeholderstoproduceaplanningconsentingroadmapthatexploresthekeyissuessurroundingthedeploymentofdevices.

MoredetailandotherrecommendationscanbefoundinSection2.2and2.5.

FinancialSupportFinanceandfundingisimperativetothisdevelopingsectorandwithoutsignificantinvestmentfrombothpublicandprivatesources,theopportunitytoharnessthefullpotentialofthissectorwillnotberealisedintheUK.Thepotentialmarketsizeandgrowthopportunityshouldprovideinvestorswithaclearmessagethatthereisalong-termfutureforthismarineenergyindustry.Leveragingfinancefromtheinvestorcommunity,utilitiesandmajormanufacturerswillensureacontinuedfocusonreducingcostsandthecommoditisationofcomponentsforwaveandtidalstreamtechnologiesinparticular.AppropriatepublicfundingisalsoveryimportantandGovernmentconsiders,thatwithintheconstraintsofpublicspendingroundsanddepartmentalbudgets,theimmediatepriorityistoprovidetargetedcapitalsupportforappliedresearchanddevelopmentthroughtosupportfordemonstrationanddeployment,whichwillfocusonasmallnumberofmarket-leadingtechnologiestoenabletheconsolidationandgrowthofthesector.Appropriatetargetedsupportalsoexistsforgenerictechnologydevelopmenttoensurecontinuedcostreductionsnecessaryforthesector.Thiswouldbecombinedwiththeuseofappropriatelonger-termmarketsignals.AnexampleofthisistheRenewablesObligationwhichistheGovernment’smainmechanismforsupportingrenewableenergytechnologies.ItworksbyplacinganobligationonlicensedelectricitysupplierstoproduceaspecifiednumberofRenewableObligationCertificatesperMWh,whichthenincreasesannually,orriskpayingapenalty.Theoverallobjectiveforthesupporttoprovidesufficienttechnologypushtoprogressdevicesthroughtoearlycommercialstageswhilstalsoprovidingamarketpullandsufficientconfidencetogivethelevelsofinvestmentneededtomovetoalargescaledeploymentphase.

TheMarineEnergyActionPlankeyrecommendationsfortheFinanceandFundingthemearethattheUKGovernment:

• seektoensurethattheappropriatelevelsoftargetedfundingareavailable,tobridgethetechnologymarketfailuresthatexistinthisdevelopingsector(subjecttothebudgetsinthenextpublicspendinground);

• takeaccountofevidencesuggestingthatcommercialdeploymentofmarinetechnologiesmaynotbeeconomicatcurrentlevelofsupportinthescheduledRenewablesObligation(RO)bandingreviewsettotakeplaceinAutumn2010,whilerecognisingthatsupportlevelsalsoneedtotakeintoaccounttheimpactonenergyconsumers;and

• buildonexistingdialoguebetweenfundingbodiesandothers(e.g.LowCarbonInnovationGroup)bysettingupastrategiccoordinationgroupthat

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ExecutiveSummary 11

encompassesGovernmentandDevolvedAdministrations,RegionalDevelopmentAgencies,CarbonTrust,TSB,ETI,EPSRCSupergenMarinetoensurethatastrategicoverviewforGovernmentfundingexistsandthatvaluefromGovernmentexpenditureismaximised.

MoredetailandotherrecommendationscanbefoundinSection2.3and2.5.

SupplyChainCo-ordinationCo-operation,engagementandthebuildingofmeaningfulpartnershipsacrossthemarineenergysectorandsupplychainisvitaltotheindustry.Thiswillenablethesectortoreadyitselfforcommercialisationandlargescaledeploymentofwaveandtidalstreamtechnologiesandalsoforthedevelopmentoftidalrangesites.Theextensivedevelopmentofthesupplychain(manufacturers,ports,vessels,transportinfrastructure)alongsideskillsandeducationofthesectorwillberequiredtoprovidethenecessaryworkforceforanever-expandingmarinerenewablesindustry.Thereisalsoscopeforcross-sectorcoordinationonthedevelopmentofenvironmentalbaselinedataofearlydevicedeploymentwhichcouldformavaluablesector-wideresource.

TheMarineEnergyActionPlankeyrecommendationfortheInfrastructure,SupplyChainandSkillsthemeisthattheUKGovernmentandallrelevantstakeholdersinthesectorcapitaliseonopportunitiesformarineenergybylearningfromandbuildingonsynergiesrelatedtotheskillsandsupplychainforoffshorewind.

MoredetailandotherrecommendationscanbefoundinSection2.4and2.5.

Overall,itisimportanttorecognisethatnoneofthesefactorscanbeconsideredindividually.Theyareallinterdependentandrequirefullengagementandexchangeacrossthesectortoensurethefullbenefitsarerealisedfortheindustry.

ThereisanimmediateneedforeveryonetoworkintandemandthisMarineEnergyActionPlanoutlinesthekeyactionsthatthesectorarealltaskedtodeliver.FulldetailsoftheseareprovidedinChapterTwo.

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12 MarineEnergyActionPlan2010Executive Summary & Recommendations

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1. Introduction

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14 MarineEnergyActionPlan2010Executive Summary & Recommendations

1. Introduction

1.1 ScopeTheUKisclassedastheworldleaderinthedevelopmentofmarinerenewableenergytechnologies,duetothehighlevelofmarineenergyresource,itshighlyskilledexpertiseandtheworld-classtestingfacilitiesthatareavailableandplanned.Withtheexceptionoftraditionaltidalrangehighheadturbinetechnologies,theembryonicstatusofthewaveandtidalstreamenergytechnologycreatesconsiderablechallengesforitsdevelopment.ThisMarineEnergyActionPlanfocusesonwaveandtidalstreamandtidalrangetechnologies–usingthephrase‘marineenergy’todenotethesegenerationtechnologies.However,thisdoesnotincludemarinebiomassoroceanthermalenergyconversion,osmoticpressureoroffshorewind.ItalsodoesnothaveanyspecificreferencestotheworkrelatingtothefeasibilitystudyforSevernTidalPower.ItdoeshoweverrecognisethatsomeoftheinfrastructuredevelopmentsforourmassiveoffshorewindprogrammewillprovidesomeofthebuildingblocksforacceleratingtheexploitationofallourUKmaritimeenergyresources.

1.2 TheVisionandOpportunityItisenvisionedthatmarinerenewableenergycouldplayanimportantroleintheperiodto2020asthesectorbeginstorolloutlargerarraysofdevices.Thiswillbefollowedbymassdeploymentintheperiodbeyond2020thatwillhelptomeettheGovernment’spolicyforan80%cutincarbonemissionsby2050andwhichwillcreateawholenewsuccessfulUKindustry.Governmentagreeswiththesectorsassessmentforwaveandtidalstreamthat1-2GWinstalledcapacitycouldbeachievedby2020.Althoughaspirationalandchallenging,itisbroadlyrealisticifallstakeholdersareabletoputinplacetheappropriatemechanismstoenablethislevelofdeployment.Fromthisitthenprovidesasuitableplatformonwhichtobuildlargerscaledeploymentto2030andbeyond.Similarly,ifagoodproportionoftidalrangeprojectsthatareplanned(e.g.Mersey,Solway),cometofruition,itcouldseethedeploymentlevelof1GWby2020irrespectiveofanydecisionsontheSevernEstuary.Todothis,thereisanimmediateneedtoenablethesectortotakeadvantageoftheUK’sstrongpositionbycreatingtheopportunityforthesupplychainandindustryinthismaritimesector.

Subsequently,thereisaclearcasetosupportmarineenergydevelopmentbecauseofanumberoffactorsincluding:

• Levelofenergyresource;

• BenefitstotheEconomy,Industry&Employment;

• LowCarbonElectricity;and

• Energysecurity.

