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GDAE1064MAR / Published OCT 2012 Marine Power (Ocean, Wave and Tidal) - Installed Capacity, Levelized

Cost of Energy (LCOE), Competitive Landscape and Key Country Analysis to 2020 © GlobalData. This report is a licensed product and is not to be copied,

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Marine Power (Ocean, Wave and Tidal) - Installed Capacity, Levelized Cost of Energy (LCOE), Competitive Landscape and

Key Country Analysis to 2020 Reference Code: GDAE1064MAR Publication Date: October 2012

Global Marine Energy - Huge Unexploited Potential across the World

The global marine energy industry is in a nascent stage of development and is expected to contribute a low share to the world’s energy portfolio during the forecast period. The real potential of marine energy is yet to be realized and installations will increase with technological developments. There are a number of potential sites spread across the globe which are favorable for harnessing marine power. The Electric Power Research Institute estimates the total annual average wave energy off the US’ coastlines, calculated at a depth of XXm, at XX TWh/year. An assessment by the Georgia Tech Research Corporation estimated that the country has around XX Gigawatt (GW) of theoretical tidal stream power generation capacity (Kevin et al., 2011). Canada has enormous marine power resources along its vast coast-line. A preliminary study shows that Canada has about XX GW of marine power in the country’s waters, with British Columbia and Nova Scotia having the highest number of favorable sites to harness marine energy. It is estimated that the UK has a wave energy potential of approximately XX TWh/year and a tidal energy potential of approximately XX TWh/year (DECC, 2011).

Cost of Marine Technologies - Wave Energy Technology Costlier than Tidal Energy Technology

Wave energy and tidal energy technologies are currently the costliest of all renewable power technologies. Among wave energy and tidal energy technologies, wave energy technology is more costly, with a capital cost ranging between $XX/kW (kilowatts) and $XX/kW, than tidal energy technology, with a capital cost ranging between $XX/kW and $XX/kW. However, the capital cost break-up for a wave energy project is similar to a tidal energy project, with the wave structure and mechanical and electrical works adding close to XX% to the capital cost. In terms of Levelized Cost of Energy (LCOE), the LCOE for a wave energy project ranges between $XX/kWh (kilowatt-hours) and $XX/kWh, and the LCOE for tidal energy project ranges between $XX/kWh and $XX/kWh. The following graph depicts the LCOE of wave and tidal energy technologies in the lowest and highest possible cases.

Marine Energy Market, LCOE, Tidal and Wave Energy Technology, $/kWh, 2011

Wave Tidal

$/kW

h

Low High

Source: GlobalData

North America and the UK are the Focal Point of Tidal Energy Deployments

There are currently various tidal energy technologies which are in commercial demonstration stages of development. The UK and the US are most active countries in developing tidal technology and bringing the technology closer to commercialization. The US has approximately XX projects in various stages of development. The US is followed by the UK in terms of the number of projects under development. The UK also has the highest number of projects which are currently being actively demonstrated. The country has huge potential for marine power and is considered the most attractive destination to develop marine projects in Europe.

GDAE1064MAR / Published OCT 2012 Page 3 Marine Power (Ocean, Wave and Tidal) - Installed Capacity, Levelized



1 Table of Contents 1 Table of Contents ............................................................................................................................ 3

1.1 List of Tables............................................................................................................................. 6 1.2 List of Figures............................................................................................................................ 7

2 Introduction ..................................................................................................................................... 8 2.1 Marine Energy Market, Overview ............................................................................................... 8 2.2 Marine Energy Market, Technology Overview............................................................................. 9

2.2.1 Tidal Technologies............................................................................................................ 9 2.2.2 Wave Technology........................................................................................................... 10 2.2.3 Ocean Thermal Energy Conversion................................................................................. 12 2.2.4 Salinity Gradient ............................................................................................................. 12

2.3 Marine Energy Market, Global, Development Requirements of the Marine Technology .............. 13 2.4 GlobalData Report Guidance ................................................................................................... 15

3 Marine Energy Market, Global........................................................................................................ 16 3.1 Marine Energy Market, Global, Overview.................................................................................. 16 3.2 Marine Energy Market, Global, Distribution of Projects.............................................................. 17

3.2.1 Tidal Energy Market, Global, Distribution of Projects........................................................ 17 3.2.2 Wave Energy Market, Global, Distribution of Projects....................................................... 18

3.3 Marine Energy Market, Global, Installed Capacity, MW, 2015-2030........................................... 20 3.3.1 Wave Power Market, Installed Capacity by Country, MW, 2015-2030 ............................... 21 3.3.2 Tidal Power Market, Installed Capacity by Country, MW, 2015-2030 ................................ 22

