Marine Energy Action
Plan 2010
Executive Summary
& Recommendations
Contents
Foreword 3
Executive Summary
5
1. Introduction
1.1 Scope
1.2 The Vision and Opportunity
1.3 The Challenges
13
14
14
19
2. Summary of Recommendations
2.1 Technology Roadmapping
2.2 Environment, Planning and Consenting
2.3 Finance and Funding
2.4 Infrastructure, Supply Chain & Skills
2.5 Tidal Range
23
24
26
28
29
31
3. Next Steps & Further Work
3.1 Immediate tasks
3.2 Ongoing tasks
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38
38
Annex A Members of Marine Energy Action Plan
Contributors to the Marine Energy Action Plan drafting and/or Members of
Working groups
41
41
Annex B Economics of Wave and Tidal Energy
Wave Energy
Tidal Stream
Tidal Range
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45
46
47
48
43
Foreword
Foreword
Our seas present a fantastic and as yet, largely untapped asset
that can generate clean energy that will boost our transition to a
low carbon economy. Wave and tidal energy technologies will
not only make a valuable contribution to meeting our long term
carbon reduction targets but increase the security of our energy
supply and create jobs and export opportunities.
Wave and tidal stream in the UK is at a pivotal point in its
development. We are rightly seen as a world leader in the
development of these technologies and the UK is a global focal
point for deployment. The UK also has numerous tidal range sites that are ideal for the
deployment of tidal range technologies. We have a big opportunity to embrace the
wider benefits of all these technologies, and we need to capitalise on the potential of
this sector and drive the industry forward.
The Government is committed to meeting that objective. The UK already has worldclass testing centres in NaREC, EMEC and Wave Hub. Alongside our colleagues in the
Devolved Administrations, Government has put in place comprehensive support
measures for research, demonstration and deployment – particularly through The
Carbon Trust, the Technology Strategy Board, the Energy Technologies Institute, the
Regional Development Agencies and DECC. But, there is further work to do to make
large scale deployment of wave and tidal energy a reality.
This Marine Energy Action Plan represents an ongoing opportunity for UK Government
and industry, together, to set the agenda in a collaborative and strategic manner. This
document represents the contributions of many players across the public and private
sector. It flags up the main barriers to moving wave and tidal energy forward into
commercial deployment and considers what each needs to do overcome them.
This will be the first step on a continuing journey through which we will work together
to enable wave and tidal technologies to take their rightful place in a diverse, lowcarbon energy mix.
Rt Hon Lord Hunt of Kings Heath OBE
Minister of State for the Department of Energy and Climate Change
3
Executive
Summary
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Marine Energy Action Plan 2010 Executive Summary & Recommendations
Executive Summary
The UK is a world-leader in wave and tidal stream technologies and the global focalpoint for their development due to the level of resource around our shores, whilst the
UK also has numerous tidal range sites, including the world’s second highest tidal
range in the Severn Estuary. There are wider benefits and opportunities to embrace in
the development of all these technologies, and to capitalise on the potential of the
marine energy sector, there is a need to drive forward this emerging industry.
This Marine Energy Action Plan is intended to set out an agreed vision for the marine
energy sector to 2030. It outlines the actions required by both private and public
sectors to facilitate the development and deployment of marine energy technology
and intends to fulfil the vision set out in the UK Renewable Energy Strategy and Low
Carbon Industrial Strategy. Covering wave, tidal range and tidal stream energy, the
Action Plan has a UK-wide focus while respecting the diversity of policy making roles
under the Devolution Settlement. There are likely to be many opportunities for
collaborative working and information sharing across the UK as this sector develops;
the UK Government and Devolved Administrations have agreed to work together
and pursue these opportunities wherever it is possible to do so.
It is envisioned that marine renewable energy could play an important role in the
period to 2020 as the sector begins to roll out larger arrays of devices. This will be
followed by large scale deployment in the period beyond 2020 that will help to meet
the Government’s policy for an 80% cut in carbon emissions by 2050 and which will
create a new and successful UK industry. A potential deployment plan for wave and
tidal stream technologies is indicated below in Figure 1.
This document aims to encourage those already involved in the sector to engage more
closely and to stimulate those that are new to the sector to act upon the opportunities
which the development and growth of an innovative, new UK based industry presents.
The recommendations from this Plan however focus on the actions required by the key
actors in the industry including: Government and its relevant departments (e.g. DECC,
BIS, Defra, DfT); Devolved Administrations (Northern Ireland Executive, Scottish
Executive, Welsh Assembly Government); the Infrastructure Planning Commission,
Non-Departmental Public Bodies (NDPB) (Marine Management Organisation and
Marine Scotland); Regional Development Agencies); The Crown Estate; delivery
partners (Carbon Trust, Energy Technologies Institute, Technology Strategy Board), UK
funding councils; Statutory Agencies (Natural England (NE), Countryside Council for
Wales (CCW), Joint Nature Conservation Committee (JNCC), Environment Agency
(EA), Scottish Natural Heritage (SNH), Northern Ireland Environment Agency (NIEA));
marine energy technology developers; Utilities; the investment community (Angel,
Venture Capital, Private Equity); manufacturers; ports & marine infrastructure
organisations; higher education centres and academia.
Executive Summary
7
Figure 1
Potential Deployment plan for wave and tidal stream technologies out to 20301
UK Wave and Tidal Stream Deployments
2015
2010
2025
2020
2030
FULL-SCALE DEMO
SMALL ARRAYS (2 - 10MW)
LARGE ARRAYS (10 - 100MW)
1st GENERATION
SYSTEMS
BUILDOUT OF PROJECTS
2nd and 3rd GENERATION SYSTEMS
Capital support for research
and development projects
Capital and revenue support schemes
for array deployments
Long-term market support
The full sector engagement approach as used in the Marine Energy Action Plan has
allowed government and industry to discuss how to address the key issues for the
development of this rapidly moving sector. Over the last year the Scottish Executive2
and the Department of Enterprise, Trade and Investment in Northern Ireland3 have
published their own marine energy road-mapping reports. However, the Marine Energy
Action Plan has considered the issues facing the sector at a UK level. Although the
Executive Summary has been produced by DECC, it has been working in consultation
with all the relevant stakeholders (see Annex A: members of marine energy action plan
Group) to produce a realistic, practical and pragmatic document. Work under the Action
Plan was split into five working groups: Technology Roadmapping; Environment,
Planning & Consenting; Finance & Funding; Infrastructure, Supply Chain & Skills; and
Tidal Range (which acted as a subgroup to include all of these areas of focus).
Many of the technologies involved in developing tidal range projects are very different
from those used for wave and tidal stream – construction being more akin to large civil
engineering infrastructure. Because there are a number of areas where the barriers and
challenges facing tidal range diverge from other marine renewables, the Marine Energy
1
2
3
UKERC, ETI Roadmap (2010)
FREDS Marine Energy Group – Marine Energy Road Map,
http://www.scotland.gov.uk/Resource/Doc/281865/0085187.pdf
A Draft Offshore Renewables Strategic Action Plan 2009,
http://www.offshorenergyni.co.uk/EnvironmentalReport.html
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Marine Energy Action Plan 2010 Executive Summary & Recommendations
Action Plan has considered the specific issues relating to tidal range separately and has
developed sector-specific recommendations to address these.
As a result of discussions in the working groups five high level themes emerged which
focus on:
• the need to prove the technology, particularly to stimulate Iong-term investor
confidence;
• providing the appropriate regulatory frameworks;
• ensuring appropriate funding is in place for the sector (public and private);
• co-operation and engagement across the sector and supply chain; and
• the importance of interdependency of all these themes.
Proving the Technology The sector requires technology that works and that can
successfully and continuously operate in the harsh conditions of the marine energy
environment. Wave and tidal stream are emerging technologies which are taking steps
to prove their ability to harness the energy from the seas and estuaries. With regard to
wave energy technologies, there are a plethora of devices and we are yet to see a
convergence of ideas and a consolidation of the market towards design consensus.