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1.Introduction 15

1.2.1 TheResource

TheUKleadstheworldinmarinetechnologyandhasworld-classresourcesinallofthethreemarinesectors:wave,tidalstreamandtidalrange.WaveandtidalenergyhavethepotentialforbulkelectricitysupplyintheUKandworkcarriedoutbytheRenewableUK(formerlyBWEA)andTheCarbonTrusthassuggestedthatmarine(waveandtidalstream)energymayhavethepotentialtomeet15-20%oftheUK’scurrentelectricitydemandinthefirstmaincommercialexploitationphase.4

Thefullextentofthewaveandtidalstreamresourcewhichcanbeexploitedforenergygenerationisdependentonmanyfactors(e.g.turbineinteractions,devicespacingandcumulativeimpact)andastechnologiesdevelop,understandingoftheavailableresourcewillimprove.EstimatesindicatethatthepracticalresourcelevelforwaveenergyintheUKwatersisintheorder50TWh/year5,(whichisequivalenttotheannualelectricitydemandofapproximately11millionUKhouseholds6)butwithahighertechnicalpotential.ThetotalUKtidalstreampotentialisindicatedtobeintheorderof17TWh/year7,8,9(whichisequivalenttotheannualelectricitydemandofapproximately4millionUKhouseholds10).Thisisderivedfromamethodthatprovidesthemost

4 BWEA,PathtoPower,20065 TheCarbonTrust(2006)FutureMarineEnergy6 Calculatedbydividingpracticalresourcelevelforwave(TWh/yr)byaverageannualUKhouseholdelectricity

demand(Source:DECC,RegionalandLocalAuthorityElectricityConsumptionStatistics2005-2008,http://www.decc.gov.uk/en/content/cms/statistics/regional/electricity/electricity.aspx)

7 SKM(2008)QuantificationofConstraintsontheGrowthofUKRenewableGeneratingCapacity8 Black&Veatch(2005)PhaseIIUKTidalStreamEnergyResourceAssessment,CarbonTrust9 SustainableDevelopmentCommission(2007)TurningtheTide,TidalPowerintheUK,10 Calculatedbydividingtotaltidalstreampotential(TWh/yr)byaverageannualUKhouseholdelectricitydemand

(Source:DECC,RegionalandLocalAuthorityElectricityConsumptionStatistics2005-2008,http://www.decc.gov.uk/en/content/cms/statistics/regional/electricity/electricity.aspx)

The 650kW Pelamis wave energy converter undergoing sea trials

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16 MarineEnergyActionPlan2010Executive Summary & Recommendations

conservativeestimate11andalthoughthereareanumberofmethodologiestoestimatethevaluesoftidalstreamresource,itisacceptedbythesectorastheappropriateanalysistechniqueinsometidalenergyconditions.Othermethodsofestimatingthetidalstreamresourceresultinhighertechnicalpotentials12,13,14,15.ThereareuncertaintiesregardingthesepiecesofworkbutthepotentialresourcetheysuggestissufficientlylargetojustifyurgentfurtherresearchbyGovernment.

Overall,thepotentialopportunitiespresentedbythismarineresourcehasledtotheUKbecomingafocusgloballyforthedevelopmentanddeploymentofwaveandtidalstreamtechnologies.

TheUKalsohassignificanttidalrangeresourcewiththeworld’ssecondhighesttidalrangesitebeinglocatedintheSevernEstuarywithabenchmarkenergyoutputof17TWh/yrfromaCardiff-Westonbarrage.TheotherhighestresourcesitesintheUKincludetheMersey(1.4TWh/yr),Duddon(0.212TWh/yr),Wyre(0.131TWh/yr)andConwy(0.06TWh/yr).Throughthesetidalrangeprojectsandothersthatthereisanopportunitytopotentiallyprovideupto13%oftheUK’selectricitygenerationfromtidalrangealone16.

MapsoftheUK’swave,tidalstreamandtidalrangeresourcefromtheMarineAtlas(2008)aregiveninFigures2,3and417.

Figures 2, 3 and 4Mean Spring Tidal Range, Mean Spring Tidal Stream and Annual Mean Significant Wave Height17

11 Blunden,L.S.,Bahaj,A.S.,(2006)Tidalenergyresourceassessmentfortidalstreamgenerators12 Houlsby,G.T.,Oldfield,M.L.G.,Draper,S.,“TheBetzLimitandTidalTurbines,”ReportCommissionedby

LunarEnergy,2008.13 Taylor,G.I.,“TidalFrictionintheIrishSea,”PhilosophicalTransactionsoftheRoyalAcademy,1918.14 Salter,S.H.,Taylor,J.R.M.T.,(2007)Vertical-AxisTidal-CurrentGeneratorsandthePentlandFirth.Proceedings

oftheInstitutionofMechanicalEngineers,PartA:JournalofPowerandEnergy,15 DavidJ.C.MacKay(2008)“SustainableEnergy–withoutthehotair”.UITCambridge,2008.

ISBN978-0-9544529-3-3.Availablefreeonlinefromwww.withouthotair.com.16 SustainableDevelopmentCommission(2007)TurningtheTide,TidalPowerintheUK,17 DepartmentofBusiness,Enterprise&RegulatoryReform(BERR)(2008)AtlasofUKMarineRenewable

EnergyResourceshttp://www.renewables-atlas.info/

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1.Introduction 17

1.2.2 BenefitstotheEconomy,Industry&Employment

TheUKhasauniqueopportunitytocapturethebenefitsofthisnewsectorthroughtheentiresupplychain;fromresearchanddevelopmentthroughtoengineering,manufacturing,installation,operationandmaintenance.Thisbuildsonourmaritimetradition,mostrecentlyexpressedoverthepast40yearsinoilandgasexplorationandcurrentlywithoffshorewinddevelopments.ThedevelopmentofmarinetechnologieswillleadnotonlytoasubstantialmarineenergygenerationindustryintheUK,butmoreimportantlytoasubstantialsupplychain.IftheUK’stechnologicalleadismaintained,alargepartofthatsupplychainwillbebasedintheUKresultinginanattractiveenvironmentfordomesticorinwardinvestmentinmanufacturingfacilities.

Developmentofthedomesticfacilitieswillalsoprovidesignificantopportunityforexportsofbothtechnologyandknowledge.Withregardstoemployment,inthelongertermthepotentialforjobsarisingfromthewaveindustryalonewillcontinuetoincrease,peakingat16,000inthe2040swithabout25%ofthemsupportingUKexports18.ManyoftheleadingdevicedevelopersarefromtheUKandtheyenjoyacomparativeadvantageduetotheextensivedomesticknowledgeandexperience.TheUKhasengineeringandmanufacturingexpertiseinthecomplexsystemsrequiredforthepowerconversionsystems,whicharehighvalueandcanbeexportedglobally.TheUK’soffshoreexperienceofthoseindustriesintheNorthSeashowsthattheyareclearlyvaluableforwavedeviceoperationsandmaintenanceandalsoforscienceandengineeringexpertise.Thisallowsthestrong,alreadyembeddedUKworkforcetotransferskillsacrosstothisdevelopingsectorandtheabilitytobuildonthesupplychainandinfrastructurebeingcreatedforoffshorewind.

1.2.3 LowCarbonElectricity&EnergySecurity

Ifmarineenergytechnologiescanbesuccessfullydevelopedtheyhavethepotentialtomakeasignificantcontributiontowardsachievingourmediumandlongertermsrenewableenergyandemissionsreductiongoals.Amid-leveldeploymentprojection

18 CarbonTrustFocusforSuccess2009

Aquamarine’s Oyster device being readied for deployment

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18 MarineEnergyActionPlan2010Executive Summary & Recommendations

of2.6GWinstalledcapacityofwaveandtidalstreamby2030(onthebasisoffairlyconservativeassumptions)couldprovidecarbonabatementbenefitsof17MtofCO2,valuedat£520millionto2030(withthecentralprojectedEU-ETScarbonprice).By2050,waveandtidalstreamcouldsave61MtofCO2valuedat£1.1bn.Withregardstotidalrangethemid-leveldeploymentprojectionof950MWofnon-Severnestuarytidalrangecapacitycouldsaveafurther9MtofCO2by2050valuedat£330m19.