3.4 Marine Energy Market, Global, Cost Analysis ........................................................................... 23 3.4.1 Tidal Energy Market, Global, Capital Cost Break-up, 2011 ............................................... 23 3.4.2 Wave Energy Market, Global, Capital Cost Break-up, 2011.............................................. 24 3.4.3 Marine Energy Market, Global, Levelized Cost of Energy ................................................. 25

4 Marine Energy Market, the US ....................................................................................................... 27 4.1 Marine Energy Market, the US, Overview................................................................................. 27 4.2 Marine Energy Market, the US, Technology Potential ............................................................... 27 4.3 Marine Energy Market, the US, Power Projects ........................................................................ 30 4.4 Marine Energy Market, the US, Supporting Policies and Programs............................................ 33

4.4.1 Production Tax Credit ..................................................................................................... 33 4.4.2 Water Power Program .................................................................................................... 33

4.5 Marine Energy Market, the US, Supporting Authorities.............................................................. 33 4.5.1 Bureau of Ocean Energy Management (BOEM)............................................................... 33

5 Marine Energy Market, Canada...................................................................................................... 34 5.1 Marine Energy Market, Canada, Overview ............................................................................... 34 5.2 Marine Energy Market, Canada, Technology Potential.............................................................. 34 5.3 Marine Energy Market, Canada, Power Projects....................................................................... 35 5.4 Marine Energy Market, Canada, Supporting Policies and Programs .......................................... 36

5.4.1 Renewable Electricity Plan.............................................................................................. 36 5.4.2 ecoENERGY Innovation Initiative Programme ................................................................. 36 5.4.3 ComFIT Program............................................................................................................ 36

5.5 Marine Energy Market, Canada, Supporting Authorities ............................................................ 36 5.5.1 Fundy Energy Research Network (FERN) ....................................................................... 36 5.5.2 Fundy Ocean Research Centre for Energy (FORCE) ....................................................... 36 5.5.3 Offshore Energy and Environmental Research (OEER).................................................... 36

6 Marine Energy Market, The UK ...................................................................................................... 37 6.1 Marine Energy Market, the UK, Overview................................................................................. 37 6.2 Marine Energy Market, the UK, Technology Potential ............................................................... 37 6.3 Marine Energy Market, the UK, Power Projects ........................................................................ 38 6.4 Marine Energy Market, the UK, Supporting Policies and Programs............................................ 40

6.4.1 Marine Renewables Deployment Fund ............................................................................ 40 6.4.2 Renewable Obligation Order ........................................................................................... 41 6.4.3 The UK Marine Energy Program ..................................................................................... 41 6.4.4 Marine Energy Array Demonstrator ................................................................................. 41 6.4.5 Marine Renewable Commercialization Fund .................................................................... 41

6.5 Marine Energy Market, the UK, Supporting Authorities.............................................................. 41 6.5.1 European Marine Energy Centre ..................................................................................... 41 6.5.2 The Carbon Trust ........................................................................................................... 41

7 Marine Energy Market, Portugal ..................................................................................................... 42




7.1 Marine Energy Market, Portugal, Overview............................................................................... 42 7.2 Marine Energy Market, Portugal, Technology Potential ............................................................. 42 7.3 Marine Energy Market, Portugal, Power Projects ...................................................................... 43 7.4 Marine Energy Market, Portugal, Supporting Policies and Programs ......................................... 43

7.4.1 Wave Energy Pilot Zone ................................................................................................. 43 7.5 Marine Energy Market, Portugal, Supporting Authorities ........................................................... 43

7.5.1 Instituto Superior Tecnico................................................................................................ 43 7.5.2 Wave Energy Centre....................................................................................................... 43 7.5.3 The Foundation for Science and Technology ................................................................... 43

8 Marine Energy Market, Australia .................................................................................................... 44 8.1 Marine Energy Market, Australia, Overview .............................................................................. 44 8.2 Marine Energy Market, Australia, Technology Potential ............................................................ 44 8.3 Marine Energy Market, Australia, Power Projects ..................................................................... 46 8.4 Marine Energy Market, Australia, Supporting Policies and Programs......................................... 47

8.4.1 Renewable Energy Development Program ...................................................................... 47 8.4.2 Low Emissions Energy Development............................................................................... 47

8.5 Marine Energy Market, Australia, Supporting Authorities........................................................... 47 8.5.1 Western Australian Sustainable Energy Association......................................................... 47 8.5.2 The Commonwealth Scientific and Industrial Research Organisation (CSIRO).................. 47 8.5.3 Ocean Energy Industry Australia (OEIA).......................................................................... 47

