The global ocean energy sector is at a turning point, with over 45 wave and tidal prototypes expected to be ocean tested in 2010 and 2011, after only a dozen were installed in 2009, according to US analysts IHS Emerging Energy Research.
If these initial projects are successful, the global ocean energy programme could start to ramp up, with IHS saying that more than 1.8gigawatts (GW) of ocean projects in 16 countries are currently in the pipeline.
And it is the UK that has a commanding lead … at least for now.
IHS notes that ocean energy has attracted a slew of established energy companies nursing renewable growth ambitions.
They include leading European utilities such as ScottishPower and Scottish & Southern Energy, plus global technology suppliers – many with hydro and offshore wind experience.
The analysts confirm the UK’s claim that it is currently the world’s leading market for ocean energy, with 300mw of projects in the pipeline seeking to be installed over the next five years.
The UK government hopes to add 1.3GW by 2020, driven by its need to meet legally binding 2020 renewable targets. Ireland, France, Portugal, South Korea and Australia are also key ocean energy markets and will remain the industry’s primary focus for the next decade, according to the study.
Of the various forms of ocean energy, tidal is expected to mature first, with the promise of providing predictable, lower-cost electricity and a standard design. Tidal is attracting major original equipment manufacturers (OEMs) into the ocean energy industry’s supply side.
“The strong synergies between tidal turbine manufacturing and the hydro power industry have attracted major power sector OEMs,” said IHS analyst Marianne Boust.
“Over the past two years, all three of the major hydro power turbine vendors-Andritz Hydro, Alstom Hydro, and Voith Hydro-who account for over 80% of the total global hydro turbine supply, have jumped into the tidal sector.
“Large hydro players see tidal as a synergistic growth opportunity, with at least 150gw of installed capacity potential globally. Traditional hydro players are critical to catalysing faster development and commercialisation of the tidal industry,” added Boust.
“Greater involvement by large OEMs will help the ocean energy industry overcome its technological challenges and drive down costs.”
Several key players active in Europe’s scaling offshore wind industry, are also turning their attention to ocean energy as they scale their renewable portfolios.
She said: “Major European utilities led by Iberdrola-ScottishPower, Vattenfall, RWE and SSE have an extensive presence in offshore wind and each has broadened its offshore activities to include ocean energy. While a few have taken equity stakes in ocean technology promoters, most are now shifting to fund project development joint ventures.”
Boust added that ongoing policy support and the entrance of established energy players competing alongside maturing technology promoters signal the ocean industry’s potential to advance and emerge as a scalable renewable energy alternative during the next decade.