These different design concepts are so numerous in part because of the various
locations at which wave energy can be generated; for example, offshore, nearshore
and the range of different energy conversion approaches which are possible.
Conversely, tidal stream devices have seen some aspects of design consensus
occurring with a trend towards horizontal axis turbines. Overall, the development of
Construction of the 650kW Pelamis Mark I wave energy converter prototype
Executive Summary
9
wave and tidal stream devices require
cost reduction and further step changes
in technology development thereafter.
Cost reduction is likely be found through
fundamental changes in the engineering
design of devices; anchoring; more
efficient use of materials; new and
innovative ways of conducting
installation, operation and maintenance;
and increased efficiency of components.
Traditional tidal range technologies
(barrages in particular) use proven highMarine Current Turbines’ 1.2MW SeaGen tidal
head turbine technologies, however even
turbine in Strangford Narrows, near Portaferry,
some applications of lagoon and
Northern Ireland
impoundment structures are yet to be
finalised. Hybrid tidal range technologies face the same challenges as wave and tidal
stream and more environmentally-friendly and potentially commercially attractive low
head turbines require considerable development attention.
The Marine Energy Action Plan key recommendation for Technology
Roadmapping theme is that the UK Government delivery partners continue to
provide appropriate levels of support to ensure the effective and successful
technology development by funding:
• first and second generation sea trials of wave and tidal stream devices;
• arrays of devices; and
• development of novel tidal range technologies.
More detail and other recommendations can be found in Section 2.1 and
Section 2.5.
Appropriate Regulatory Framework The regulatory framework informs the sector as
to how it will be able to operate whilst providing the sector with transparency on the
strategy and plans for UK marine energy development to see the long-term gain. It also
provides the necessary protections against the potential adverse effects of deploying
structures in the marine environment. The framework includes provision of a marine
renewables-ready grid system, clearer marine planning processes and approaches to
environmental monitoring and assessment, Strategic Environmental Assessment for
wave and tidal energy (recently announced in March 2010 in England and Wales, and
already completed for Scotland and Northern Ireland), and the potential opportunities
for further commercial leasing. These all provide signals to encourage new investors to
enter the industry. The implementation of the Marine and Coastal Access Act 2009 is
also a major development in the sustainable management of the UK marine area.
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Marine Energy Action Plan 2010 Executive Summary & Recommendations
The Marine Energy Action Plan key recommendation for the Environment,
Planning & Consenting theme is that the UK Government set up and participate
in a representative strategic coordination group of statutory agencies and other
relevant stakeholders to produce a planning consenting roadmap that explores
the key issues surrounding the deployment of devices.
More detail and other recommendations can be found in Section 2.2 and 2.5.
Financial Support Finance and funding is imperative to this developing sector and
without significant investment from both public and private sources, the opportunity to
harness the full potential of this sector will not be realised in the UK. The potential
market size and growth opportunity should provide investors with a clear message that
there is a long-term future for this marine energy industry. Leveraging finance from the
investor community, utilities and major manufacturers will ensure a continued focus on
reducing costs and the commoditisation of components for wave and tidal stream
technologies in particular. Appropriate public funding is also very important and
Government considers, that within the constraints of public spending rounds and
departmental budgets, the immediate priority is to provide targeted capital support for
applied research and development through to support for demonstration and
deployment, which will focus on a small number of market-leading technologies to
enable the consolidation and growth of the sector. Appropriate targeted support also
exists for generic technology development to ensure continued cost reductions
necessary for the sector. This would be combined with the use of appropriate longerterm market signals. An example of this is the Renewables Obligation which is the
Government’s main mechanism for supporting renewable energy technologies. It
works by placing an obligation on licensed electricity suppliers to produce a specified
number of Renewable Obligation Certificates per MWh, which then increases annually,
or risk paying a penalty. The overall objective for the support to provide sufficient
technology push to progress devices through to early commercial stages whilst also
providing a market pull and sufficient confidence to give the levels of investment
needed to move to a large scale deployment phase.
The Marine Energy Action Plan key recommendations for the Finance and
Funding theme are that the UK Government:
• seek to ensure that the appropriate levels of targeted funding are available,
to bridge the technology market failures that exist in this developing sector
(subject to the budgets in the next public spending round);
• take account of evidence suggesting that commercial deployment of marine
technologies may not be economic at current level of support in the scheduled
Renewables Obligation (RO) banding review set to take place in Autumn 2010,
while recognising that support levels also need to take into account the
impact on energy consumers; and
• build on existing dialogue between funding bodies and others (e.g. Low
Carbon Innovation Group) by setting up a strategic coordination group that
Executive Summary
11
encompasses Government and Devolved Administrations, Regional
Development Agencies, Carbon Trust, TSB, ETI, EPSRC Supergen Marine to
ensure that a strategic overview for Government funding exists and that value
from Government expenditure is maximised.
More detail and other recommendations can be found in Section 2.3 and 2.5.
Supply Chain Co-ordination Co-operation, engagement and the building of
meaningful partnerships across the marine energy sector and supply chain is vital to
the industry. This will enable the sector to ready itself for commercialisation and large
scale deployment of wave and tidal stream technologies and also for the development
of tidal range sites. The extensive development of the supply chain (manufacturers,
ports, vessels, transport infrastructure) alongside skills and education of the sector will
be required to provide the necessary workforce for an ever-expanding marine
renewables industry. There is also scope for cross-sector coordination on the
development of environmental baseline data of early device deployment which could
form a valuable sector-wide resource.
The Marine Energy Action Plan key recommendation for the Infrastructure,
Supply Chain and Skills theme is that the UK Government and all relevant
stakeholders in the sector capitalise on opportunities for marine energy by
learning from and building on synergies related to the skills and supply chain for
offshore wind.
More detail and other recommendations can be found in Section 2.4 and 2.5.
Overall, it is important to recognise that none of these factors can be considered
individually. They are all interdependent and require full engagement and exchange
across the sector to ensure the full benefits are realised for the industry.
There is an immediate need for everyone to work in tandem and this Marine
Energy Action Plan outlines the key actions that the sector are all tasked to
deliver. Full details of these are provided in Chapter Two.
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Marine Energy Action Plan 2010 Executive Summary & Recommendations
1. Introduction
14
Marine Energy Action Plan 2010 Executive Summary & Recommendations
1. Introduction
1.1 Scope
The UK is classed as the world leader in the development of marine renewable
energy technologies, due to the high level of marine energy resource, its highly skilled
expertise and the world-class testing facilities that are available and planned. With the
exception of traditional tidal range high head turbine technologies, the embryonic status
of the wave and tidal stream energy technology creates considerable challenges for its
development. This Marine Energy Action Plan focuses on wave and tidal stream and
tidal range technologies – using the phrase ‘marine energy’ to denote these generation
technologies. However, this does not include marine biomass or ocean thermal energy
conversion, osmotic pressure or offshore wind. It also does not have any specific
references to the work relating to the feasibility study for Severn Tidal Power. It does
however recognise that some of the infrastructure developments for our massive
offshore wind programme will provide some of the building blocks for accelerating
the exploitation of all our UK maritime energy resources.
1.2 The Vision and Opportunity
It is envisioned that marine renewable energy could play an important role in the period
to 2020 as the sector begins to roll out larger arrays of devices. This will be followed by
mass deployment in the period beyond 2020 that will help to meet the Government’s
policy for an 80% cut in carbon emissions by 2050 and which will create a whole new
successful UK industry. Government agrees with the sectors assessment for wave
and tidal stream that 1-2GW installed capacity could be achieved by 2020. Although
aspirational and challenging, it is broadly realistic if all stakeholders are able to put in
place the appropriate mechanisms to enable this level of deployment. From this it then
provides a suitable platform on which to build larger scale deployment to 2030 and
beyond. Similarly, if a good proportion of tidal range projects that are planned (e.g.