9 Marine Energy Market, Republic of Korea....................................................................................... 48 9.1 Marine Energy Market, Republic of Korea, Overview ................................................................ 48 9.2 Marine Energy Market, Republic of Korea, Technology Potential............................................... 48 9.3 Marine Energy Market, Republic of Korea, Power Projects........................................................ 51 9.4 Marine Energy Market, Republic of Korea, Supporting Policies and Programs........................... 52

9.4.1 Feed-in Tariff .................................................................................................................. 52 9.5 Marine Energy Market, Republic of Korea, Supporting Authorities ............................................. 52

10 Marine Energy Market, Company Analysis...................................................................................... 53 10.1 Ocean Renewable Power Company......................................................................................... 53

10.1.1 Ocean Renewable Power Company, Company Overview ................................................ 53 10.1.2 Ocean Renewable Power Company, Major Historical Developments................................ 54 10.1.3 Ocean Renewable Power Company, Technology Overview ............................................. 55 10.1.4 Ocean Renewable Power Company, Marine Energy Projects........................................... 55

10.2 Aquamarine Power .................................................................................................................. 57 10.2.1 Aquamarine Power, Company Overview.......................................................................... 57 10.2.2 Aquamarine Power, Major Historical Developments ......................................................... 57 10.2.3 Aquamarine Power, Technology Overview....................................................................... 58 10.2.4 Aquamarine Power, Marine Energy Projects.................................................................... 59

10.3 AWS Ocean Energy ................................................................................................................ 60 10.3.1 AWS Ocean Energy, Company Overview........................................................................ 60 10.3.2 AWS Ocean Energy, Major Historical Developments........................................................ 61 10.3.3 AWS Ocean Energy, Technology Overview..................................................................... 61 10.3.4 AWS Ocean Energy, Marine Energy Projects .................................................................. 62

10.4 Carnegie Wave Energy Limited................................................................................................ 62 10.4.1 Carnegie Wave Energy Limited, Company Overview ....................................................... 62 10.4.2 Carnegie Wave Energy Limited, Major Historical Developments....................................... 62 10.4.3 Carnegie Wave Energy Limited, Technology Overview .................................................... 64 10.4.4 Carnegie Wave Energy Limited, Marine Energy Projects.................................................. 64

10.5 Marine Current Turbines Limited .............................................................................................. 65 10.5.1 Marine Current Turbines Limited, Company Overview...................................................... 65 10.5.2 Marine Current Turbines Limited, Major Historical Developments ..................................... 66 10.5.3 Marine Current Turbines Limited, Technology Overview................................................... 67 10.5.4 Marine Current Turbines Limited, Marine Energy Projects ................................................ 67

10.6 Ocean Power Technologies ..................................................................................................... 68 10.6.1 Ocean Power Technologies, Company Overview............................................................. 68 10.6.2 Ocean Power Technologies, Major Historical Developments ............................................ 69 10.6.3 Ocean Power Technologies, Technology Overview.......................................................... 70 10.6.4 Ocean Power Technologies, Marine Energy Projects ....................................................... 71

10.7 Oceanlinx Limited.................................................................................................................... 73 10.7.1 Oceanlinx Limited, Company Overview ........................................................................... 73 10.7.2 Oceanlinx Limited, Major Historical Developments ........................................................... 73 10.7.3 Oceanlinx Limited, Technology Overview ........................................................................ 74 10.7.4 Oceanlinx Limited, Marine Energy Projects...................................................................... 75

10.8 OpenHydro Group Limited ....................................................................................................... 75




10.8.1 OpenHydro Group Limited, Company Overview............................................................... 75 10.8.2 OpenHydro Group Limited, Major Historical Developments .............................................. 76 10.8.3 OpenHydro Group Limited, Technology Overview............................................................ 76 10.8.4 OpenHydro Group Limited, Marine Energy Projects ......................................................... 77

10.9 Pelamis Wave Power............................................................................................................... 78 10.9.1 Pelamis Wave Power, Company Overview ...................................................................... 78 10.9.2 Pelamis Wave Power, Major Historical Developments...................................................... 79 10.9.3 Pelamis Wave Power, Technology Overview ................................................................... 79 10.9.4 Pelamis Wave Power, Marine Energy Projects ................................................................ 80

10.10 Pulse Tidal ..................................................................................................................... 81 10.10.1 Pulse Tidal, Company Overview...................................................................................... 81 10.10.2 Pulse Tidal, Major Historical Developments ..................................................................... 82 10.10.3 Pulse Tidal, Technology Overview................................................................................... 82 10.10.4 Pulse Tidal, Marine Energy Projects ................................................................................ 83