ThedeliveringoflowcarbonelectricitythroughadiversemixofrenewableenergytechnologiesisindicatedintheLowCarbonTransitionPlanpublishedin2009toprovideamechanismthathelpstheUKtomovetoalowcarboneconomy.Itdeliversenergysecuritybyreducingtheriskofproblemsthatmayarisewithover-relianceononetypeoftechnologyorfuel.Marineenergytechnologiesareseentodiversifytheenergymixinalongertermstrategy,astheyareonlyexpectedtocontributeupto3%ofrenewableelectricityin2020.However,theUKannualrenewableenergytargetof15%by2020isextremelychallengingandeveryfewterawatthoursofgenerationwillbeimportantintryingtomeetit.Asreferencedinsection1.3,theextentoftheresourceavailableisextensiveandprovidesadomesticsourcethatreducestherelianceonimportedfuels,soimprovingtheUK’ssecurityofenergysupply.

Althoughmarineenergyisintermittent,thebenefitsoftidalenergyisthatitispredictablyintermittent(oreminentlypredictable)soitcanformpartoftheenergysystem’sbaseloadtoprovidebulkelectricitytothegrid,unlikeoffshorewindwhoseunpredictableintermittencyprovidesagreaterchallengewithregardtobalancing

19 Ernst&Young,Black&VeatchEconomicsofWaveandTidalEnergy(seeAnnexBformoreinformation).

Inspection of SeaGen’s 16m turbine blades at Harland and Wolff shipyards, Belfast

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1.Introduction 19

electricitysupplyanddemand.Waveenergy,althoughstillintermittentismuchmorepredictableoverlongerperiodsthan,forinstance,windgivingmorescopeforshorttermplanningofgridusageHavingadiversifiedrenewablesmixwithmarineenergyaswellaswindintermittentgenerationwillreducetheneedforback-upandreservecapacity,andhenceleadtofuelandCO2savings.AccordingtoresearchcompletedbyRedpoint20,theuseofmarineenergywillallowforreductioninextrarenewablecapacityrequiredtoreducewastageofwhengenerationexceedsdemand,whichcouldpotentiallysaveuptoaround£900mayearincosts.

However,thereisstillaneedtostrikeabalancebetweenmakingthemostoftheUKmarineopportunityandfindingsolutionstothechallengesitpresents.Thesechallengesaredescribedbelow.

1.3 TheChallengesToenableanambitiousandchallengingdeploymentlevelformarineenergytechnologiesthereareanumberofhurdlesthatthesectorfaces,whichtheMarineEnergyActionPlanworkstreamshavetargeted.

TechnologyRoadmapThetechnicalpotentialofwaveandtidalstreamdevicesstillneedstobeprovenandthereisstillalongwaytogountilthesectorreachesthetechnicalpotentialforlargescaledeployment.Therehavebeenanumberoftechnologicalsuccesseswithgettingdevicesinthewaterandthisroutetowardscommercialisationneedstocontinue.

Therearehowever,anumberofotherfactorsthathaveadirectroletoplayinenablinglargescaledeploymentwhichwillrequireaddressingbeforethecreationofapotentiallysignificantindustry.Theseinclude:

Environment,planningandconsentingThenewmarineplanningsystemwillguideanddirectdecision-makingbutacontinuedclearprocessforplanningandconsentingframeworksisrequiredinatimelymannertoensurethesectordoesnotexperiencedelaysandcancontinuetodevelop.NewdevelopmentconsentingsystemsunderthePlanningAct2008andMarineandCoastalAccessAct2009provideopportunitiesformorestreamlinedprocessesthataremoretransparent,efficientandeffective,andtheseneedtobefullyrealisedaspartofthenewlegislativeframework.Theidentificationanddevelopmentofsitesforthedeploymentofmarineenergywillalsogivetherightsignalsandconfidencetothesector,andwillencouragenewinvestors.

FinanceandfundingThesectorrequiresasignificantleveloffinancialsupportbothpublicandprivatetoenableinitialprototypedeploymentandoflarge-scalearraysandsignificantprojects.Thecostsassociatedwithdevelopingmarinetechnologiesareparticularlyhighforanumberofreasons.Testingandtriallinginthemarineenvironmentisexpensiveandtheharshseaconditionscreateadditionalrisksanddifficulties.

20 Redpoint,2009,The benefits of marine technologies within a diversified renewable mix.Savingbasedonarenewablesmixof60:40windtomarinegenerationlevels(ora40:60ratio),comparedtoa100%windgenerationrenewablesmix.

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20 MarineEnergyActionPlan2010Executive Summary & Recommendations

Afull-scaleprototypetestcouldpotentiallyhavecapitalcostsintherangeof£10millionormore,soitisunlikelythatwithoutfurthersupportthesectorcanmakethemostoftheopportunitythatthismarineenergyresourcepresents.Providingextrasupporttomarineandtherebyinducingitssubsequentdeploymentwouldrequiresubstantialresourcesinthemediumtolongtermtobemadeavailable.Initiallythemainlevelsofsupportwouldbeprovidedviatargetedcapitalgrantstodevelopthetechnologythroughtocommercialdemonstration.Later,subsidyinthecommercialdeploymentphasewouldbelargelythroughmarketsupportmechanisms(e.g.RenewablesObligation).Thesemaincostsareexpectedtooccurasthedeploymentlevelsstepup.Thoseinitialdeploymentswillthenlooktoseeareductionincostswithbenefitsfromtheeconomiesofscaleandlearningcurvesassociatedwithlargescaledeploymentbeyond2030.However,thoseactualcostswilldependonalargenumberoffactors,includinghowearlytechnologicalandengineeringbarriersareovercome,thedevelopmentofsupplychaincapacity,continuedtechnicalprogressanddeploymentrates.

Oneofthekeychallengesfacingmainstreamdeploymentofmarineenergyistheneedtoreducecostsofgenerationtolevelscomparabletootherrenewablesinthelongerterm.Aswithanyemergingtechnology,initialcostswillbehighuntilcostreductionsthroughlearningandeconomicsofscalearerealised.Thisisamodelthathasbeenfollowedbyothertechnologiessuchaswindandsolar.DECCandtheScottishGovernmentcommissionedBlack&VeatchandErnst&Youngtocollectdataonthecurrentgenerationcostsofmarinetechnologiesandtomodelthedevelopmentofthesetechnologiesfromnowto2050.Thereisaverylargeamountofuncertaintysurroundingsuchprojectionswhichgosofaroutintothefuture.Theresultsonthelevelisedcosts21ofwaveandtidalstreamandtidalrangeareprovidedinAnnexB:EconomicsofWaveandTidalEnergyandshouldberegardedasillustrative.However,theresultsdoshowsomeencouragingfiguresandrecognisethistrendforsignificantreductionincostsovertime.

Infrastructure,supplychainandskillsAmarinerenewables-readyUKgridsystemisessentialforthelevelofdeploymentrequiredtohelpmeetclimatechangetargets,howevermarinerenewablesalsorequiresasignificantbuilding-upofthesupplychaininfrastructureandtheappropriateskillstoenableit.

ThesupplychainrequirementsaimtobuildontheconsiderableexpertiseavailableintheUK’shistoricmaritimesector,promotingbothdomesticinvestmentinfacilitiesassociatedwiththesector(includingportsandvessels,manufacturingandengineering)whilstalsoboostingboththeexportoftechnologyandknowledgeworldwide.

TidalRangeThenatureofconventionaltidalrangeprojects,especiallytheconstructionoftidalbarragesandlagoonspresentdifferentchallengestothosefacedbywaveandtidalstream.Financing,consentingandlicensingarelikelytobecomparableacrossall

21 Levelisedcostsrefertothecostoftheenergy-generatingsystemincludingallthecostsoveritslifetime,e.g.initialinvestment,operationsandmaintenance,costoffuel,costofcapital

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1.Introduction 21

themarinesectorsbuttherearesignificantareasofdifference.Barrageconstructionismoreakintolargescalecivilengineeringinfrastructuredevelopmentthanthedeploymentofwaveortidalstreamarrays.Becauseofthissupplychainrestrictionsonmaterialavailability(e.g.cementandaggregates)andavailabilityofcivilandmaritimeconstructionservicesaresignificantrisksintheseprojects.Theenvironmentalrisksofhigh-headturbinetidalrangedevelopmentsarealsoperceivedasbeinggreaterthanwaveandtidalstreamprojects.Inparticularchangestothemarineenvironmentcancoveramuchwiderarea,especiallytheeffectsontheshorelineoftheimpoundedareaarisingfromchangestothetidalcycle.