Mersey, Solway), come to fruition, it could see the deployment level of 1GW by 2020
irrespective of any decisions on the Severn Estuary. To do this, there is an immediate
need to enable the sector to take advantage of the UK’s strong position by creating
the opportunity for the supply chain and industry in this maritime sector.
Subsequently, there is a clear case to support marine energy development because
of a number of factors including:
• Level of energy resource;
• Benefits to the Economy, Industry & Employment;
• Low Carbon Electricity; and
• Energy security.
1. Introduction
15
The 650kW Pelamis wave energy converter undergoing sea trials
1.2.1 The Resource
The UK leads the world in marine technology and has world-class resources in all of the
three marine sectors: wave, tidal stream and tidal range. Wave and tidal energy have the
potential for bulk electricity supply in the UK and work carried out by the RenewableUK
(formerly BWEA) and The Carbon Trust has suggested that marine (wave and tidal
stream) energy may have the potential to meet 15-20% of the UK’s current electricity
demand in the first main commercial exploitation phase.4
The full extent of the wave and tidal stream resource which can be exploited for energy
generation is dependent on many factors (e.g. turbine interactions, device spacing and
cumulative impact) and as technologies develop, understanding of the available
resource will improve. Estimates indicate that the practical resource level for wave
energy in the UK waters is in the order 50 TWh/year5, (which is equivalent to the annual
electricity demand of approximately 11 million UK households6) but with a higher
technical potential. The total UK tidal stream potential is indicated to be in the order of
17TWh/year7,8,9 (which is equivalent to the annual electricity demand of approximately
4 million UK households10). This is derived from a method that provides the most
4
5
6
BWEA, Path to Power, 2006
The Carbon Trust (2006) Future Marine Energy
Calculated by dividing practical resource level for wave (TWh/yr) by average annual UK household electricity
demand (Source: DECC, Regional and Local Authority Electricity Consumption Statistics 2005-2008, http://
www.decc.gov.uk/en/content/cms/statistics/regional/electricity/electricity.aspx)
7 SKM (2008) Quantification of Constraints on the Growth of UK Renewable Generating Capacity
8 Black & Veatch (2005) Phase II UK Tidal Stream Energy Resource Assessment, Carbon Trust
9 Sustainable Development Commission (2007) Turning the Tide, Tidal Power in the UK,
10 Calculated by dividing total tidal stream potential (TWh/yr) by average annual UK household electricity demand
(Source: DECC, Regional and Local Authority Electricity Consumption Statistics 2005-2008, http://www.decc.
gov.uk/en/content/cms/statistics/regional/electricity/electricity.aspx)
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Marine Energy Action Plan 2010 Executive Summary & Recommendations
conservative estimate11 and although there are a number of methodologies to estimate
the values of tidal stream resource, it is accepted by the sector as the appropriate
analysis technique in some tidal energy conditions. Other methods of estimating the
tidal stream resource result in higher technical potentials12,13,14,15. There are uncertainties
regarding these pieces of work but the potential resource they suggest is sufficiently
large to justify urgent further research by Government.
Overall, the potential opportunities presented by this marine resource has led to the
UK becoming a focus globally for the development and deployment of wave and tidal
stream technologies.
The UK also has significant tidal range resource with the world’s second highest tidal
range site being located in the Severn Estuary with a benchmark energy output of
17TWh/yr from a Cardiff-Weston barrage. The other highest resource sites in the UK
include the Mersey (1.4TWh/yr), Duddon (0.212TWh/yr), Wyre (0.131 TWh/yr) and
Conwy (0.06TWh/yr). Through these tidal range projects and others that there is an
opportunity to potentially provide up to 13% of the UK’s electricity generation from
tidal range alone16.
Maps of the UK’s wave, tidal stream and tidal range resource from the Marine Atlas
(2008) are given in Figures 2, 3 and 417.
Figures 2, 3 and 4
Mean Spring Tidal Range, Mean Spring Tidal Stream and Annual Mean
Significant Wave Height17
11 Blunden, L. S., Bahaj, A.S., (2006) Tidal energy resource assessment for tidal stream generators
12 Houlsby, G.T., Oldfield, M.L.G., Draper, S., “The Betz Limit and Tidal Turbines,” Report Commissioned by
Lunar Energy, 2008.
13 Taylor, G.I., “Tidal Friction in the Irish Sea,” Philosophical Transactions of the Royal Academy, 1918.
14 Salter, S.H., Taylor, J.R.M.T., (2007) Vertical-Axis Tidal-Current Generators and the Pentland Firth. Proceedings
of the Institution of Mechanical Engineers, Part A: Journal of Power and Energy,
15 David J.C. MacKay (2008) “Sustainable Energy – without the hot air”. UIT Cambridge, 2008.
ISBN 978‑0‑9544529-3-3. Available free online from www.withouthotair.com.
16 Sustainable Development Commission (2007) Turning the Tide, Tidal Power in the UK,
17 Department of Business, Enterprise & Regulatory Reform (BERR) (2008) Atlas of UK Marine Renewable
Energy Resources http://www.renewables-atlas.info/
1. Introduction
17
1.2.2 Benefits to the Economy,
Industry & Employment
The UK has a unique opportunity to
capture the benefits of this new sector
through the entire supply chain; from
research and development through to
engineering, manufacturing, installation,
operation and maintenance. This builds
on our maritime tradition, most recently
expressed over the past 40 years in oil
and gas exploration and currently with
offshore wind developments. The
development of marine technologies will
lead not only to a substantial marine
energy generation industry in the UK, but
more importantly to a substantial supply
chain. If the UK’s technological lead is
maintained, a large part of that supply
chain will be based in the UK resulting in
an attractive environment for domestic or
inward investment in manufacturing
facilities.
Aquamarine’s Oyster device being readied for
deployment
Development of the domestic facilities will also provide significant opportunity for
exports of both technology and knowledge. With regards to employment, in the longer
term the potential for jobs arising from the wave industry alone will continue to
increase, peaking at 16,000 in the 2040s with about 25% of them supporting UK
exports18. Many of the leading device developers are from the UK and they enjoy a
comparative advantage due to the extensive domestic knowledge and experience. The
UK has engineering and manufacturing expertise in the complex systems required for
the power conversion systems, which are high value and can be exported globally. The
UK’s offshore experience of those industries in the North Sea shows that they are
clearly valuable for wave device operations and maintenance and also for science and
engineering expertise. This allows the strong, already embedded UK workforce to
transfer skills across to this developing sector and the ability to build on the supply
chain and infrastructure being created for offshore wind.
1.2.3 Low Carbon Electricity & Energy Security
If marine energy technologies can be successfully developed they have the potential
to make a significant contribution towards achieving our medium and longer terms
renewable energy and emissions reduction goals. A mid-level deployment projection
18 Carbon Trust Focus for Success 2009
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Marine Energy Action Plan 2010 Executive Summary & Recommendations
Inspection of SeaGen’s 16m turbine blades at Harland and Wolff shipyards, Belfast
of 2.6GW installed capacity of wave and tidal stream by 2030 (on the basis of fairly
conservative assumptions) could provide carbon abatement benefits of 17Mt of CO2,
valued at £520million to 2030 (with the central projected EU-ETS carbon price). By
2050, wave and tidal stream could save 61Mt of CO2 valued at £1.1bn. With regards to
tidal range the mid-level deployment projection of 950MW of non-Severn estuary tidal
range capacity could save a further 9Mt of CO2 by 2050 valued at £330m19.
