Introduction         Background         Current Developments         Current Status

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Current Status of Wave Energy

The assessment of the commercial prospects for wave energy is difficult, because estimates of the cost of power from wave energy devices represent a snapshot of the status and costs of evolving designs at their current stages of their development. The electricity costs of a number of devices have been evaluated over the past 10 years using a peer-reviewed methodology (Ref. 1,2). A plot of the resulting costs against the year in which the design of device was completed (see figure below) shows a significant reduction in generating costs. At best, this is similar to improvement of generating costs for wind turbines in the UK (Ref. 3), so that there are now several wave energy devices with predicted costs of about 5 p/kWh or less at 8% discount rate if the devices achieve their anticipated performance.

 

Fig. Reduction in predicted generating costs with time and comparison with costs for wind energy

 

There are well advanced plans to increase the wave energy capacity in the rest of the world to over 15 MW in the next few years. Further predictions for future world-wide capacity are, at present, speculative but several companies have plans for the deployment of several MWs per year in the period 2002-2005, with increasing deployment thereafter. An independent assessment of the likely markets has been made (Ref. 2), taking into account competing sources of electricity. This indicated that, if the wave energy devices performed as predicted, then their economic contribution would be over 2000 TWh/year by the year 2025. This is comparable to the amount of electricity currently produced world-wide by large scale hydroelectric schemes and would correspond to a capital investment of over £ 500 billion.

 

The UK example

The recent improvements in the technical feasibility and economic prospects for wave energy have led to a change in the way the technology is viewed within the UK.

• A report (Ref. 4) from the UK Marine Technology Foresight Panel was supportive of the development of wave energy in the UK. This panel was composed of experts from a variety of industries connected with marine activities (especially the offshore oil and gas industry) and consulted widely before reaching its conclusions.
• A Scottish Commission has been formed to promote the development of a wave energy industry in Scotland. This comprises representatives from the Scottish Parliament, NGOs, relevant industries, finance, etc.
• A report (Ref. 5) by the Royal Commission on Environmental Pollution recommended that stronger support be given to wave power, which the Commission considered to have "significant promise".
• The inclusion of wave energy for the first time in one of the main mechanisms previously used in the UK to promote the deployment of renewable energy technologies: the Scottish Renewables Order which pays a premium price for electricity. This has resulted in three devices being successful in their application.
• The reopening of the UK wave energy programme.

This UK wave energy programme is funded by the UK Department of Trade and Industry (DTI) and concentrates on those technologies which have significant industrial support. Universities developing concepts at the early research stage can seek funding from the UK Engineering and Physical Science Research Council.

To date, the DTI Programme has funded work with several contractors under two calls for proposals. One project which is already completed is a study with a major engineering company on the R&D requirements of wave energy. This study has issued an interim report (Ref. 6) and consulted widely with industry on its findings. The interim report contains the following conclusions:

• No major technological barriers to the development of Wave Energy Prototypes have been identified. All the issues raised under design, construction, deployment and operation can be addressed by transfer of technology from other industries, especially the offshore industry.
• However, some technology gaps have been identified, notably in the areas of mooring and cable connections detailing, hydraulic machines and grid connection and energy storage.
• The Wave Energy Industry is poorly co-coordinated. Teams tend to be relatively small working out of University Departments or SMEs with some industrial backing.
• There remains a lack of investor confidence and hence industrial support for the industry.

Clearly, it is now up to the wave energy industry to co-ordinate itself more effectively and to address those issues that undermine investor support.

 

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Ref. 1: T W Thorpe, 'A review of wave energy', Report ETSU-R-72 for the DTI, AEA Technology, 1992.
Ref. 2: T W Thorpe, 'A brief review of wave energy', Report ETSU-R-120 for the DTI, AEA Technology, 1999.
Ref. 3: Department of Trade and Industry, 'New & Renewable Energy Prospects for the 21st Century', 1999
Ref. 4: Office of Science and Technology, 'Energies from the sea - towards 2020. A Marine Foresight Panel report' DTI, 1999.
Ref. 5: Royal Commission on Environmental Pollution, 'Energy - the changing climate", 2000.
Ref. 6: Ove Arup, 'Wave energy: technology transfer and R & D Recommendations', draft report to the DTI, 2000.