THE ROLE OF MARINE ENERGY IN MEETING IRELAND’S RENEWABLE ENERGY TARGETSGARTH BRYANS, SENIOR RESOURCE ANALYST, AQUAMARINE POWER

IN BRIEFWHY MARINE ENERGY?

> Vast global resource - wave power alone could > Vast global resource - wave power alone could

produce up to 80,000TWh/year (five times global

electricity consumption)

> Wave - less intermittent, out of phase and much more

predictable than wind

> Tidal – completely predictable

> As the renewable energy mix diversifies, issues of

intermittency and stability are reduced

Ireland has a huge marine

resource:

> Potential to meet 75% of

Ireland’s current energy

MARINE ENERGY – THE OPPORTUNITY FOR IRELAND

Ireland’s current energy

demand (7.8GW installed)

> Target of 500MW by 2020 =

around 10% of Ireland’s

renewable portfoliio

WHERE ARE THE OPPORTUNITIES FOR WAVE ENERGY IN IRELAND?

MARINE ENERGY IN IRELAND

200200200200

250250250250

300300300300

£ 2009 /MWh

£ 2009 /MWh

£ 2009 /MWh

£ 2009 /MWh

0000

50505050

100100100100

150150150150

2010201020102010 2011201120112011 2012201220122012 2013201320132013 2014201420142014 2015201520152015 2016201620162016 2017201720172017 2018201820182018 2019201920192019 2020202020202020

£ 2009 /MWh

£ 2009 /MWh

£ 2009 /MWh

£ 2009 /MWh

Financial Year EndingFinancial Year EndingFinancial Year EndingFinancial Year Ending

Total Revenue UKTotal Revenue UKTotal Revenue UKTotal Revenue UK

Total Revenue Ireland Total Revenue Ireland Total Revenue Ireland Total Revenue Ireland

Total Revenue PortugalTotal Revenue PortugalTotal Revenue PortugalTotal Revenue Portugal

THE SCALE OF THE OPPORTUNITY

120120120120

140140140140

160160160160

180180180180

Global Installed Capacity (GW)

Global Installed Capacity (GW)

Global Installed Capacity (GW)

Global Installed Capacity (GW) Greenpeace Windforce 10 (1999)Greenpeace Windforce 10 (1999)Greenpeace Windforce 10 (1999)Greenpeace Windforce 10 (1999)

IEA World Energy Outlook (1998)IEA World Energy Outlook (1998)IEA World Energy Outlook (1998)IEA World Energy Outlook (1998)

IEA World Energy Outlook (2002)IEA World Energy Outlook (2002)IEA World Energy Outlook (2002)IEA World Energy Outlook (2002)

0000

20202020

40404040

60606060

80808080

100100100100

1980198019801980 1990199019901990 2000200020002000 2010201020102010 2020202020202020

Global Installed Capacity (GW)

Global Installed Capacity (GW)

Global Installed Capacity (GW)

Global Installed Capacity (GW)

IEA World Energy Outlook (2002)IEA World Energy Outlook (2002)IEA World Energy Outlook (2002)IEA World Energy Outlook (2002)

RealityRealityRealityReality

MARINE ENERGYTHE BENEFITS FOR IRELAND

> Clean energy – significant carbon savings

> Security of supply (91% of Ireland’s energy supply was imported in 2006)

> Creation of a new industry and highly skilled employment in Ireland

> Whilst the €220 per MWh costs the consumer, it is likely to reduce the market price

sufficiently to more than offset this cost, as seen with wind

> Potential to create export market for Ireland – power, technology, skills, IP

KEY REQUIREMENTS OF WAVE ENERGY TECHNOLOGY

Wave energy

technology must be...

> Easy to build

> Easy to install

> Easy to operate

> Easy to maintain

> Easy to diagnose

KEY ADVANTAGES OF OYSTER!

Oyster is...

� Easy to build� Easy to build

� Easy to install

� Easy to operate

� Easy to maintain

� Easy to diagnose

DESIGNED SIMPLICITY

EMEC: OYSTER 1

Onshore hydraulic power

conversion

EMEC grid substation

Oyster 1 WEC 500m pipelines

> AccessibleAccessibleAccessibleAccessible – generation equipment is onshore – accessible 24/7

OYSTERKEY BENEFITS

> AccessibleAccessibleAccessibleAccessible – generation equipment is onshore – accessible 24/7

> ReliableReliableReliableReliable – conventional hydro-electric power station – proven, reliable

> SurvivabilitySurvivabilitySurvivabilitySurvivability – no “survival mode”, naturally ducks under extreme waves and keeps

generating

> High capture factor High capture factor High capture factor High capture factor – uniform wave direction, amplified surge forces

> Economies of scaleEconomies of scaleEconomies of scaleEconomies of scale – one generator, multiple flaps & low cost fabrication

> Low weight to power ratio Low weight to power ratio Low weight to power ratio Low weight to power ratio - compared to alternatives, including offshore wind

MARINE ENERGYPOSITIVE STEPS IN IRELAND

> Significant government support for marine energy in Ireland:

• Commitment to REFIT (€220 per MWh feed in tariff)

• Development of Belmullet test centre

• Establishment of Ocean Energy Development Unit (OEDU)

• Establishment of SEI Prototype Development Fund

• Smart Bay Project (Galway)

NOT JUST ABOUT THE COST… ITS ABOUT THE BENEFIT

GERMANYREAPING THE BENEFITS

> Creating saving of €6.1bn

> Increase in domestic turnover from installation/operation of renewables systems –

increase from €18.1bn in 2005 to around €22.9bn in 2006

> Increase in employment in renewable sector – rose from 160,000 in 2004 to over

230,000 in 2006

> Creation of export market – over 70% of wind production technology exported

> Reduced carbon emissions - CO2 emissions reduced by 100m tonnes in 2006

WHAT’S NEXT?THE WAY FORWARD

> Developer support for MRIA (Marine Renewable Industry Association) and OEDU

(Ocean Energy Development Unit)

> Wave power must have at least 500MW of grid capacity allocated to it outside of the

gate process

> Continued commitment to REFIT scheme

> Streamlined approach to licensing and leasing the seabed - clear, consistent and

proactive policies and processes

GARTH BRYANSGARTH BRYANSSENIOR RESOURCE ANALYST

AQUAMARINE POWER10 ST ANDREW SQUAREEDINBURGHEH2 2AFUNITED KINGDOM

Tel: +44 131 718 6011Fax: +44 131 718 6100Mobile: +44 7503 881503Email: garth.bryans@aquamarinepower.comWeb: www.aquamarinepower.com