The delivering of low carbon electricity through a diverse mix of renewable energy
technologies is indicated in the Low Carbon Transition Plan published in 2009 to provide
a mechanism that helps the UK to move to a low carbon economy. It delivers energy
security by reducing the risk of problems that may arise with over-reliance on one type
of technology or fuel. Marine energy technologies are seen to diversify the energy mix
in a longer term strategy, as they are only expected to contribute up to 3% of
renewable electricity in 2020. However, the UK annual renewable energy target of 15%
by 2020 is extremely challenging and every few terawatt hours of generation will be
important in trying to meet it. As referenced in section 1.3, the extent of the resource
available is extensive and provides a domestic source that reduces the reliance on
imported fuels, so improving the UK’s security of energy supply.
Although marine energy is intermittent, the benefits of tidal energy is that it is
predictably intermittent (or eminently predictable) so it can form part of the energy
system’s baseload to provide bulk electricity to the grid, unlike offshore wind whose
unpredictable intermittency provides a greater challenge with regard to balancing
19 Ernst & Young, Black & Veatch Economics of Wave and Tidal Energy (see Annex B for more information).
1. Introduction
19
electricity supply and demand. Wave energy, although still intermittent is much more
predictable over longer periods than, for instance, wind giving more scope for short
term planning of grid usage Having a diversified renewables mix with marine energy
as well as wind intermittent generation will reduce the need for back-up and reserve
capacity, and hence lead to fuel and CO2 savings. According to research completed
by Redpoint20, the use of marine energy will allow for reduction in extra renewable
capacity required to reduce wastage of when generation exceeds demand, which
could potentially save up to around £900m a year in costs.
However, there is still a need to strike a balance between making the most of the
UK marine opportunity and finding solutions to the challenges it presents. These
challenges are described below.
1.3 The Challenges
To enable an ambitious and challenging deployment level for marine energy
technologies there are a number of hurdles that the sector faces, which the Marine
Energy Action Plan workstreams have targeted.
Technology Roadmap The technical potential of wave and tidal stream devices still
needs to be proven and there is still a long way to go until the sector reaches the
technical potential for large scale deployment. There have been a number of
technological successes with getting devices in the water and this route towards
commercialisation needs to continue.
There are however, a number of other factors that have a direct role to play in enabling
large scale deployment which will require addressing before the creation of a
potentially significant industry. These include:
Environment, planning and consenting The new marine planning system will guide
and direct decision-making but a continued clear process for planning and consenting
frameworks is required in a timely manner to ensure the sector does not experience
delays and can continue to develop. New development consenting systems under the
Planning Act 2008 and Marine and Coastal Access Act 2009 provide opportunities for
more streamlined processes that are more transparent, efficient and effective, and
these need to be fully realised as part of the new legislative framework. The
identification and development of sites for the deployment of marine energy will also
give the right signals and confidence to the sector, and will encourage new investors.
Finance and funding The sector requires a significant level of financial support both
public and private to enable initial prototype deployment and of large-scale arrays and
significant projects. The costs associated with developing marine technologies are
particularly high for a number of reasons. Testing and trialling in the marine environment
is expensive and the harsh sea conditions create additional risks and difficulties.
20 Redpoint, 2009, The benefits of marine technologies within a diversified renewable mix. Saving based on a
renewables mix of 60:40 wind to marine generation levels (or a 40:60 ratio), compared to a 100% wind
generation renewables mix.
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Marine Energy Action Plan 2010 Executive Summary & Recommendations
A full-scale prototype test could potentially have capital costs in the range of £10million
or more, so it is unlikely that without further support the sector can make the most
of the opportunity that this marine energy resource presents. Providing extra support
to marine and thereby inducing its subsequent deployment would require substantial
resources in the medium to long term to be made available. Initially the main levels
of support would be provided via targeted capital grants to develop the technology
through to commercial demonstration. Later, subsidy in the commercial deployment
phase would be largely through market support mechanisms (e.g. Renewables
Obligation). These main costs are expected to occur as the deployment levels step up.
Those initial deployments will then look to see a reduction in costs with benefits from
the economies of scale and learning curves associated with large scale deployment
beyond 2030. However, those actual costs will depend on a large number of factors,
including how early technological and engineering barriers are overcome, the
development of supply chain capacity, continued technical progress and deployment
rates.
One of the key challenges facing mainstream deployment of marine energy is the need
to reduce costs of generation to levels comparable to other renewables in the longer
term. As with any emerging technology, initial costs will be high until cost reductions
through learning and economics of scale are realised. This is a model that has been
followed by other technologies such as wind and solar. DECC and the Scottish
Government commissioned Black & Veatch and Ernst & Young to collect data on the
current generation costs of marine technologies and to model the development of
these technologies from now to 2050. There is a very large amount of uncertainty
surrounding such projections which go so far out into the future. The results on the
levelised costs21 of wave and tidal stream and tidal range are provided in Annex B:
Economics of Wave and Tidal Energy and should be regarded as illustrative. However,
the results do show some encouraging figures and recognise this trend for significant
reduction in costs over time.
Infrastructure, supply chain and skills A marine renewables-ready UK grid system
is essential for the level of deployment required to help meet climate change targets,
however marine renewables also requires a significant building-up of the supply chain
infrastructure and the appropriate skills to enable it.
The supply chain requirements aim to build on the considerable expertise available in
the UK’s historic maritime sector, promoting both domestic investment in facilities
associated with the sector (including ports and vessels, manufacturing and engineering)
whilst also boosting both the export of technology and knowledge worldwide.
Tidal Range The nature of conventional tidal range projects, especially the construction
of tidal barrages and lagoons present different challenges to those faced by wave and
tidal stream. Financing, consenting and licensing are likely to be comparable across all
21 Levelised costs refer to the cost of the energy-generating system including all the costs over its lifetime,
e.g. initial investment, operations and maintenance, cost of fuel, cost of capital
1. Introduction
21
the marine sectors but there are
significant areas of difference. Barrage
construction is more akin to large scale
civil engineering infrastructure
development than the deployment of
wave or tidal stream arrays. Because of
this supply chain restrictions on material
availability (e.g. cement and aggregates)
and availability of civil and maritime
construction services are significant risks
in these projects. The environmental risks
of high-head turbine tidal range
developments are also perceived as
being greater than wave and tidal stream
Open Hydro’s prototype tidal turbine being tested
projects. In particular changes to the
at the European Marine Energy Centre’s Fall of
marine environment can cover a much
Warness tidal testing site
wider area, especially the effects on the
shoreline of the impounded area arising from changes to the tidal cycle.
The recommendations set out in the Marine Energy Action Plan largely apply across
the marine energy sector. However, where there are issues which are unique to tidal
range projects, these have been considered separately and sector specific
recommendations produced for tidal range.
Consequently, these hurdles and the specific challenges that the marine energy sector
faces has been the subject of considerable discussion within the Marine Energy Action
Plan meetings. The following summary of recommendations sets out the actions that
the Government and sector will seek to deliver over the forthcoming development
period.
22
Marine Energy Action Plan 2010 Executive Summary & Recommendations
2. Summary of
Recommendations
24
Marine Energy Action Plan 2010 Executive Summary & Recommendations
2. Summary of
Recommendations
The recommendations below are an amalgamation of requirements by the many
players across the public private sector (see Annex A for Marine Energy Action Plan
members), flagging up the main barriers to moving wave and tidal energy forward into
commercial deployment and considers recommendations of what needs to be done to
overcome them.
2.1 Technology Roadmapping for Wave and Tidal Stream
At the highest level, technology development and deployment will require measures to
address the underpinning generic technical challenges. These can be summarized as:
predictability, manufacturability, installability, operability, scalability, survivability,
reliability, and affordability. These are shown in Figure 4 below.
Figure 5
Generic Challenges involved in Marine Energy Development (source adapted
from UKERC)
Predictability
Affordability
Reliability
Manufacturability
Challenges
Survivability
Installability
Operability
Scalability
In relation to this, for the effective development of marine technology there is a need
to strike a balance between technology-push and market-pull mechanisms, to allow
for design consensus, but at the same time avoiding ‘lock-out’ of longer-term
breakthrough technologies which may allow for step-change performance and cost
improvements. Policy has an important role to play in the meeting the roadmap to
large scale deployments. It is vital that both the overall Marine Energy Action Plan
and the technology roadmap chapter are used to inform policy development and
2. Summary of Recommendations
25
therefore provide guidance for funding
bodies in terms of allocation of
development funding.
