Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Marine Energy Action Plan 2010Executive Summary & Recommendations
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
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
Executive Summary
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.
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
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
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
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
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.
12 MarineEnergyActionPlan2010Executive Summary & Recommendations
1. Introduction
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.
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
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/
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
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
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.
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
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
22 MarineEnergyActionPlan2010Executive Summary & Recommendations
2. Summary of Recommendations
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
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
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
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
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
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
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
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.
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
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).
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
2.SummaryofRecommendations 35
theneedsofthetidalrangesectorarecomprehensivelyreflectedwithintheirresearchpriorities.
• thatthePortsStudyforOffshoreWind(2009)beingundertakenbyDECCandanycontinuingworkontherequirementsforoffshorewindaspartofthisstudywouldalsoconsidermarineenergy,toenablethesharingofinfrastructurewhenmarineprojectsareatastagetofullycommercialise.
• thatGovernment,DevolvedAdministrationsandallrelevantstakeholdersinthesectorcapitaliseonopportunitiesformarinetolearnfromandbuildonsynergiesrelatedtotheskillsandsupplychainforoffshorewind.
• Government,developers,otherstakeholdersandothersector/environmentalgroups(e.g.NOREL)activelyengageintheexistingmarine,renewableenergyandenvironmentalforatoidentifycriticalengagementopportunitiesandensurethatthespecificneeds/plansofthemarineindustryarereflectedintheiractivities/discussions.
• Governmentexplorewiththerelevantstakeholdershowtocreateandmaintainasector-widesharingofenvironmentaldataandinformation.
36 MarineEnergyActionPlan2010Executive Summary & Recommendations
3. Next steps & Further Work
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
3.Nextsteps&FurtherWork 39
ThefirstreviewwillbepublishedbyDECCinSpring2011andonanannualbasisthereafter.
Other ad hoc and ongoing tasks:OthertaskswillbeaddedinresponsetoneedarisinginthecourseofworkontheActionPlanandeventsaffectingthedevelopmentofthesector.
40 MarineEnergyActionPlan2010Executive Summary & Recommendations
Annex A: Members of the Marine Energy Action Plan
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
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
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
Annex B: Economics of Wave and Tidal Energy
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.
551MW
h/£
700
600
500
400
300
200
100
0
403
214118 86
Pre-demonstration
14%
Demonstration12%
202010%
20359%
20508%
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
452
MW
h/£
600
500
400
300
200
100
0
179 173 150 124
Pre-demonstration
14%
Demonstration12%
202010%
20359%
20508%
539MW
h/£
700
600
500
400
300
200
100
0
247 203115 92
Pre-demonstration
14%
Demonstration12%
202010%
20359%
20508%
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
279
MW
h/£
400
350
300
250
200
150
100
50
0
258229
202010%
20359%
20508%
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