TherecommendationssetoutintheMarineEnergyActionPlanlargelyapplyacrossthemarineenergysector.However,wherethereareissueswhichareuniquetotidalrangeprojects,thesehavebeenconsideredseparatelyandsectorspecificrecommendationsproducedfortidalrange.

Consequently,thesehurdlesandthespecificchallengesthatthemarineenergysectorfaceshasbeenthesubjectofconsiderablediscussionwithintheMarineEnergyActionPlanmeetings.ThefollowingsummaryofrecommendationssetsouttheactionsthattheGovernmentandsectorwillseektodeliverovertheforthcomingdevelopmentperiod.

Open Hydro’s prototype tidal turbine being tested at the European Marine Energy Centre’s Fall of Warness tidal testing site

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22 MarineEnergyActionPlan2010Executive Summary & Recommendations

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2. Summary of Recommendations

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24 MarineEnergyActionPlan2010Executive Summary & Recommendations

2. Summary of Recommendations

Therecommendationsbelowareanamalgamationofrequirementsbythemanyplayersacrossthepublicprivatesector(seeAnnexAforMarineEnergyActionPlanmembers),flaggingupthemainbarrierstomovingwaveandtidalenergyforwardintocommercialdeploymentandconsidersrecommendationsofwhatneedstobedonetoovercomethem.

2.1 TechnologyRoadmappingforWaveandTidalStreamAtthehighestlevel,technologydevelopmentanddeploymentwillrequiremeasurestoaddresstheunderpinninggenerictechnicalchallenges.Thesecanbesummarizedas:predictability,manufacturability,installability,operability,scalability,survivability,reliability,andaffordability.TheseareshowninFigure4below.

Figure 5Generic Challenges involved in Marine Energy Development (source adapted from UKERC)

Inrelationtothis,fortheeffectivedevelopmentofmarinetechnologythereisaneedtostrikeabalancebetweentechnology-pushandmarket-pullmechanisms,toallowfordesignconsensus,butatthesametimeavoiding‘lock-out’oflonger-termbreakthroughtechnologieswhichmayallowforstep-changeperformanceandcostimprovements.Policyhasanimportantroletoplayinthemeetingtheroadmaptolargescaledeployments.ItisvitalthatboththeoverallMarineEnergyActionPlanandthetechnologyroadmapchapterareusedtoinformpolicydevelopmentand

Predictability

Manufacturability

InstallabilityReliability Challenges

Affordability

Survivability Operability

Scalability

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2.SummaryofRecommendations 25

thereforeprovideguidanceforfundingbodiesintermsofallocationofdevelopmentfunding.

Toensureeffectiveandsuccessfuldevicedeploymentsandunderpinefficientcostreductionsforthesector,theMarineEnergyActionPlanrecommendsthatUKGovernmentdeliverypartnerssuchasUKFundingCouncils,TheCarbonTrust,TSB,ETIandtheDevolvedAdministrationscontinuetosupporttechnologydevelopment(atboththedeviceandenablingtechnologylevel,throughouttheRD&Dcycle)inthefollowingareas

• Deviceandsystemdemonstrators:byfundingbothfirstandsecondgenerationseatrialsaswellasarraysofdevices.Itisalsoimperativethatcosteffectiveinstallationandrecoverymethodsaredevelopedalongwithappropriateoperationandmaintenancetechniques.

• Device-components:bysupportingtheadvancementofperformance,reliabilityandsurvivabilityofprojectsthroughfundingthedevelopmentofarangeofenablingcomponents(e.g.inareassuchasfoundationsandmoorings;powertakeofftechnologyandwet-mateableconnectors-toensureacosteffectivecouplingtogrid).

• Guidelinesandstandards:Fortheoverallsectortoprogress,guidelinesandbestpracticeshouldbeestablishedandsupported.ThiswillleadtotheUKmarinesectorbeingrecognisedbyInternationalStandardsBodies(e.g.InternationalElectrotechnicalCommission)thatinturnwillenabletheefficientexportofUKmarineenergytechnologyintointernationalmarkets.Thesectorshouldalsodeterminewhatcriticalstandardsneedtobedevelopedandtowhattimelines.

• Tooldevelopmentbyexploringwithindustryhowtodeveloparangeofmodellingtoolsinareassuchasresourceanalysistoolsthatareessentialtounderpindevelopment.Thisappliestobothdevicesandprojectsthroughtodesignoptimisationtoolstofacilitatethemanufacturabilityandaffordabilitytotechnology.

Finally,itmustbenotedthatsignificanttechnologydevelopmentprogrammesareprogressinginternationally.TheMarineEnergyActionPlanrecommendsthatGovernmentanditsdeliverypartnersengageandcollaboratewithinternationalfundingbodiesasappropriatetoensureacohesiveandcoherentapproachtotechnologydevelopment

Construction of Aquamarine’s Oyster device at Nigg, Scotland

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26 MarineEnergyActionPlan2010Executive Summary & Recommendations

2.2 Environment,PlanningandConsentingTheMarineEnergyActionPlanrecommendsthat:

• ThefullStrategicEnvironmentalAssessment(SEA)forWaveandTidalEnergyinEnglishandWelshwatersaspartoftheUKOffshoreEnergy2SEAthattheGovernmentlaunchedinMarch2010isdeliveredinatimelymanner.TheMarineEnergyActionPlanrecommendsthatDECC:

– treatsthedevelopmentoftheMarineelementsoftheSEAasapriorityandensuresthatitiscompletedandinplacewithintheexpectedSpring2011timetable,and

– ensuresthattheworkundertakenintheSEArelatingtoenvironmentalmonitoringandeffectsisfedintotheActionPlanworkstreamondevelopingapragmaticandproportionateapproachtotheenvironmentalmonitoringofmarineenergydeployment.

• thatallrelevantstakeholdersfullyengageinthedevelopmentoftheUKOffshoreEnergy2StrategicEnvironmentalAssessmenttoensuretheviewsoftheindustryarefedintotheprocess;and

Inaddition,theMarineEnergyActionPlanendorsesthatsubjecttoamarineenergySEAfortherelevantareasbeingundertakenTheCrownEstatewilllookatopportunitiesforcommercialleasingopportunitiesinEnglandandWales.IntheinterimTheCrownEstatewillconsiderdemonstrationarraysupto10MWor20devicesonacasebycasebasis.TheCrownEstateisinitiatingaprogrammeofactivitiesrelatingtocommercialoffshorerenewableenergyleasinginNorthernIrelandandScotlandfollowingthecompletionofrelevantSEAsinthesecountries.

TheMarineEnergyActionPlanalsorecommendsthat:

• thereisengagementbetweenGovernment,DevolvedAdministration’s,StatutoryAgencies,Academia,TechnologyDevelopers,Utilities,andtheMarineManagementOrganisationtoensurethattheneedsofallaretakenintoconsiderationintheMarinePolicyStatement(seepre-consultationdocumentpaperonthedraftUKMarinePolicyStatement22);

• theUKGovernmentandWelshAssemblyGovernmentshouldensurethatitpreparesaNationalPolicyStatementformarineenergy,orupdatestheRenewableEnergyNPSassoonasthenecessaryinformationisavailabletodevelopaplanorprogrammeforthedeploymentofmarineenergyintheUK;

• thatMarineScotlandandtheMMOliaisetotakeadvantageofanyexperienceslearntfromtheMarineScotlandsetting-upprocessestoenablethearrangementsofthenewmarineplanningsystemtorunsmoothly;

22 http://www.defra.gov.uk/environment/marine/legislation/planning.htm

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2.SummaryofRecommendations 27

• theMMOseekclarityandunitywithTheCrownEstateregardingbaselineinformationonwaveandtidalresourceareas,consentsandleasing;

• GovernmentandDevolvedAdministrationsmakethepreparationofguidanceforprojectdevelopersregardingtheprocessforconsentingandlicensingapriority;

• AllstakeholdersworkwiththeStatutoryAgenciestoclarifythoseareasofgreatestimportanceforfutureenergyextractionsothatthereisawarenessacrossthesectorinthedesignationofMarineConservationZonesandMarineProtectionAreas;and

• thatDECCcontinuestoexplorewithallrelevantstakeholdershowtocreateandmaintainasector-widesharingofenvironmentaldataandinformation.