To ensure effective and successful device
deployments and underpin efficient cost
reductions for the sector, the Marine
Energy Action Plan recommends that UK
Government delivery partners such as
UK Funding Councils, The Carbon
Trust, TSB, ETI and the Devolved
Administrations continue to support
technology development (at both the
device and enabling technology level,
throughout the RD&D cycle) in the
following areas
• Device and system demonstrators:
by funding both first and second
generation sea trials as well as arrays
of devices. It is also imperative that
cost effective installation and recovery
methods are developed along with
appropriate operation and maintenance
techniques.
Construction of Aquamarine’s Oyster device
at Nigg, Scotland
• Device-components: by supporting the advancement of performance, reliability
and survivability of projects through funding the development of a range of enabling
components (e.g. in areas such as foundations and moorings; power take off
technology and wet-mateable connectors- to ensure a cost effective coupling to grid).
• Guidelines and standards: For the overall sector to progress, guidelines and
best practice should be established and supported. This will lead to the UK marine
sector being recognised by International Standards Bodies (e.g. International
Electrotechnical Commission) that in turn will enable the efficient export of UK
marine energy technology into international markets. The sector should also
determine what critical standards need to be developed and to what timelines.
• Tool development by exploring with industry how to develop a range of modelling
tools in areas such as resource analysis tools that are essential to underpin
development. This applies to both devices and projects through to design
optimisation tools to facilitate the manufacturability and affordability to technology.
Finally, it must be noted that significant technology development programmes
are progressing internationally. The Marine Energy Action Plan recommends that
Government and its delivery partners engage and collaborate with international funding
bodies as appropriate to ensure a cohesive and coherent approach to technology
development
26
Marine Energy Action Plan 2010 Executive Summary & Recommendations
2.2 Environment, Planning and Consenting
The Marine Energy Action Plan recommends that:
• The full Strategic Environmental Assessment (SEA) for Wave and Tidal Energy in
English and Welsh waters as part of the UK Offshore Energy 2 SEA that the
Government launched in March 2010 is delivered in a timely manner. The Marine
Energy Action Plan recommends that DECC:
–– treats the development of the Marine elements of the SEA as a priority and
ensures that it is completed and in place within the expected Spring 2011
timetable, and
–– ensures that the work undertaken in the SEA relating to environmental monitoring
and effects is fed in to the Action Plan workstream on developing a pragmatic and
proportionate approach to the environmental monitoring of marine energy
deployment.
• that all relevant stakeholders fully engage in the development of the UK Offshore
Energy 2 Strategic Environmental Assessment to ensure the views of the industry
are fed into the process; and
In addition, the Marine Energy Action Plan endorses that subject to a marine
energy SEA for the relevant areas being undertaken The Crown Estate will look at
opportunities for commercial leasing opportunities in England and Wales. In the interim
The Crown Estate will consider demonstration arrays up to 10MW or 20 devices on a
case by case basis. The Crown Estate is initiating a programme of activities relating to
commercial offshore renewable energy leasing in Northern Ireland and Scotland
following the completion of relevant SEAs in these countries.
The Marine Energy Action Plan also recommends that:
• there is engagement between Government, Devolved Administration’s,
Statutory Agencies, Academia, Technology Developers, Utilities, and the
Marine Management Organisation to ensure that the needs of all are taken
in to consideration in the Marine Policy Statement (see pre-consultation document
paper on the draft UK Marine Policy Statement22);
• the UK Government and Welsh Assembly Government should ensure that it
prepares a National Policy Statement for marine energy, or updates the Renewable
Energy NPS as soon as the necessary information is available to develop a plan or
programme for the deployment of marine energy in the UK;
• that Marine Scotland and the MMO liaise to take advantage of any experiences
learnt from the Marine Scotland setting-up processes to enable the arrangements
of the new marine planning system to run smoothly;
22 http://www.defra.gov.uk/environment/marine/legislation/planning.htm
2. Summary of Recommendations
27
Aquamarine’s Oyster wave energy device being tested at the European Marine Energy Centre, Orkney
• the MMO seek clarity and unity with The Crown Estate regarding baseline
information on wave and tidal resource areas, consents and leasing;
• Government and Devolved Administrations make the preparation of guidance
for project developers regarding the process for consenting and licensing a priority;
• All stakeholders work with the Statutory Agencies to clarify those areas of
greatest importance for future energy extraction so that there is awareness across
the sector in the designation of Marine Conservation Zones and Marine Protection
Areas; and
• that DECC continues to explore with all relevant stakeholders how to create
and maintain a sector-wide sharing of environmental data and information.
To reflect the need for greater synergies across regulatory and industry bodies,
Government (including DECC, DEFRA, RDAs, Devolved Administrations) and The
Crown Estate should set up and participate in a representative strategic coordination
group including the MMO, Marine Scotland, CCW, Natural England, Scottish
Natural Heritage, Northern Ireland Environment Agency and The Environment
Agency. This group would be tasked to:
• produce a planning/consenting roadmap for marine renewables in all their forms;
• explore with the group what options may be available to minimise costs associated
with environmental monitoring;
• determine what strategic environmental research could aid the industry and in doing
so identify:
–– appropriate environmental data collection methodologies including consideration of a
‘deploy and monitor’ approach, as well as consideration for development timescales;
–– how to make better use of existing modelling and decision support tools; and
28
Marine Energy Action Plan 2010 Executive Summary & Recommendations
–– progress and encourage research scientists to actively develop predictive tools
appropriate for use in the marine renewable energy sector including those to
address impacts of large scale device arrays.
2.3 Finance and Funding
The Marine Energy Action Plan recommends that Government and Devolved
Administrations seek to:
• push cost-effective and viable marine energy technologies through to
commercialisation and should consider, within the constraints of the public spending
rounds and Departmental budgets how best funding should be applied to facilitate
the development of the marine energy sector. The Government considers that the
immediate priority for public funding is believed to be the provision of targeted capital
grants for applied research and development through to support for demonstration
and deployment. This will help to focus on a small number of market-leading
technologies to enable the consolidation and growth of the sector.
• retain the current UK-wide MRDF mechanisms or similar instrument as was stated in
the UK Renewable Energy Strategy published in July 2009 (subject to the budgets in
the next public spending round) and to extend its operation to cover new devices
reaching demonstration stage in the period 2011–2014.
• ensure that the appropriate levels of targeted funding (e.g. grants for R&D and
demonstration, venture capital) are available to bridge the technology market failures
that exist in this developing sector, subject to the budgets in the next public spending
round.
• take account of evidence suggesting that commercial deployment of marine
technologies may not be economic at current level of support in the scheduled
Renewables Obligation (RO) banding review set to take place in Autumn 2010, while
recognising that support levels also need to take into account the impact on energy
consumers.
• build on existing dialogue between funding bodies and others (e.g. Low Carbon
Innovation Group) by setting up a strategic coordination group that encompasses
Government and Devolved Administrations, Regional Development Agencies, Carbon
Trust, TSB, ETI, EPSRC Supergen Marine to ensure that a strategic overview for
Government funding exists and that value from Government expenditure is
maximised.
• continue its role to leverage venture capital and private equity funding in to the sector
whilst also considering how best to manage its resources to maximise the private
capital available.
• highlight wave or tidal as one of the three project applications for funding under the
European Commission in the New Entrants Reserve. This Reserve (€300million of
2. Summary of Recommendations
29
allowances) is available until 31
December 2015 (administered by the
European Investment Bank) to help
stimulate the construction and
operation of up to twelve commercial
demonstration projects, which although
aimed at carbon capture and storage
(CCS) projects it also applies to
demonstration projects of innovative
renewable energy technologies, of
which include both wave and tidal
stream.