10.11 Verdant Power................................................................................................................ 83 10.11.1 Verdant Power, Company Overview................................................................................ 83 10.11.2 Verdant Power, Major Historical Developments................................................................ 84 10.11.3 Verdant Power, Technology Overview............................................................................. 84 10.11.4 Verdant Power, Marine Energy Projects .......................................................................... 85

10.12 Voith Hydro Wavegen Limited ......................................................................................... 85 10.12.1 Voith Hydro Wavegen Limited, Company Overview ......................................................... 85 10.12.2 Voith Hydro Wavegen Limited, Major Historical Developments ......................................... 86 10.12.3 Voith Hydro Wavegen Limited, Technology Overview ...................................................... 86 10.12.4 Voith Hydro Wavegen Limited, Marine Energy Projects.................................................... 87

10.13 BioPower Systems Pty.................................................................................................... 87 10.13.1 BioPower Systems Pty, Company Overview .................................................................... 87 10.13.2 BioPower Systems Pty, Major Historical Developments.................................................... 88 10.13.3 BioPower Systems Pty, Technology Overview................................................................. 89 10.13.4 BioPower Systems Pty, Marine Energy Projects .............................................................. 89

10.14 Tidal Generation Limited ................................................................................................. 90 10.14.1 Tidal Generation Limited, Company Overview ................................................................. 90 10.14.2 Tidal Generation Limited, Major Historical Developments................................................. 91 10.14.3 Tidal Generation Limited, Technology Overview .............................................................. 91 10.14.4 Tidal Generation Limited, Projects................................................................................... 92

10.15 Wavebob........................................................................................................................ 92 10.15.1 Wavebob, Company Overview ........................................................................................ 92 10.15.2 Wavebob, Major Historical Developments........................................................................ 93 10.15.3 Wavebob, Technology Overview ..................................................................................... 93 10.15.4 Wavebob, Marine Energy Projects .................................................................................. 93

11 Appendix....................................................................................................................................... 94 11.1 Marine Energy Market, Technology Definition........................................................................... 94

11.1.1 Tides and Tidal Barrage Power ....................................................................................... 94 11.1.2 Wave Energy.................................................................................................................. 94 11.1.3 Marine Current ............................................................................................................... 94 11.1.4 Salinity Gradient ............................................................................................................. 94 11.1.5 Thermal Gradient............................................................................................................ 94

11.2 Abbreviations .......................................................................................................................... 95 11.3 Bibliography ............................................................................................................................ 96 11.4 Methodology ........................................................................................................................... 96

11.4.1 Secondary Research ...................................................................................................... 96 11.4.2 Primary Research........................................................................................................... 97

11.5 Contact Us .............................................................................................................................. 97 11.6 Disclaimer ............................................................................................................................... 97




1.1 List of Tables Table 1: Comparison of Ocean Energy with Solar, Wind, Biomass, Natural Gas and Coal Energy

Sources................................................................................................................................ 8 Table 2: Tidal Energy Market, Global, Major Companies and their Technologies .................................. 9 Table 3: Wave Energy Market, Global, Major Companies and their Technologies............................... 11 Table 4: Tidal Energy Market, Global, Distribution of Projects July 2012 ............................................ 17 Table 5: Wave Energy Market, Global, Distribution of Projects, July 2012 .......................................... 19 Table 6: Marine Energy Market, Global, Cumulative Installed Capacity, MW, 2015-2030 .................... 20 Table 7: Wave Power Market, Global, Installed Capacity, MW, 2015-2030......................................... 21 Table 8: Tidal Power Market, Global, Installed Capacity, MW, 2015-2030 .......................................... 22 Table 9: Tidal Energy Market, Global, Break-up of Capital Cost, 2011................................................ 23 Table 10: Wave Energy Market, Global, Cost Analysis, Break-up of Capital Cost, 2011........................ 24 Table 11: Marine Energy Market, Global, LCOE Comparison of Tidal and Wave Energy, $/kWh, 2011 . 25 Table 12: Tidal and Wave Energy Market, Global, LCOE Comparison with Other Renewable Sources,