Toreflecttheneedforgreatersynergiesacrossregulatoryandindustrybodies,Government(includingDECC,DEFRA,RDAs,DevolvedAdministrations)andTheCrownEstateshouldsetupandparticipateinarepresentativestrategiccoordinationgroupincludingtheMMO,MarineScotland,CCW,NaturalEngland,ScottishNaturalHeritage,NorthernIrelandEnvironmentAgencyandTheEnvironmentAgency.Thisgroupwouldbetaskedto:

• produceaplanning/consentingroadmapformarinerenewablesinalltheirforms;

• explorewiththegroupwhatoptionsmaybeavailabletominimisecostsassociatedwithenvironmentalmonitoring;

• determinewhatstrategicenvironmentalresearchcouldaidtheindustryandindoingsoidentify:

– appropriateenvironmentaldatacollectionmethodologiesincludingconsiderationofa‘deployandmonitor’approach,aswellasconsiderationfordevelopmenttimescales;

– howtomakebetteruseofexistingmodellinganddecisionsupporttools;and

Aquamarine’s Oyster wave energy device being tested at the European Marine Energy Centre, Orkney

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28 MarineEnergyActionPlan2010Executive Summary & Recommendations

– progressandencourageresearchscientiststoactivelydeveloppredictivetoolsappropriateforuseinthemarinerenewableenergysectorincludingthosetoaddressimpactsoflargescaledevicearrays.

2.3 FinanceandFundingTheMarineEnergyActionPlanrecommendsthatGovernmentandDevolvedAdministrationsseekto:

• pushcost-effectiveandviablemarineenergytechnologiesthroughtocommercialisationandshouldconsider,withintheconstraintsofthepublicspendingroundsandDepartmentalbudgetshowbestfundingshouldbeappliedtofacilitatethedevelopmentofthemarineenergysector.TheGovernmentconsidersthattheimmediatepriorityforpublicfundingisbelievedtobetheprovisionoftargetedcapitalgrantsforappliedresearchanddevelopmentthroughtosupportfordemonstrationanddeployment.Thiswillhelptofocusonasmallnumberofmarket-leadingtechnologiestoenabletheconsolidationandgrowthofthesector.

• retainthecurrentUK-wideMRDFmechanismsorsimilarinstrumentaswasstatedintheUKRenewableEnergyStrategypublishedinJuly2009(subjecttothebudgetsinthenextpublicspendinground)andtoextenditsoperationtocovernewdevicesreachingdemonstrationstageintheperiod2011–2014.

• ensurethattheappropriatelevelsoftargetedfunding(e.g.grantsforR&Danddemonstration,venturecapital)areavailabletobridgethetechnologymarketfailuresthatexistinthisdevelopingsector,subjecttothebudgetsinthenextpublicspendinground.

• takeaccountofevidencesuggestingthatcommercialdeploymentofmarinetechnologiesmaynotbeeconomicatcurrentlevelofsupportinthescheduledRenewablesObligation(RO)bandingreviewsettotakeplaceinAutumn2010,whilerecognisingthatsupportlevelsalsoneedtotakeintoaccounttheimpactonenergyconsumers.

• buildonexistingdialoguebetweenfundingbodiesandothers(e.g.LowCarbonInnovationGroup)bysettingupastrategiccoordinationgroupthatencompassesGovernmentandDevolvedAdministrations,RegionalDevelopmentAgencies,CarbonTrust,TSB,ETI,EPSRCSupergenMarinetoensurethatastrategicoverviewforGovernmentfundingexistsandthatvaluefromGovernmentexpenditureismaximised.

• continueitsroletoleverageventurecapitalandprivateequityfundingintothesectorwhilstalsoconsideringhowbesttomanageitsresourcestomaximisetheprivatecapitalavailable.

• highlightwaveortidalasoneofthethreeprojectapplicationsforfundingundertheEuropeanCommissionintheNewEntrantsReserve.ThisReserve(€300millionof

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2.SummaryofRecommendations 29

allowances)isavailableuntil31December2015(administeredbytheEuropeanInvestmentBank)tohelpstimulatetheconstructionandoperationofuptotwelvecommercialdemonstrationprojects,whichalthoughaimedatcarboncaptureandstorage(CCS)projectsitalsoappliestodemonstrationprojectsofinnovativerenewableenergytechnologies,ofwhichincludebothwaveandtidalstream.

InadditiontothistheMarineEnergyActionPlanrecommendsthat:

• GovernmentandthemarineenergyindustryshouldjointlyseektoobtainmaximumbenefitfromEUfundingprogrammes.

• technologydevelopersandtheirutilitypartnerswhereappropriateworktogetherinthenext6monthstopreparetheinformationwhichwillbenecessaryforthescheduledROreview,inordertoprovidethemostaccurateinformationrelatingtothetechnologiestoensuretherightlevelofROCsisset.

• investmentcommunity(angel,venturecapital,privateequity)withsufficientcapitalshouldbeencouragedorcontinuetosupporttechnologydevelopersduringtheirprototypedevelopment.

• majormanufacturersandutilitiesshouldbeencouragedorcontinuetoinvesttheircapitalandskillstothemarineenergyindustrythroughoutthenextphasingofdevelopmentandtowardstheconsolidationandgrowthofthesectorandinparticulartofundinitialarraydevelopment.

• manufacturersandrelevantsupplychainmoveinasquickaspossibletotakethewaveandtidaltechnologiesforwardtodeploymentscale,forexample,byhelpingtodevelopthecommoditisationofcomponents,withopportunitiestakenwherepossibletobuildontheUKinfrastructurebeingcreatedtosupportoffshorewinddevelopments.

Aquamarine’s Oyster wave energy device being deployed at the European Marine Energy Centre’s Billia Croo wave testing site

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30 MarineEnergyActionPlan2010Executive Summary & Recommendations

2.4 Infrastructure,SupplyChain&SkillsTheMarineEnergyActionPlansetsoutwiththefollowingrecommendationsthat:

• althoughtheElectricityNetworksStrategyGroup(anetworkindustrygroupco-chairedbyDECCandOfgem)concludedinitsreportin2009thatnoadditionalreinforcementswouldberequiredonthemaintransmissionsystem(beyondthosealreadyidentifiedtomeetthepotentialextrademandfromwaveandtidal),itisnecessaryfortherelevantstakeholderstocontinuetooutlineconcernsandtoexchangeinformationrelatingtogridsystemsthroughtheexistingcommunicationschannelsandtheMarineEnergyActionPlanworkinggroups.

• Governmentandprivatesectorresearchprogrammes(inparticularthoseaimedatsupportingtherenewableenergysectormanagedbytheOffshoreRenewablesResearchSteeringGroup)shouldensurethatmarineenergyiscomprehensivelyreflectedwithintheirresearchpriorities.

• thePortsStudyforOffshoreWind(2009)undertakenbyDECCandanycontinuingworkontherequirementsforoffshorewindaspartofthisstudywouldalsoconsidermarineenergy,toenablethesharingofinfrastructure.

• developersoutlinetheirrequirementsforportsinfrastructure(includingtransportconsiderations)totheportsassociationsandrelatedcompaniesoperatinginthisdomaininadditiontotheRegionalDevelopmentAgenciesandtheDevolvedAdministrations.

• Portoperatorsconsultwithwave,tidalstreamandtidalrangedevelopersregardingtheirneedspriortoportmodificationorexpansion.

• Government,DevolvedAdministrationsandallrelevantstakeholdersinthesectorcapitaliseonopportunitiesformarineenergybylearningfromandbuildingonsynergiesrelatedtotheskillsandsupplychainforoffshorewind.