In addition to this the Marine Energy
Action Plan recommends that:
• Government and the marine energy
industry should jointly seek to obtain
maximum benefit from EU funding
programmes.
• technology developers and their
Aquamarine’s Oyster wave energy device being
utility partners where appropriate
deployed at the European Marine Energy Centre’s
work together in the next 6 months to
Billia Croo wave testing site
prepare the information which will be
necessary for the scheduled RO
review, in order to provide the most accurate information relating to the technologies
to ensure the right level of ROCs is set.
• investment community (angel, venture capital, private equity) with sufficient capital
should be encouraged or continue to support technology developers during their
prototype development.
• major manufacturers and utilities should be encouraged or continue to invest
their capital and skills to the marine energy industry throughout the next phasing
of development and towards the consolidation and growth of the sector and in
particular to fund initial array development.
• manufacturers and relevant supply chain move in as quick as possible to take
the wave and tidal technologies forward to deployment scale, for example, by
helping to develop the commoditisation of components, with opportunities taken
where possible to build on the UK infrastructure being created to support offshore
wind developments.
30
Marine Energy Action Plan 2010 Executive Summary & Recommendations
2.4 Infrastructure, Supply Chain & Skills
The Marine Energy Action Plan sets out with the following recommendations that:
• although the Electricity Networks Strategy Group (a network industry group cochaired by DECC and Ofgem) concluded in its report in 2009 that no additional
reinforcements would be required on the main transmission system (beyond those
already identified to meet the potential extra demand from wave and tidal), it is
necessary for the relevant stakeholders to continue to outline concerns and to
exchange information relating to grid systems through the existing communications
channels and the Marine Energy Action Plan working groups.
• Government and private sector research programmes (in particular those aimed
at supporting the renewable energy sector managed by the Offshore Renewables
Research Steering Group) should ensure that marine energy is comprehensively
reflected within their research priorities.
• the Ports Study for Offshore Wind (2009) undertaken by DECC and any continuing
work on the requirements for offshore wind as part of this study would also consider
marine energy, to enable the sharing of infrastructure.
• developers outline their requirements for ports infrastructure (including transport
considerations) to the ports associations and related companies operating in this
domain in addition to the Regional Development Agencies and the Devolved
Administrations.
• Port operators consult with wave, tidal stream and tidal range developers
regarding their needs prior to port modification or expansion.
• Government, Devolved Administrations and all relevant stakeholders in the
sector capitalise on opportunities for marine energy by learning from and building
on synergies related to the skills and supply chain for offshore wind.
• Government, Devolved Administrations, developers, other stakeholders
and other sector/environmental groups actively engage in the existing marine,
renewable energy and environmental and infrastructure fora (e.g. Nautical Offshore
Renewable Energy Liaison Forum, Marine Industries Leadership Council) to identify
critical engagement opportunities and ensure that the specific needs/plans of the
marine industry are reflected in their activities/discussions.
• DECC engage with DfT and other relevant departments on development of the
GB National Policy Statement for ports.
• Government, Devolved Administrations and Regional Development Agencies
capitalise on the current skills base already established, notably from the offshore
wind, oil and gas, fisheries, shipping, by continuing to employ a strategic approach to
transfer skills and develop a highly experienced workforce for the emerging industry
(e.g. the Centres of Excellence and Marine Skills Centres as part of initiatives by the
2. Summary of Recommendations
31
south west England RDA and through initiatives in the forthcoming Low Carbon Skills
Consultation led by DECC).
• all relevant stakeholders should provide collective and formalised responses to the
forthcoming Low Carbon Skills Consultation led by DECC.
• DECC engage with relevant departments on the further development of the
forthcoming Low Carbon Skills report.
• technology developers, utilities and other relevant parties share knowledge
and information on vessel requirements to provide a more streamlined process
with regards to vessel availability. It has also been suggested that the sector is
encouraged to look at the opportunities for the reuse of decommissioned vessels.
• manufacturers and relevant supply chain become more aware of the
requirements of the industry, and with the knowledge that it will require some
bespoke equipment, manufacturing facilities and a strong skills base from which
to escalate the industry forward.
• all relevant stakeholders should provide information to higher education careers
advisers, allowing through-flow of an industry relevant work force.
• the TSB continue to promote wave and tidal energy activities through its Knowledge
Transfer Network. This will help to reflect the needs of the members and can focus
on enabling innovation through the networks, which can then result in a greater
number of Knowledge Transfer Partnerships (KTP).
• technology developers use the KTP mechanism to gain knowledge on a variety
of issues including those that they wouldn’t have an in-house capability to address.
• there is seamless support provided from developers and utilities to the present
and forthcoming UK test facilities including EMEC, NaREC, Wave Hub and other
tank testing facilities.
• EMEC, NaREC, Wave Hub and other tank testing facilities ensure that sufficient
support is given to developers and utilities for project delivery at those sites
through tools, advice and device ‘clinic’ support.
• there is continued collaboration between technology developers, EMEC and
manufacturing companies to enable a speedier commoditisation of standard
sector-components which can then be used to establish consistency and to create
a viable cost base.
32
Marine Energy Action Plan 2010 Executive Summary & Recommendations
Aerial view of Port of Liverpool on the Mersey Estuary, where a feasibility study has been undertaken for
a tidal range development
2.5 Tidal Range
As part of the review of Renewables Obligation banding scheduled to commence
in October 2010 the Action Plan recommends that Government and Devolved
Administrations should also take into consideration whether there any emerging tidal
technologies that have not already been captured by the definitions as set out in the
current bands of the Renewables Obligation Order 2009.
The full Strategic Environmental Assessment (SEA) for Wave and Tidal Energy in
English and Welsh waters as part of the UK Offshore Energy 2 SEA that the
Government launched in March 2010 is delivered in a timely manner. The Marine
Energy Action Plan recommends that DECC:
–– treats the development of the Marine elements (including tidal range) of the SEA
as a priority and ensures that it is completed and in place within the expected
Spring 2011 timetable, and
–– ensures that the work undertaken in the SEA relating to environmental monitoring
and effects is fed in to the Action Plan workstream on developing a pragmatic and
proportionate approach to the environmental monitoring of marine energy
deployment.
2. Summary of Recommendations
33
• all relevant stakeholders fully engage in the development of the UK Offshore
Energy 2 Strategic Environmental Assessment to ensure the views of the industry
are fed into the process; and
• Government and Devolved Administrations include the full details and impacts
of tidal range developments in the UK Offshore Energy 2 Strategic Environmental
assessment that is to be carried out, including lessons learned from work carried
out by DECC in relation to the Severn Tidal Power Feasibility Study.
In addition, the Marine Energy Action Plan endorses that subject to a marine
energy SEA for the relevant areas being undertaken The Crown Estate will look at
opportunities for commercial leasing opportunities in England and Wales. In the interim
The Crown Estate will consider demonstration arrays up to 10MW or 20 devices on
a case by case basis. The Crown Estate is initiating a programme of activities relating
to commercial offshore renewable energy leasing in Northern Ireland and Scotland
following the completion of relevant SEAs in these countries.
The Marine Energy Action Plan also recommends that Government and Devolved
Administrations seek to:
• consider the need for further grant funding of novel tidal range technologies in its
upcoming spending review processes; and
• promote collaborative work between Government, Devolved Administrations,
project developers, statutory consultees and other stakeholders to understand
current technologies and methodologies that seek to reduce environmental impacts
of tidal range whilst work on future technologies and methods also continues
to progress.
The Action Plan recommends that DECC, relevant departments and stakeholders
include the needs of the tidal range sector in any relevant initiatives aimed at
addressing skills and supply chain issues in the renewables sector, including the wider
construction and other issues specific to tidal range developments.
