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Scaling Up to Reduce Costs: The Way Forward for Tidal Turbines? Peter Fraenkel Fraenkel-Wright Ltd

Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

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Page 1: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

Scaling Up to

Reduce Costs:

The Way Forward for

Tidal Turbines?

Peter Fraenkel

Fraenkel-Wright Ltd

Page 2: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

Typical unit-cost breakdown (£/kW):

different sizes of single rotor turbines note: rated velocity 2.5m/s

Page 3: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

Economies of Scale:

fixed and variable overhead costs

Power (MW)

capital

cost

£millions

0

2

4

6

8

10

12

14

16

1 1.5 2 2.5 3 3.5 4 4.5 5

Fixed o/h £M variable costs £M

Page 4: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

Economies of Scale:

fixed and variable overhead costs

Power

(MW)

cost-effectiveness

£millions/MW

installed

0

1

2

3

4

5

6

1 1.5 2 2.5 3 3.5 4 4.5 5

Cost-effectiveness (£M/MW) fixed o/h (£M/MW)

Economies of Scale:

fixed and variable overhead costs

Page 5: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

What are fixed overhead costs? Any and all marine renewable energy projects have similar fixed overhead

costs, i.e., costs that are independent of scale and power of the systems.

The additional variable costs will be proportional to power. Most budget

heads contain a varying mixture of fixed and variable costs. E.g.:-

System

size

Fixed

costs

Variable

costs

Total cost Unit cost

£k/MW

Financial &

consents

1MW

4MW

£360,000

£360,000

£20,000

£50,000

£380,000

£410,000

380

102

Infrastructure &

installation

1MW

4MW

£1,200,000

£1,200,000

£330,000

£800,000

£1,530,000

£2,000,000

1,530

500

Machine costs 1MW

4MW

£450,000

£450,000

£2,350,000

£7,200,000

£2,800,000

£7,650,000

2,800

1,912

Total 1MW

4MW

£2,010,000

£2,010,000

£2,700,000

£8,050,000

£4,710,000

£10,060,000

4,710

2,515

Page 6: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

DECC levelised cost estimates for CfD:

different electricity generation technologies Projects commissioning in

2014 (£/MWh)

Projects commissioning in

2020 (£/MWh)

Offshore wind Round 2

CfD strike price

131-168

155

105-135

<135

Offshore wind Round 3

CfD strike price

144-189

155

115-152

<135

Large scale solar PV

CfD strike price

114-131

120

83-94

<100

CCGT (gas) 73-76 79-83

Nuclear new build n.a. 79-102

Tidal Stream 305 (for 1st 30MW) 105

Page 7: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

7

wind - the big one over 3GW operational offshore

(approx 300GW onshore)

75GW planned offshore by 2020

28% p.a. growth last 5 years

Page 8: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

Wind turbine development

1980-2005

double the energy per MW installed

and at the same time halve the costs

....economies of scale

2010

7500kW

130m

100m

20,000,000kWh

1980 - 2010

Page 9: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

16m dia

640kW

430kNm

24m dia

1440kW

1450kNm

Increasing Rotor Size to get more Energy torque & thrust increase faster than energy capture

Rotor Diameter (m)

Example:

f or 16m to 24m increase:-

• 50% increase in rotor diameter

• 125% more power (and energy)

• 237% more torque (and thrust)

Page 10: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

Experience ... the word we use to

describe our mistakes

river current

turbine on the Nile

1978 - 1982

world’s first tidal

turbine, Loch

Linnhe - 1994-5

5 kW

20 kW

300 kW

1200 kW

MCT Seaflow,

Lynmouth,

2003-2009

MCT SeaGen,

Strangford

Narrows

2008- ?

Page 11: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

SuperTideGen (TM) : 4MW @ 2.4m/s 2018? Fraenkel-Wright Ltd

4000 kW

Page 12: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

Super-TideGen: four rotors

4MW at only 2.4m/s – true economies of scale

4 rotors – 762 sq.m. – twice the power of any known competitor

Rotors near surface – 20% more energy than for submerged system

Rapid and low cost installation and retrieval

Rotors can be raised above the surface in a few minutes

Page 13: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

Super-TideGen: two rotors raised for maintenance

Page 14: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

SuperTidegen 4MW @ 2.4m/s – cost projection Key ref

Description No. off

Dimensions (m) Unit Mass (est)

(tonne)

Total mass (tonne)

Cost (£ 000s)

1 Catamaran hull 2 6 x 6 x 80 300 600 £1,500,000

2 Superstructure 1 50 x 30 x 5 340 342 £855,400

3 Powertrain wings 4 15 x 6 x 0.5 30 120 £360,000

4 Power trains 4 10 x 4 x 4 (20m rotor) 100 400 £4,000,000

5 Mooring and pile 2 10 x 2 + 200m cable 200 400 £800,000

6 systems (hydraulic/electronic) £100,000

totals 1862 £7,615,400

£/ MW £1,903,850

Installation will be ~£2Million giving an installed cost of ~£10million

i.e. Installed cost circa £2.5million per MW

Page 15: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

15

tidal turbine revenue earning capacity importance of rotor swept area

Present day systems Annual Energy with 45% LF *

1 x 18m rotor (254m2) 0.86 MW GWh/yr

1 x 20m rotor (314m2) 1.06 MW GWh/yr

2 x 18m rotors (508m2) 1.72 MW GWh/yr

2 x 20m rotors (628m2) 2.12 MW GWh/yr

Super Tide-Gen

(Fraenkel-Wright design)

Annual Energy with 45% LF *

4 x 16m rotors (804m2) 2.72 MW GWh/yr

4 x 20m rotors (762m2) 4.24 MW GWh/yr

4 x 22m rotors (942m2) 5.14 MW GWh/yr

** assumes 42% system efficiency and 95% availability

in 2 yrs

in 3 yrs

in 4 yrs

now

in 1 yr

in 1 yr

in 1 yr

future

3.2

4.0

6.4

7.9

10.2

15.9

19.2

Page 16: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

£0.00

£50.00

£100.00

£150.00

£200.00

£250.00

£300.00

£350.00

£400.00

£450.00

£500.00

0 1 2 3 4 5 6 7

£/MWh

Tidal Cost of Generation v Rated Power Assuming 10%discount rate, 15 year life and 40% Capacity Factor

Rated Power at 2.5m/s MW

DECC strike price

tidal stream 1st 30MW @ £305

probable DECC strike price

for offshore wind £135/MWh

Page 17: Scaling Up to Reduce Costs - EIP Water up to reduce costs... · Scaling Up to Reduce Costs: ... Total cost Unit cost £k/MW Financial & consents 1MW ... 2 x 18m rotors (508m2) 1.72

SuperTideGen: tidal stream energy comes of age

[email protected]

Fraenkel-Wright Ltd

Economies of scale: 4MW @ 2.4m/s at potential cost of <£M 2.5/MW