• Government,DevolvedAdministrations,developers,otherstakeholdersandothersector/environmentalgroupsactivelyengageintheexistingmarine,renewableenergyandenvironmentalandinfrastructurefora(e.g.NauticalOffshoreRenewableEnergyLiaisonForum,MarineIndustriesLeadershipCouncil)toidentifycriticalengagementopportunitiesandensurethatthespecificneeds/plansofthemarineindustryarereflectedintheiractivities/discussions.

• DECCengagewithDfTandotherrelevantdepartmentsondevelopmentoftheGBNationalPolicyStatementforports.

• Government,DevolvedAdministrationsandRegionalDevelopmentAgenciescapitaliseonthecurrentskillsbasealreadyestablished,notablyfromtheoffshorewind,oilandgas,fisheries,shipping,bycontinuingtoemployastrategicapproachtotransferskillsanddevelopahighlyexperiencedworkforcefortheemergingindustry(e.g.theCentresofExcellenceandMarineSkillsCentresaspartofinitiativesbythe

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2.SummaryofRecommendations 31

southwestEnglandRDAandthroughinitiativesintheforthcomingLowCarbonSkillsConsultationledbyDECC).

• allrelevantstakeholdersshouldprovidecollectiveandformalisedresponsestotheforthcomingLowCarbonSkillsConsultationledbyDECC.

• DECCengagewithrelevantdepartmentsonthefurtherdevelopmentoftheforthcomingLowCarbonSkillsreport.

• technologydevelopers,utilitiesandotherrelevantpartiesshareknowledgeandinformationonvesselrequirementstoprovideamorestreamlinedprocesswithregardstovesselavailability.Ithasalsobeensuggestedthatthesectorisencouragedtolookattheopportunitiesforthereuseofdecommissionedvessels.

• manufacturersandrelevantsupplychainbecomemoreawareoftherequirementsoftheindustry,andwiththeknowledgethatitwillrequiresomebespokeequipment,manufacturingfacilitiesandastrongskillsbasefromwhichtoescalatetheindustryforward.

• allrelevantstakeholdersshouldprovideinformationtohighereducationcareersadvisers,allowingthrough-flowofanindustryrelevantworkforce.

• theTSBcontinuetopromotewaveandtidalenergyactivitiesthroughitsKnowledgeTransferNetwork.Thiswillhelptoreflecttheneedsofthemembersandcanfocusonenablinginnovationthroughthenetworks,whichcanthenresultinagreaternumberofKnowledgeTransferPartnerships(KTP).

• technologydevelopersusetheKTPmechanismtogainknowledgeonavarietyofissuesincludingthosethattheywouldn’thaveanin-housecapabilitytoaddress.

• thereisseamlesssupportprovidedfromdevelopersandutilitiestothepresentandforthcomingUKtestfacilitiesincludingEMEC,NaREC,WaveHubandothertanktestingfacilities.

• EMEC,NaREC,WaveHubandothertanktestingfacilitiesensurethatsufficientsupportisgiventodevelopersandutilitiesforprojectdeliveryatthosesitesthroughtools,adviceanddevice‘clinic’support.

• thereiscontinuedcollaborationbetweentechnologydevelopers,EMECandmanufacturingcompaniestoenableaspeediercommoditisationofstandardsector-componentswhichcanthenbeusedtoestablishconsistencyandtocreateaviablecostbase.

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32 MarineEnergyActionPlan2010Executive Summary & Recommendations

2.5 TidalRangeAspartofthereviewofRenewablesObligationbandingscheduledtocommenceinOctober2010theActionPlanrecommendsthatGovernmentandDevolvedAdministrationsshouldalsotakeintoconsiderationwhetherthereanyemergingtidaltechnologiesthathavenotalreadybeencapturedbythedefinitionsassetoutinthecurrentbandsoftheRenewablesObligationOrder2009.

ThefullStrategicEnvironmentalAssessment(SEA)forWaveandTidalEnergyinEnglishandWelshwatersaspartoftheUKOffshoreEnergy2SEAthattheGovernmentlaunchedinMarch2010isdeliveredinatimelymanner.TheMarineEnergyActionPlanrecommendsthatDECC:

– treatsthedevelopmentoftheMarineelements(includingtidalrange)oftheSEAasapriorityandensuresthatitiscompletedandinplacewithintheexpectedSpring2011timetable,and

– ensuresthattheworkundertakenintheSEArelatingtoenvironmentalmonitoringandeffectsisfedintotheActionPlanworkstreamondevelopingapragmaticandproportionateapproachtotheenvironmentalmonitoringofmarineenergydeployment.

Aerial view of Port of Liverpool on the Mersey Estuary, where a feasibility study has been undertaken for a tidal range development

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2.SummaryofRecommendations 33

• allrelevantstakeholdersfullyengageinthedevelopmentoftheUKOffshoreEnergy2StrategicEnvironmentalAssessmenttoensuretheviewsoftheindustryarefedintotheprocess;and

• GovernmentandDevolvedAdministrationsincludethefulldetailsandimpactsoftidalrangedevelopmentsintheUKOffshoreEnergy2StrategicEnvironmentalassessmentthatistobecarriedout,includinglessonslearnedfromworkcarriedoutbyDECCinrelationtotheSevernTidalPowerFeasibilityStudy.

Inaddition,theMarineEnergyActionPlanendorsesthatsubjecttoamarineenergySEAfortherelevantareasbeingundertakenTheCrownEstatewilllookatopportunitiesforcommercialleasingopportunitiesinEnglandandWales.IntheinterimTheCrownEstatewillconsiderdemonstrationarraysupto10MWor20devicesonacasebycasebasis.TheCrownEstateisinitiatingaprogrammeofactivitiesrelatingtocommercialoffshorerenewableenergyleasinginNorthernIrelandandScotlandfollowingthecompletionofrelevantSEAsinthesecountries.

TheMarineEnergyActionPlanalsorecommendsthatGovernmentandDevolvedAdministrationsseekto:

• considertheneedforfurthergrantfundingofnoveltidalrangetechnologiesinitsupcomingspendingreviewprocesses;and

• promotecollaborativeworkbetweenGovernment,DevolvedAdministrations,projectdevelopers,statutoryconsulteesandotherstakeholderstounderstandcurrenttechnologiesandmethodologiesthatseektoreduceenvironmentalimpactsoftidalrangewhilstworkonfuturetechnologiesandmethodsalsocontinuestoprogress.

TheActionPlanrecommendsthatDECC,relevantdepartmentsandstakeholdersincludetheneedsofthetidalrangesectorinanyrelevantinitiativesaimedataddressingskillsandsupplychainissuesintherenewablessector,includingthewiderconstructionandotherissuesspecifictotidalrangedevelopments.

TheActionPlanshouldalsoensurethattheneedsofthetidalrangesectorarefullyintegratedinproposalsandactivitiesarisingfromtherecommendationsinthisdocument.Inparticular,thosethatalsoapplytotidalrangeincluderecommendationsthat:

• projectsidentifiedbytheprivatesectorshouldhavetheaimofdeliveringmaximumaffordableenergywithacceptableimpactsontheenvironmentwhilstalsoclearlycommunicatingboththecostsandbenefitsarisingfromtheproject.Thisshouldallowpotentialpartners,fundersandregulatoryauthoritiesmakemoreeffectivedecisionsonprioritisinginvolvementin/approvalofschemes.Informationshouldincludecarbonreductiontargets,calculationsofcarbonabatementandlifecyclecostingincomparisonwithotherformsofenergygeneration;balancingtheseagainstthecost(e.g.intermsoffinanceandfunding,andenvironmentalimpact).

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34 MarineEnergyActionPlan2010Executive Summary & Recommendations

• technologydevelopersensurefutureproposalsfortidalrangeenergyprojectsshowtheircleareconomic,socialandenvironmentaleffectsthroughthefosteringofstrongrelationshipswithnational,regionalandlocalauthorities,andpublic/privatepartnershiparrangements.Thiswillensurethatprojectdeveloperswillgivedueconsiderationtoallthoserelevantpoliciesandobjectives.