The Action Plan should also ensure that the needs of the tidal range sector are fully
integrated in proposals and activities arising from the recommendations in this
document. In particular, those that also apply to tidal range include recommendations
that:
• projects identified by the private sector should have the aim of delivering maximum
affordable energy with acceptable impacts on the environment whilst also clearly
communicating both the costs and benefits arising from the project. This should
allow potential partners, funders and regulatory authorities make more effective
decisions on prioritising involvement in/approval of schemes. Information should
include carbon reduction targets, calculations of carbon abatement and lifecycle
costing in comparison with other forms of energy generation; balancing these
against the cost (e.g. in terms of finance and funding, and environmental impact).
34
Marine Energy Action Plan 2010 Executive Summary & Recommendations
• technology developers ensure future proposals for tidal range energy projects
show their clear economic, social and environmental effects through the fostering
of strong relationships with national, regional and local authorities, and public/private
partnership arrangements. This will ensure that project developers will give due
consideration to all those relevant policies and objectives.
• technology developers and their utility partners where appropriate work together
in the next 6 months to prepare the information which will be necessary for the
scheduled RO review, in order to provide the most accurate information relating
to the technologies to ensure the right level of ROCs is set.
• Government and Devolved Administrations takes into account evidence
suggesting that commercial deployment of marine technologies may not be
economic at current level of support in the scheduled ROC banding review set to
take place in Autumn 2010, while recognising that support levels also need to take
into account the impact on energy consumers.
• All relevant stakeholders should provide information to higher education careers
advisers, allowing through flow of an industry relevant work force.
• Government, Devolved Administrations and Regional Development Agencies
capitalise on the current skills base already established, notably from the offshore
wind, oil and gas, fisheries, shipping, by continuing to employ a strategic approach to
transfer skills and develop a highly experienced workforce for the emerging industry
(e.g. the Centres of Excellence and Marine Skills Centres as part of initiatives by the
South West England RDA, and through initiatives raised in the forthcoming Low
Carbon Skills Consultation led by DECC).
• Developers outline their requirements for ports infrastructure (including transport
considerations) to the ports associations and related companies operating in
this domain in addition to the Regional Development Agencies and Devolved
Administrations.
• Port operators consult with wave, tidal stream and tidal range developers
regarding their needs prior to port modification or expansion.
• DECC engage with DfT and other relevant departments on development of the
national policy statement for ports.
• that the UK Government and Welsh Assembly Government should ensure
that it prepares a National Policy Statement (NPS) for marine energy, or updates the
Renewable Energy NPS as soon as the necessary information is available to develop
a plan or programme for the deployment of marine energy.
• Government, Devolved Administrations and private sector research
programmes (in particular those aimed at supporting the renewable energy sector
managed by the Offshore Renewables Research Steering Group) should ensure that
2. Summary of Recommendations
35
the needs of the tidal range sector are comprehensively reflected within their
research priorities.
• that the Ports Study for Offshore Wind (2009) being undertaken by DECC and any
continuing work on the requirements for offshore wind as part of this study would
also consider marine energy, to enable the sharing of infrastructure when marine
projects are at a stage to fully commercialise.
• that Government, Devolved Administrations and all relevant stakeholders in
the sector capitalise on opportunities for marine to learn from and build on synergies
related to the skills and supply chain for offshore wind.
• Government, developers, other stakeholders and other sector/environmental
groups (e.g. NOREL) actively engage in the existing marine, renewable energy and
environmental fora to identify critical engagement opportunities and ensure that the
specific needs/plans of the marine industry are reflected in their activities/
discussions.
• Government explore with the relevant stakeholders how to create and maintain
a sector-wide sharing of environmental data and information.
36
Marine Energy Action Plan 2010 Executive Summary & Recommendations
3. Next steps &
Further Work
38
Marine Energy Action Plan 2010 Executive Summary & Recommendations
3. Next steps & Further Work
From its inception the Marine Energy Action Plan was seen as the first step in an
ongoing process which will continue to inform and guide the development of the
marine energy sector. The recommendations listed here represent only the initial stage
of this process. It will be necessary for Government and the members of the Marine
Energy Action Plan (see Annex A) continue to assess how all parties are progressing
against the Action Plan recommendations and to continue to revise them in the light
of industry development and events.
The forward process of the Action Plan will include the following:
3.1 Immediate tasks:
DECC along with Action Plan members will continue to compile the findings of this
initial phase of the Action Plan into a standalone document, which will expand on and
provide background to the Action Plan recommendations to form the “Preliminary
Findings Of The Marine Energy Action Plan 2010”.
DECC anticipate releasing this document in a draft, work-in-progress form on
the Marine Energy Action Plan pages of the DECC website in late March 201023. The
findings document should then be completed in conjunction with Marine Energy Action
Plan members and to be available in final form by Summer 2010.
The Marine Energy Action Plan members will need to consider the recommendations
made within this document to produce a “Prioritisation and development timeline” to
determine the timescales within which the recommendations of the Action Plan will
need to be implemented and carried out. This should be mapped against anticipated
milestones to create a critical path for development of the sector.
This task should be carried out during the six months following the publication of the
Marine Energy Action Plan recommendations.
3.2 Ongoing tasks:
Annual review, update and revision of the Marine Energy Action Plan: DECC, in
cooperation with other public sector partners, the private sector and stakeholders
should publish, annually, a review of progress against the recommendations in the
Action Plan. This review will include updates to existing recommendations, proposal of
new recommendations, a summary of progress in the sector throughout the year and
revision of the Action Plan timeline.
23 Marine Action Plan website: 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. Next steps & Further Work
39
The first review will be published by DECC in Spring 2011 and on an annual basis
thereafter.
Other ad hoc and ongoing tasks: Other tasks will be added in response to need arising
in the course of work on the Action Plan and events affecting the development of
the sector.