$/kWh, 2011 ....................................................................................................................... 26 Table 13: Wave Power Market, The US, Technology Potential, %, 2011.............................................. 28 Table 14: Tidal Power Market, The US, Technology Potential, MW, 2011 ............................................ 29 Table 15: Marine Energy Market, the US, Major Tidal and Wave Power Projects.................................. 30 Table 16: Tidal and Wave Energy Market, Canada, Technology Potential (MW)................................... 35 Table 17: Marine Energy Market, Canada, Major Tidal and Wave Power Projects ................................ 35 Table 18: Tidal and Wave Energy, the UK, Technology Potential, TWh/Year........................................ 37 Table 19: Marine Energy Market, the UK, Major Tidal and Wave Power Projects.................................. 38 Table 20: Tidal and Wave Energy, Market, Portugal, Technology Potential, TWh/Year ......................... 42 Table 21: Marine Energy Market, Portugal, Major Marine Power Projects ............................................ 43 Table 22: Tidal Energy Market, Australia, Kinetic Energy Potential of Tides along the Coast................. 45 Table 23: Wave Energy Market, Australia, Kinetic Energy Potential of Waves along the Coast (GWh) .. 45 Table 24: Marine Energy Market, Australia, Major Tidal and Wave Power Projects............................... 46 Table 25: Tidal Energy Market, Republic of Korea, Technology Potential in Tidal Range, MW .............. 49 Table 26: Tidal Energy Market, Republic of Korea, Technology Potential of Tidal Stream, MW ............. 49 Table 27: Wave Energy Market, Republic of Korea, Technology Potential by Location Type, MW......... 50 Table 28: Marine Energy Market, Republic of Korea, Major Tidal and Wave Power Projects................. 51 Table 29: Ocean Renewable Power Company, Company Overview .................................................... 53 Table 30: Ocean Renewable Power Company, Marine Energy Projects............................................... 56 Table 31: Aquamarine Power, Company Overview.............................................................................. 57 Table 32: Aquamarine Power, Marine Energy Projects ........................................................................ 59 Table 33: AWS Ocean Energy, Company Overview ............................................................................ 60 Table 34: Marine Energy Market, AWS Ocean Energy, Marine Energy Projects ................................... 62 Table 35: Carnegie Wave Energy Limited, Company Overview ........................................................... 62 Table 36: Carnegie Wave Energy Limited, Marine Energy Projects...................................................... 65 Table 37: Marine Current Turbines Limited, Company Overview.......................................................... 65 Table 38: Marine Current Turbines Limited, Marine Energy Projects .................................................... 68 Table 39: Ocean Power Technologies, Company Overview................................................................. 69 Table 40: Ocean Power Technologies, Marine Energy Projects ........................................................... 72 Table 41: Oceanlinx Limited, Company Overview................................................................................ 73 Table 42: Oceanlinx Limited, Marine Energy Projects.......................................................................... 75 Table 43: OpenHydro Group Limited, Company Overview................................................................... 75 Table 44: OpenHydro Group Limited, Marine Energy Projects ............................................................. 77 Table 45: Pelamis Wave Power, Company Overview .......................................................................... 78 Table 46: Pelamis Wave Power, Marine Energy Projects..................................................................... 80 Table 47: Pulse Tidal, Company Overview.......................................................................................... 81 Table 48: Pulse Tidal, Marine Energy Projects .................................................................................... 83 Table 49: Verdant Power, Company Overview .................................................................................... 83 Table 50: Marine Energy Market, Verdant Power, Marine Energy Projects ........................................... 85 Table 51: Voith Hydro Wavegen Limited, Company Overview.............................................................. 85 Table 52: Voith Hydro Wavegen Limited, Marine Energy Projects........................................................ 87 Table 53: BioPower Systems Pty, Company Overview ........................................................................ 87 Table 54: BioPower Systems Pty, Marine Energy Projects .................................................................. 89 Table 55: Tidal Generation Limited, Company Overview...................................................................... 90 Table 56: Tidal Generation Limited, Marine Energy Projects................................................................ 92 Table 57: Wavebob, Company Overview ............................................................................................ 92 Table 58: Abbreviations...................................................................................................................... 95




1.2 List of Figures Figure 1: Global Marine Energy, Global, Development Requirements, 2011........................................ 13 Figure 2: Tidal Energy Market, Global, Distribution of Projects July 2012 ............................................ 17 Figure 3: Wave Energy Market, Global, Distribution of Projects, July 2012 .......................................... 18 Figure 4: Marine Energy Market, Global, Cumulative Installed Capacity, MW, 2015-2030 .................... 20 Figure 5: Wave Power Market, Global, Installed Capacity, MW, 2015-2030......................................... 21 Figure 6: Tidal Power Market, Global, Installed Capacity, MW, 2015-2030 .......................................... 22 Figure 7: Tidal Energy Market, Global, Break-up of Capital Cost, 2011................................................ 23 Figure 8: Wave Energy Market, Global, Cost Analysis, Break-up of Capital Cost, 2011........................ 24 Figure 9: Marine Energy Market, Global, LCOE Comparison of Tidal and Wave Energy, $/kWh, 2011 . 25 Figure 10: Tidal and Wave Energy Market, Global, LCOE Comparison with Other Renewable Sources,