• technologydevelopersandtheirutilitypartnerswhereappropriateworktogetherinthenext6monthstopreparetheinformationwhichwillbenecessaryforthescheduledROreview,inordertoprovidethemostaccurateinformationrelatingtothetechnologiestoensuretherightlevelofROCsisset.

• GovernmentandDevolvedAdministrationstakesintoaccountevidencesuggestingthatcommercialdeploymentofmarinetechnologiesmaynotbeeconomicatcurrentlevelofsupportinthescheduledROCbandingreviewsettotakeplaceinAutumn2010,whilerecognisingthatsupportlevelsalsoneedtotakeintoaccounttheimpactonenergyconsumers.

• Allrelevantstakeholdersshouldprovideinformationtohighereducationcareersadvisers,allowingthroughflowofanindustryrelevantworkforce.

• Government,DevolvedAdministrationsandRegionalDevelopmentAgenciescapitaliseonthecurrentskillsbasealreadyestablished,notablyfromtheoffshorewind,oilandgas,fisheries,shipping,bycontinuingtoemployastrategicapproachtotransferskillsanddevelopahighlyexperiencedworkforcefortheemergingindustry(e.g.theCentresofExcellenceandMarineSkillsCentresaspartofinitiativesbytheSouthWestEnglandRDA,andthroughinitiativesraisedintheforthcomingLowCarbonSkillsConsultationledbyDECC).

• Developersoutlinetheirrequirementsforportsinfrastructure(includingtransportconsiderations)totheportsassociationsandrelatedcompaniesoperatinginthisdomaininadditiontotheRegionalDevelopmentAgenciesandDevolvedAdministrations.

• Portoperatorsconsultwithwave,tidalstreamandtidalrangedevelopersregardingtheirneedspriortoportmodificationorexpansion.

• DECCengagewithDfTandotherrelevantdepartmentsondevelopmentofthenationalpolicystatementforports.

• thattheUKGovernmentandWelshAssemblyGovernmentshouldensurethatitpreparesaNationalPolicyStatement(NPS)formarineenergy,orupdatestheRenewableEnergyNPSassoonasthenecessaryinformationisavailabletodevelopaplanorprogrammeforthedeploymentofmarineenergy.

• Government,DevolvedAdministrationsandprivatesectorresearchprogrammes(inparticularthoseaimedatsupportingtherenewableenergysectormanagedbytheOffshoreRenewablesResearchSteeringGroup)shouldensurethat

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2.SummaryofRecommendations 35

theneedsofthetidalrangesectorarecomprehensivelyreflectedwithintheirresearchpriorities.

• thatthePortsStudyforOffshoreWind(2009)beingundertakenbyDECCandanycontinuingworkontherequirementsforoffshorewindaspartofthisstudywouldalsoconsidermarineenergy,toenablethesharingofinfrastructurewhenmarineprojectsareatastagetofullycommercialise.

• thatGovernment,DevolvedAdministrationsandallrelevantstakeholdersinthesectorcapitaliseonopportunitiesformarinetolearnfromandbuildonsynergiesrelatedtotheskillsandsupplychainforoffshorewind.

• Government,developers,otherstakeholdersandothersector/environmentalgroups(e.g.NOREL)activelyengageintheexistingmarine,renewableenergyandenvironmentalforatoidentifycriticalengagementopportunitiesandensurethatthespecificneeds/plansofthemarineindustryarereflectedintheiractivities/discussions.

• Governmentexplorewiththerelevantstakeholdershowtocreateandmaintainasector-widesharingofenvironmentaldataandinformation.

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36 MarineEnergyActionPlan2010Executive Summary & Recommendations

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3. Next steps & Further Work

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38 MarineEnergyActionPlan2010Executive Summary & Recommendations

3. Next steps & Further Work

FromitsinceptiontheMarineEnergyActionPlanwasseenasthefirststepinanongoingprocesswhichwillcontinuetoinformandguidethedevelopmentofthemarineenergysector.Therecommendationslistedhererepresentonlytheinitialstageofthisprocess.ItwillbenecessaryforGovernmentandthemembersoftheMarineEnergyActionPlan(seeAnnexA)continuetoassesshowallpartiesareprogressingagainsttheActionPlanrecommendationsandtocontinuetorevisetheminthelightofindustrydevelopmentandevents.

TheforwardprocessoftheActionPlanwillincludethefollowing:

3.1 Immediatetasks:DECCalongwithActionPlanmemberswillcontinuetocompilethefindingsofthisinitialphaseoftheActionPlanintoastandalonedocument,whichwillexpandonandprovidebackgroundtotheActionPlanrecommendationstoformthe“Preliminary Findings Of The Marine Energy Action Plan 2010”.

DECCanticipatereleasingthisdocumentinadraft,work-in-progressformontheMarineEnergyActionPlanpagesoftheDECCwebsiteinlateMarch201023.ThefindingsdocumentshouldthenbecompletedinconjunctionwithMarineEnergyActionPlanmembersandtobeavailableinfinalformbySummer2010.

TheMarineEnergyActionPlanmemberswillneedtoconsidertherecommendationsmadewithinthisdocumenttoproducea“Prioritisation and development timeline”todeterminethetimescaleswithinwhichtherecommendationsoftheActionPlanwillneedtobeimplementedandcarriedout.Thisshouldbemappedagainstanticipatedmilestonestocreateacriticalpathfordevelopmentofthesector.

ThistaskshouldbecarriedoutduringthesixmonthsfollowingthepublicationoftheMarineEnergyActionPlanrecommendations.

3.2 Ongoingtasks:Annual review, update and revision of the Marine Energy Action Plan:DECC,incooperationwithotherpublicsectorpartners,theprivatesectorandstakeholdersshouldpublish,annually,areviewofprogressagainsttherecommendationsintheActionPlan.Thisreviewwillincludeupdatestoexistingrecommendations,proposalofnewrecommendations,asummaryofprogressinthesectorthroughouttheyearandrevisionoftheActionPlantimeline.

23 MarineActionPlanwebsite:http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/explained/wave_tidal/funding/marine_action_/marine_action_.aspx

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3.Nextsteps&FurtherWork 39

ThefirstreviewwillbepublishedbyDECCinSpring2011andonanannualbasisthereafter.

Other ad hoc and ongoing tasks:OthertaskswillbeaddedinresponsetoneedarisinginthecourseofworkontheActionPlanandeventsaffectingthedevelopmentofthesector.

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40 MarineEnergyActionPlan2010Executive Summary & Recommendations

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Annex A: Members of the Marine Energy Action Plan

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42 MarineEnergyActionPlan2010Executive Summary & Recommendations

Members of the Marine Energy Action Plan Steering GroupOrganisation NameAquamarinePower NeilDavidsonAtlantisResourcesCorporation MikeSmithCountrysideCouncilforWales(CCW) AndrewHillDepartmentforBusinessInnovation JaniceMunday,SunethraMendis&SkillsEnergyTechnologiesInstitute RichardKnightE.onEngineeringLtd DrTimForrestEnvironmentAgency StephenOatesHMTreasury JonParkerInternationalPower SteveRileyMarineCurrentTurbines PeterFraenkelNaturalEngland RachelBathurstNorthWestRDA JoeFlanaganOceanPowerTechnologies PaulJordanPeelHoldings IainTaylorPelamis MaxCarcasRenewablesAdvisoryBoardMarineGroup AndrewMillRenewablesUK(formerlyBritishWind OliverWraggEnergyAssociation)RenewableEnergyAssociation GaynorHartnellRollsRoyce/TidalGenerationLimited GedHeffernanScottishandSouthernEnergy WillSteggalsScottishExecutive NealRaffertySiemens MikeRollsSouthWestRDA ClaireGibsonTheCarbonTrust MatthewSpencer,StephenWyattTheCrownEstate MartinSimpsonTechnologyStrategyBoard DerekAllenTUC MattDykesUKEnergyResearchCentre HenryJeffreyWelshAssemblyGovernment RonLovelandScottishPower MandyGloyer

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AnnexA:MembersoftheMarineEnergyActionPlan 43