40
Marine Energy Action Plan 2010 Executive Summary & Recommendations
Annex A:
Members of the
Marine Energy
Action Plan
42
Marine Energy Action Plan 2010 Executive Summary & Recommendations
Members of the Marine Energy Action Plan
Steering Group
Organisation
Aquamarine Power Atlantis Resources Corporation Countryside Council for Wales (CCW)
Department for Business Innovation & Skills Energy Technologies Institute E.on Engineering Ltd Environment Agency HM Treasury International Power Marine Current Turbines Natural England North West RDA Ocean Power Technologies Peel Holdings Pelamis Renewables Advisory Board Marine Group RenewablesUK (formerly British Wind
Energy Association)
Renewable Energy Association Rolls Royce/Tidal Generation Limited Scottish and Southern Energy Scottish Executive Siemens South West RDA The Carbon Trust
The Crown Estate Technology Strategy Board TUC UK Energy Research Centre Welsh Assembly Government Scottish Power Name
Neil Davidson
Mike Smith
Andrew Hill
Janice Munday, Sunethra Mendis
Richard Knight
Dr Tim Forrest
Stephen Oates
Jon Parker
Steve Riley
Peter Fraenkel
Rachel Bathurst
Joe Flanagan
Paul Jordan
Iain Taylor
Max Carcas
Andrew Mill
Oliver Wragg Gaynor Hartnell
Ged Heffernan
Will Steggals
Neal Rafferty
Mike Rolls
Claire Gibson
Matthew Spencer, Stephen Wyatt
Martin Simpson
Derek Allen
Matt Dykes
Henry Jeffrey
Ron Loveland
Mandy Gloyer
Annex A: Members of the Marine Energy Action Plan
43
Marine Energy Action Plan Working Group
Members (including drafting contributors)
Organisation
Associated British Ports (ABP)
ABPmer
AEA
Alstom
Aquamarine Power
Atkins
Atlantic Resource Corporation
AWS Ocean
BAE Systems
Bergensis Capital
British Ports Association
Countryside Council for Wales (CCW)
Checkmate Sea Energy/Anaconda
Centrica Energy
Chamber of Shipping
Crown Estate
Department for Business Innovation & Skills (BIS)
Department for Energy & Climate
Change (DECC)
Department for Food and Environment
(Defra)
Department for Transport (DfT)
Department for Enterprise, Trade & Investment Northern Ireland (DETI)
European Marine Energy Centre (EMEC)
Envirolink North West
Environment Agency
E. ON Engineering Ltd
Energy Technology Institute (ETI)
Frazer Nash Consultancy
Hartley Anderson Ltd
Highland & Islands Enterprise
HM Treasury
Institute of Marine Engineering, Science
& Technology (IMaREST)
International Power
IT Power
Name
Chris Willow, Alex Pepper, Alys Mitchell
Bill Cooper
James Craig
Mike Griffiths, Andy Compton
Sian McGrath
Janette Shaw
Mike Smith, Ed Rollings,
Francesca Wiggins
Simon Grey
Chris Skinner, Geoff Butler
Frederick Mowinckle
David Whitehead
Andrew Hill, John Hamer, Kate Smith,
Sarah Wood
Des Crampton
Nick Barnett
Robert Ashdown
Danielle Lane, David Tudor
Patricia Judd, Peter Joyce, Alesha de-Freitas, Ann-Therese Farmer
Trevor Raggatt, Kate Payne, Alan Morgan
Sharon Wort, Amy Holmes
Robert Davies, Colin Morris
Barbara Swann
Neil Kermode
Ian Sibbick
Stephen Oates, Andrew Coleman,
Antonia Scarr
Marco Marijewycz, Ralph Chamberlain,
Amaan Lefeyette
Richard Knight
David McNaught
John Hartley
Eann Sinclair
Jon Parker, Nicolas Garcia
Morleymor Fisher
Joe Hulm
Jamie O’ Nians
44
Marine Energy Action Plan 2010 Executive Summary & Recommendations
Marine Current Turbines
New and Renewable Energy Centre
(NaREC) Natural England
Natural Environment Research Council
(NERC)
NWDA
Ocean Electric Power
Oceanlinx
Ocean Power Technology
Orecon
Peel Holdings
Pelamis
Pembrokeshire Coastal Forum
Peninsula Research Institute for Marine
Renewable Energy (PRiMARE)
Pulse Tidal
QinetiQ
Redfield Consulting
Renewable Energy Association (REA)
Renewables UK (formerly BWEA)
Rolls Royce/ Tidal Generation Ltd
RPS Planning & Development
RWE nPower
Scottish and Southern
Scottish Enterprise
Scottish Government
Scottish Power
Scottish Renewables
Siemens
Solway Energy Gateway
South West RDA/Wave Hub
Strathclyde University
Subsea UK
The Carbon Trust
Technology Strategy Board (TSB)
Tidal Energy Ltd
UK Major Ports
UK Energy Research Centres (UKERC)/ University of Edinburgh
University of Edinburgh
Welsh Assembly Government Wildlife & Countryside Link
Peter Fraenkel
Andrew Mill, Jamie Grimwade, Stephen Wilson
Adrian Jowitt, Rachel Bathurst, Victoria Copley
Sasha Leigh
Liam Fisher
Chris Bale
Nathan Faulks
Paul Jordan, Stuart Bower
David Crisp
Iain Taylor
Max Carcas
David Jones, Tonia Forsyth
Deborah Greaves
Bob Smith, Howard Nimmo, Marc Paish
Mark Roberts
John Aldersey-Williams
Gaynor Hartnell, Stephanie Merry
Oliver Wragg
Ged Heffernan
John Stevenson
Paul Catterall, Bill Langley
Robin Burnett, Will Steggals, John Thouless
Murray Bainbridge
Neal Rafferty, Alex Reid
Mandy Gloyer, Alan Mortimer
Morna Cannon
Ed Brady, Michael Rolls
Brian Dawes
Nick Harrington, Jonny Boston, Claire Gibson
Alan Robertson
Alistair Birnie
Stephen Wyatt
Filomena La Porta, Derek Allen
Martin Murphy
Richard Bird
Henry Jeffery
Stephen Salter
Ron Loveland, Alun James, Michael Cummings, Stuart Anderson
Joanna Butler
Annex B:
Economics of
Wave and Tidal
Energy
46
Marine Energy Action Plan 2010 Executive Summary & Recommendations
Economics of Wave and Tidal
Energy
DECC and the Scottish Government have commissioned Black & Veatch and Ernst &
Young to collect data on the current generation costs of marine technologies and to
model the development of these technologies from now to 2050. There is a very large
amount of uncertainty surrounding such projections which go so far out into the future,
and the results presented here should be regarded as illustrative.
The graphs below show the falls in levelised generation costs over time as modelled by
Ernst & Young, assuming mid-level deployment and mid-level learning rate
assumptions. The percentages shown – 14%, 12%, 10%, 9%, 8% – are the discount
rate used, representing the assumed required rates of return (hurdle rates). These are
post-tax real rates of return; corresponding pre-tax required rates of return would be
higher.
Wave Energy
The fall in levelised generation costs for wave energy is illustrated in Figure 1, indicating
a reduction in cost of £466 to £653 per MWh for pre-demonstration projects down to
£338 to £471 per MWh for demonstration projects, all the way down to £71 to £105
per MWh in 2050. These ranges are based on low, medium and high initial costs which
learning rates are then applied to from the point of the first commercial projects. They
therefore do not cover all of the uncertainty surrounding future costs, for which the
error bands would be much larger. In particular, they do not reflect the low/high
deployment scenarios nor the low/high learning rate assumptions.
Figure 1
Wave levelised costs through time
700
600
MWh/£
500
400
300
551
403
200
214
100
0
Predemonstration
14%
Demonstration
12%
2020
10%
118
86
2035
9%
2050
8%
Source: Ernst & Young. Note demonstration costs are a weighted average of nearshore and offshore wave
data which fall in different years.
Annex B: Economics of Wave and Tidal Energy
47
Tidal Stream
Tidal stream shallow costs, like wave, are estimated to fall greatly through time from
£308 to £504 per MWh at pre-demonstration, through £144 to £213 per MWh at
demonstration, eventually down to £100 to £150 per MWh in 2050 (See Figures 2 and
3). Similarly tidal steam deep projects are estimated to fall from £456 to £633 per MWh
at pre-demonstration, through £210 to £301 per MWh at demonstration, eventually
down to £74 to £117 per MWh in 2050. With reference to Figures 2 and 3 it is
envisaged that the initial deployment largely to occur in shallow waters (<40-50m).
Exploitation of deeper tidal stream sites would only follow-on later.
Figure 2
Tidal stream shallow levelised costs through time
600
MWh/£
500
400
300
200
452
100
0
Predemonstration
14%
179
173
150
124
Demonstration
12%
2020
10%
2035
9%
2050
8%
115
92
2035
9%
2050
8%
Source: Ernst &Young
Figure 3
Tidal stream deep levelised costs through time
700
600
MWh/£
500
400
300
539
200
247
100
0
Predemonstration
14%
Source: Ernst &Young
Demonstration
12%
203
2020
10%
48
Marine Energy Action Plan 2010 Executive Summary & Recommendations
Tidal Range
Tidal range is assumed to be a mature technology, and hence the levelised costs do not
change much through time (see Figure 4), except for the artificial changing of the
required rate of return, which may not fall over time for this technology. The levelised
costs range from £205 to £349 per MWh in 2020, according to the low and high cost
assumptions. However, a new generation of large low head turbines could in many tidal
range locations considerably increase the number of effective turbines able to be
installed in a structure and thus decrease significantly the electricity production costs,
as well as minimising local environmental effects.
Figure 4
Non-Severn (high-head turbine) tidal range levelised costs through time
400
350
MWh/£
300
250
200
150
279
100
258
229
50
0
Source: Ernst &Young
2020
10%
2035
9%
2050
8%
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