$/kWh, 2011 ....................................................................................................................... 26 Figure 11: Wave Power Market, The US, Technology Potential, %, 2011.............................................. 27 Figure 12: Tidal Power Market, the US, Technology Potential, MW, 2011.............................................. 28 Figure 13: Tidal and Wave Energy Market, Canada, Technology Potential (MW)................................... 34 Figure 14: Tidal and Wave Energy, the UK, Technology Potential, TWh/Year........................................ 37 Figure 15: Tidal and Wave Energy, Market, Portugal, Technology Potential, TWh/Year ......................... 42 Figure 16: Tidal Energy Market, Australia, Kinetic Energy Potential of Tides along the Coast (GWh)...... 44 Figure 17: Wave Energy Market, Australia, Kinetic Energy Potential of Waves along the Coast (GWh) .. 45 Figure 18: Tidal Energy Market, Republic of Korea, Technology Potential in Tidal Range, MW .............. 48 Figure 19: Tidal Energy Market, Republic of Korea, Technology Potential of Tidal Stream, MW ............. 49 Figure 20: Wave Energy Market, Republic of Korea, Technology Potential by Location Type, MW......... 50 Figure 21: Ocean Renewable Power Company, Historical Development ............................................... 54 Figure 22: Aquamarine Power, Historical Development ........................................................................ 58 Figure 23: AWS Ocean Energy, Historical Development....................................................................... 61 Figure 24: Carnegie Wave Energy Limited, Historical Development ...................................................... 63 Figure 25: Marine Current Turbines Limited, Historical Development .................................................... 66 Figure 26: Ocean Power Technologies, Historical Development ........................................................... 70 Figure 27: Oceanlinx Limited, Historical Development .......................................................................... 74 Figure 28: OpenHydro Group Limited, Historical Development.............................................................. 76 Figure 29: Pelamis Wave Power, Historical Development..................................................................... 79 Figure 30: Pulse Tidal, Historical Development .................................................................................... 82 Figure 31: Verdant Power, Historical Development............................................................................... 84 Figure 32: Voith Hydro Wavegen Limited, Historical Development ........................................................ 86 Figure 33: BioPower Systems Pty, Historical Development................................................................... 88 Figure 34: Tidal Generation Limited, Historical Development ................................................................ 91 Figure 35: Wavebob, Historical Development....................................................................................... 93




2 Introduction

2.1 Marine Energy Market, Overview Governments are trying to combat climate change and their increasing dependence on fossil fuels by developing comprehensive and ambitious strategies for the development of renewable energy sources. Developing the ocean energy sector could significantly reduce greenhouse gas emissions and pollution, create direct and indirect employment and lead to the economic development of coastal areas.

Ocean energy is a source which doesn’t depend on the uncertainties associated with the fossil fuels (availability and volatility). Therefore ocean energy is an important source of energy. The ocean energy industry is in a nascent stage and can only provide small contributions to the global energy portfolio. The real potential of the ocean energy is yet to be realized and will take time to develop.

Ocean energy sources are primarily classified into five different types: Tides, waves, marine current, salinity gradient and thermal gradient.

The figure below shows the comparison of ocean energy with other renewable and non-renewable energy sources.

Table 1: Comparison of Ocean Energy with Solar, Wind, Biomass, Natural Gas and Coal Energy Sources

Ocean Solar Wind Biomass Natural Gas and Coal

Energy Density

Predictability

Load Factor

Visual Impact

Potential Sites

Source: GlobalData




2.4 GlobalData Report Guidance The report begins with an executive summary which provides a snapshot of the global marine energy

market.

The ‘Introduction’ chapter gives a definition of wave energy and tidal energy technologies, along with a detailed description of each of the wave energy and tidal energy technologies.

Chapter three provides a global marine market outlook. This section contains a sub-section on the distribution of wave energy and tidal energy projects in various countries, and the stages of development of these projects.

The global section also contains a cost analysis section which provides information on capital cost break-up of different types of marine technology. The global section ends with a sub-section on the Levelized Cost of Energy (LCOE) of tidal energy and wave energy. The section also compares the LCOE of marine technologies with other renewables.

Chapters four-nine focus on individual countries, and provide detailed outlooks for the marine energy industry in each market. The US, Canada, the UK, Portugal, Australia and Republic of Korea are the countries covered.

Each of the chapters for individual countries contains a national overview, the potential of marine technology there, information on marine energy projects currently under development, and details of the policies and programs supporting marine technology and the authorities supporting the development of marine technology.