Marine Energy Action Plan Working Group Members (including drafting contributors)Organisation NameAssociatedBritishPorts(ABP) ChrisWillow,AlexPepper,AlysMitchellABPmer BillCooperAEA JamesCraigAlstom MikeGriffiths,AndyComptonAquamarinePower SianMcGrathAtkins JanetteShawAtlanticResourceCorporation MikeSmith,EdRollings,

FrancescaWigginsAWSOcean SimonGreyBAESystems ChrisSkinner,GeoffButlerBergensisCapital FrederickMowinckleBritishPortsAssociation DavidWhiteheadCountrysideCouncilforWales(CCW) AndrewHill,JohnHamer,KateSmith,

SarahWoodCheckmateSeaEnergy/Anaconda DesCramptonCentricaEnergy NickBarnettChamberofShipping RobertAshdownCrownEstate DanielleLane,DavidTudorDepartmentforBusinessInnovation PatriciaJudd,PeterJoyce,&Skills(BIS) Aleshade-Freitas,Ann-ThereseFarmerDepartmentforEnergy&Climate TrevorRaggatt,KatePayne,AlanMorganChange(DECC)DepartmentforFoodandEnvironment SharonWort,AmyHolmes(Defra)DepartmentforTransport(DfT) RobertDavies,ColinMorrisDepartmentforEnterprise,Trade& BarbaraSwannInvestmentNorthernIreland(DETI)EuropeanMarineEnergyCentre(EMEC) NeilKermodeEnvirolinkNorthWest IanSibbickEnvironmentAgency StephenOates,AndrewColeman,

AntoniaScarrE.ONEngineeringLtd MarcoMarijewycz,RalphChamberlain,

AmaanLefeyetteEnergyTechnologyInstitute(ETI) RichardKnightFrazerNashConsultancy DavidMcNaughtHartleyAndersonLtd JohnHartleyHighland&IslandsEnterprise EannSinclairHMTreasury JonParker,NicolasGarciaInstituteofMarineEngineering,Science MorleymorFisher&Technology(IMaREST)InternationalPower JoeHulmITPower JamieO’Nians

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44 MarineEnergyActionPlan2010Executive Summary & Recommendations

MarineCurrentTurbines PeterFraenkelNewandRenewableEnergyCentre AndrewMill,JamieGrimwade,(NaREC) StephenWilsonNaturalEngland AdrianJowitt,RachelBathurst,

VictoriaCopleyNaturalEnvironmentResearchCouncil SashaLeigh(NERC)NWDA LiamFisherOceanElectricPower ChrisBaleOceanlinx NathanFaulksOceanPowerTechnology PaulJordan,StuartBowerOrecon DavidCrispPeelHoldings IainTaylorPelamis MaxCarcasPembrokeshireCoastalForum DavidJones,ToniaForsythPeninsulaResearchInstituteforMarine DeborahGreavesRenewableEnergy(PRiMARE)PulseTidal BobSmith,HowardNimmo,MarcPaishQinetiQ MarkRobertsRedfieldConsulting JohnAldersey-WilliamsRenewableEnergyAssociation(REA) GaynorHartnell,StephanieMerryRenewablesUK(formerlyBWEA) OliverWraggRollsRoyce/TidalGenerationLtd GedHeffernanRPSPlanning&Development JohnStevensonRWEnPower PaulCatterall,BillLangleyScottishandSouthern RobinBurnett,WillSteggals,

JohnThoulessScottishEnterprise MurrayBainbridgeScottishGovernment NealRafferty,AlexReidScottishPower MandyGloyer,AlanMortimerScottishRenewables MornaCannonSiemens EdBrady,MichaelRollsSolwayEnergyGateway BrianDawesSouthWestRDA/WaveHub NickHarrington,JonnyBoston,

ClaireGibsonStrathclydeUniversity AlanRobertsonSubseaUK AlistairBirnieTheCarbonTrust StephenWyattTechnologyStrategyBoard(TSB) FilomenaLaPorta,DerekAllenTidalEnergyLtd MartinMurphyUKMajorPorts RichardBirdUKEnergyResearchCentres(UKERC)/ HenryJefferyUniversityofEdinburghUniversityofEdinburgh StephenSalterWelshAssemblyGovernment RonLoveland,AlunJames,

MichaelCummings,StuartAndersonWildlife&CountrysideLink JoannaButler

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Annex B: Economics of Wave and Tidal Energy

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46 MarineEnergyActionPlan2010Executive Summary & Recommendations

Economics of Wave and Tidal Energy

DECCandtheScottishGovernmenthavecommissionedBlack&VeatchandErnst&Youngtocollectdataonthecurrentgenerationcostsofmarinetechnologiesandtomodelthedevelopmentofthesetechnologiesfromnowto2050.Thereisaverylargeamountofuncertaintysurroundingsuchprojectionswhichgosofaroutintothefuture,andtheresultspresentedhereshouldberegardedasillustrative.

ThegraphsbelowshowthefallsinlevelisedgenerationcostsovertimeasmodelledbyErnst&Young,assumingmid-leveldeploymentandmid-levellearningrateassumptions.Thepercentagesshown–14%,12%,10%,9%,8%–arethediscountrateused,representingtheassumedrequiredratesofreturn(hurdlerates).Thesearepost-taxrealratesofreturn;correspondingpre-taxrequiredratesofreturnwouldbehigher.

WaveEnergyThefallinlevelisedgenerationcostsforwaveenergyisillustratedinFigure1,indicatingareductionincostof£466to£653perMWhforpre-demonstrationprojectsdownto£338to£471perMWhfordemonstrationprojects,allthewaydownto£71to£105perMWhin2050.Theserangesarebasedonlow,mediumandhighinitialcostswhichlearningratesarethenappliedtofromthepointofthefirstcommercialprojects.Theythereforedonotcoveralloftheuncertaintysurroundingfuturecosts,forwhichtheerrorbandswouldbemuchlarger.Inparticular,theydonotreflectthelow/highdeploymentscenariosnorthelow/highlearningrateassumptions.

Figure 1Wave levelised costs through time

Source: Ernst & Young. Note demonstration costs are a weighted average of nearshore and offshore wave data which fall in different years.

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AnnexB:EconomicsofWaveandTidalEnergy 47

TidalStreamTidalstreamshallowcosts,likewave,areestimatedtofallgreatlythroughtimefrom£308to£504perMWhatpre-demonstration,through£144to£213perMWhatdemonstration,eventuallydownto£100to£150perMWhin2050(SeeFigures2and3).Similarlytidalsteamdeepprojectsareestimatedtofallfrom£456to£633perMWhatpre-demonstration,through£210to£301perMWhatdemonstration,eventuallydownto£74to£117perMWhin2050.WithreferencetoFigures2and3itisenvisagedthattheinitialdeploymentlargelytooccurinshallowwaters(<40-50m).Exploitationofdeepertidalstreamsiteswouldonlyfollow-onlater.

Figure 2Tidal stream shallow levelised costs through time

Source: Ernst &Young

Figure 3Tidal stream deep levelised costs through time

Source: Ernst &Young

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48 MarineEnergyActionPlan2010Executive Summary & Recommendations

TidalRangeTidalrangeisassumedtobeamaturetechnology,andhencethelevelisedcostsdonotchangemuchthroughtime(seeFigure4),exceptfortheartificialchangingoftherequiredrateofreturn,whichmaynotfallovertimeforthistechnology.Thelevelisedcostsrangefrom£205to£349perMWhin2020,accordingtothelowandhighcostassumptions.However,anewgenerationoflargelowheadturbinescouldinmanytidalrangelocationsconsiderablyincreasethenumberofeffectiveturbinesabletobeinstalledinastructureandthusdecreasesignificantlytheelectricityproductioncosts,aswellasminimisinglocalenvironmentaleffects.

Figure 4Non-Severn (high-head turbine) tidal range levelised costs through time

Source: Ernst &Young

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Printed in the UK on recycled paper containing a minimum of 75% post consumer waste.Department of Energy and Climate Change. www.decc.gov.uk

First published March 2010. 03/10/NP Crown Copyright. URN 10D/591