Chapter 10 focuses on companies which are developing marine energy technology. This section contains sub-sections on 15 companies developing marine energy technology.

Each of the sub-sections contains an overview for the company, the marine technology of the company and the projects being developed by the company.




3.4.2 Wave Energy Market, Global, Capital Cost Break-up, 2011 Wave energy projects are more expensive than tidal projects. The capital cost can range between $XX/kW to $XX/kW. With improved technology, the cost of wave energy projects is expected to decrease drastically in the future. The capital cost break-up for a wave energy project is similar to a tidal energy project, with the wave structure and mechanical and electrical works adding close to XX% of the capital cost of a project. Project installation, mooring and grid connections take XX%, XX% and XX% respectively of the capital cost of a wave energy project. The following pie chart illustrates the break-up of capital cost for a wave energy project.

Figure 8: Wave Energy Market, Global, Cost Analysis, Break-up of Capital Cost, 2011

Mechanical and Electrical

Structure

Mooring

Project Management

Grid Connection

Installation

Source: GlobalData; Future Marine Energy, 2011; Primary Research with Technology Companies

Table 10: Wave Energy Market, Global, Cost Analysis, Break-up of Capital Cost, 2011 Cost Component Share (%)

Mechanical and Electrical

Structure

Installation

Mooring

Grid Connection

Project Management

Source: GlobalData; Future Marine Energy, 2011; Primary Research with Technology Companies




7 Marine Energy Market, Portugal

7.1 Marine Energy Market, Portugal, Overview Since 1986, Portugal has been involved in the planning and development of shoreline water oscillating column devices on the island of Pico in the Azores, and it entered this into service in 1999. The government also provides enhanced prices for electricity delivered from marine energy to the grid. The country has set itself a target of XX MW of marine installed capacity by 2020.

A non-profit association called Wave Energy Centre (WaveEC) was created in 2003 which aims to promote co-operation between companies, research organizations, finance institutions and other entities for the advancement of the wave energy industry. Kymaner is another small enterprise which focuses on the demonstration of the validity of oscillating water column approaches for exploiting wave energy.

7.2 Marine Energy Market, Portugal, Technology Potential Portugal has a favorable wave power flux of XX-XXkW/m and the estimated overall resource is about XX GW. The country has the potential to produce around XX TWh per year from wave energy, and around XX TWh a year from tidal energy.

Figure 15: Tidal and Wave Energy, Market, Portugal, Technology Potential, TWh/Year

Wave Tidal

TWh/

year

Source: GlobalData; Primary Research with Industry Experts

Table 20: Tidal and Wave Energy, Market, Portugal, Technology Potential, TWh/Year

Marine Technology Potential (TWh/year)

Wave Power

Tidal Power

Source: GlobalData; Primary Research with Industry Experts




11 Appendix

11.1 Marine Energy Market, Technology Definition 11.1.1 Tides and Tidal Barrage Power This is similar to conventional hydroelectric power which involves building a dam across an estuary and uses turbines to convert potential energy into electricity. These plants can be built at locations with a tidal range greater than five meters. These plants can cause significant changes to the ecosystem of estuaries, which is why the number of them being built is limited.

11.1.2 Wave Energy Waves are generated by the wind that blows over the surface of the ocean. The amount of energy that is transported per meter width of the wave is dependent on the wave height and wave period. The areas that are favorable for harnessing wave power are around the 30° latitude region and the energy is greatest in the winter months. Offshore wave power is greater than near-shore wave power due to energy losses from factors such as seabed friction and wave breakings.

11.1.3 Marine Current Marine current power is a form of power based on harnessing the kinetic energy of marine currents. It includes both tidal power and energy derived from ocean currents. Although not widely used at present, marine current power has important potential in the future of electricity generation.

11.1.4 Salinity Gradient An osmotic pressure difference is produced when fresh water flows into the ocean. The process relies on osmosis and ion-specific membranes. By developing appropriate technologies for conversion, the energy resulting from this can be harnessed. The technology is still in the early stages of development. A few companies in Norway and the US are working on developing these technologies.

11.1.5 Thermal Gradient Thermal gradient power, also known as ocean thermal energy conversion, uses the temperature difference between deep and shallow water to generate power. The greater the temperature difference, the greater the power produced. This temperature difference usually increases with decreasing latitude. The main challenge for this technology is to generate significant amounts of power efficiently from small temperature gradients.




11.2 Abbreviations Table 58: Abbreviations Acronym Expanded Form

BOEM Bureau of Ocean Energy Management

CECEP China Energy Conservation Environment Protection Group

COMFIT Community based feed-in tariff

CORE Cornwall Ontario River Energy

CSIRO Commonwealth Scientific and Industrial Research Organisation

DOE Department of Energy

EMEC European Marine Energy Centre

EPRI Electric Power Research Institute

FERC Federal Energy Regulatory Commission

FERN Fundy Energy Research Network

FORCE Fundy Ocean Research Centre for Energy

GW Gigawatt

GWh Gigawatt hour

kW kilowatt

kWh kilowatt-hour

LCOE Levelized Cost of Energy

LEED Low Emissions Energy Development

MEAD Marine Energy Array Demonstrator

MMS Mineral Management Service

MoU Memorandum of Understanding

MRCF Marine Renewable Commercialization Fund

MRDF Marine Renewables Deployment Fund

MW Megawatt

MWh Megawatt-hour

NAVFAC Naval Facilities Command

OCTT Open-Centre Turbine Technology

OEER Offshore Energy and Environmental Research

OEIA Ocean Energy Industry Australia

OTEC Ocean Thermal Energy Conversion

PLC Programmable Logic Control

PTC Production Tax Credit

PWh Petawatt-hour

REDP Renewable Energy Development Program

REED Renewable Energy and Economic Development

RET Renewable Energy Target

RITE Roosevelt Island Tidal Energy

ROC Renewable Obligation Certificates

SCADA Supervisory Control and Data Acquisition

SDTC Sustainable Development Technology Canada

TGU Turbine Generator Unit

TW Terawatt

TWh Terawatt-hour




US DOE US Department of Energy

WCWCP West Coast Wave Collaboration Program

Source: GlobalData

11.3 Bibliography Future Marine Energy (2011). Ocean Energy Systems Annual Report 2011. Available from:

http://www.ocean-energy-systems.org/library/annual_reports. [Accessed in June 2012]

Australian Bureau of Agricultural and Resource Economics (2010). Australian Energy Resource Assessment. Available from: http://adl.brs.gov.au/data/warehouse/pe_aera_d9aae_002/aeraCh_11.pdf.

Department of Energy and Climate Change (2011). Marine Energy Action Plan 2010. Available from: http://www.decc.gov.uk/assets/decc/what%20we%20do/uk%20energy%20supply/energy%20mix/renewable%20energy/explained/wave_tidal/1_20100317102353_e_@@_marineactionplan.pdf.

Federal Energy Regulatory Commission (2012). Marine & Hydrokinetic Projects. US Department Of Energy. Available from:http://www.ferc.gov/industries/hydropower/gen-info/licensing/hydrokinetics/hydrokinetics-projects.pdf

Hong K et al. (2010). Current Status and Future Perspectives of Marin Renewable Energy Development in Korea. Maritime and Ocean Engineering Research Institute. Available from: http://www.pices.int/publications/presentations/pices-2010/2010-s14/s14-0955-hong.pdf.

Jacobson P (2011). Mapping and Assessment of the United States Ocean Energy Wave Centre. Electric Power Research Institute. Available from: http://www1.eere.energy.gov/water/pdfs/mappingandassessment.pdf. [Accessed in June 2012]

Kevin et al. (2011). Assessment of Energy Production Potential from Tidal Streams in the US. Georgia Tech Research Corporation. Available from: http://www1.eere.energy.gov/water/pdfs/1023527.pdf.

Nova Scotia Department of Energy (2011). Charting the Course of Canada’s Marine Renewable Energy Technology Roadmap. Available from: www.gnb.ca/0113/publications/AtlCaTranStrat08-18-e.pdf.

11.4 Methodology GlobalData dedicated research and analysis teams consists of experienced professionals in marketing, market research, consulting background in the energy industry and advanced statistical expertise.

GlobalData adheres to the Codes of Practice of the Market Research Society (www.mrs.org.uk) and the Strategic and Competitive Intelligence Professionals (www.scip.org).

All GlobalData databases are continuously updated and revised. The following research methodology is followed for all databases and reports.

11.4.1 Secondary Research The research process begins with exhaustive secondary research on internal and external sources being carried out to source qualitative and quantitative information relating to marine market.

The secondary research sources that are typically referred to include, but are not limited to:

Company websites: whitepapers, press releases, news and financial reports

Industry trade journals, magazines and other literature including news articles and research studies

National government documents, industry associations, research studies and energy agencies’ statistical databases




11.4.2 Primary Research GlobalData conducts extensive primary interviews with industry participants and commentators in order to validate the information. Primary research involves e-mail interactions and telephone interviews with research institutions, energy agencies and industry associations.

11.6 Disclaimer All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, GlobalData.

marine power (ocean, wave and tidal) - installed capacity ... · gdae1064mar / published oct 2012...

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