Where the Tidal Industry Is Now and Where It Will Be in 2013 a report by Gouri Kumar Senior Analyst, Douglas-Westwood
The tidal energy sector is yet to develop to a similar level of maturity as other marine renewable technologies. While the wave energy sector has grown steadily and the offshore wind sector has flourished, the tidal sector has struggled to progress. The recession over the past 18 months has further compounded the situation, with venture capital and private equity having virtually dried up. Despite this, there have been some developments in the UK, which is currently the most attractive market, and other parts of the world, such as the US and Sweden, indicating that the downturn has not stopped the sector in its tracks completely. In this article, the current state of the industry and what to expect in the coming years is examined.
Current Developments
The UK has been the most supportive and nurturing market in Europe when it comes to tidal energy market development. Progress has been driven by the regulatory regime coupled with the available technological expertise.
The marine energy sector, including tidal energy, is at a point where prototypes need to enter the commercialisation stage. For this to happen, both private and public investment needs to be made. The industry feels that the financial support at the moment is insufficient.
There is currently some investment being made by the government in terms of grants. In July 2010, the Technology Strategy Board and the Engineering and Physical Sciences Research Council announced £7million to support marine energy devices, including five tidal energy devices. Marine Current Turbines, Aviation Enterprises, Fred Olsen, Green-Tide Turbines and Tidal Generation were the tidal energy funding recipients.
England
Marine Current Turbines, in addition to the grant received in July 2010, has won the bid to install 100MW in the Crown Estate’s tender in the Pentland Firth. It has received cash injections from Siemens, the Carbon Trust and other private investors as well as from the Marine Renewables Proving Fund, which is managed by the Carbon Trust. It is the only company to have installed a tidal turbine that is generating electricity. Atlantis Resources Corporation partnering with Statkraft, based in Norway, is planning to bid in the second round of the Crown Estate’s tender.
Sheffield-based Pulse Tidal has started an environmental study to apply to Marine Scotland to install a device in the waters off the Isle of Skye
Gouri Kumar has over four years of experience in the renewable energy sector, having been involved in both published market studies and bespoke commercial reviews at Douglas-Westwood and previously at Frost & Sullivan. She has worked with leading global companies including wind turbine manufacturers, component suppliers and financial clients.
E:
gouri.kumar@dw-1.com
capable of generating electricity from a 1.2MW device from 2012. One of the most controversial tidal energy projects currently under way is the Severn barrage tidal energy project in the Severn Estuary in south- west England. This is currently in the second stage of its feasibility phase with the UK government having shortlisted five proposals out of 10. The debate surrounding the project questions the need for it at all, particularly when considering costs versus benefits, notwithstanding the potential environmental impact.
Scotland
Within the UK, Scotland has taken the initiative to incubate the marine energy sector. It is offering three Renewables Obligation Certificates (ROCs) to the tidal energy sector compared with two ROCs offered by England. Scotland’s Pentland Firth area offers an enormous potential resource to prospective developers, but also brings challenges in the form of grid connection and difficult seabed conditions.
In early July 2010, Scotland, through the Wave and Tidal Energy Research, Development and Demonstration Support (WATERS) fund offered £13million to five marine energy device developers including £1.85million to OpenHydro and £560,000 to Ocean Flow Energy.
Despite this funding, there has been a delay in awarding the £10million Saltire prize offered by the Scottish government from 2015 to 2017. The prize will be given to the company that can develop a commercial wave or tidal energy device ‘that achieves the greatest volume of electrical output over the set minimum hurdle of 100GWh over a continuous two-year period using only the power of the sea’.
Although there are companies, such as Marine Current Turbines, OpenHydro and Atlantis, that have been acyive in the industry for a few years, the sector is seeing new entrants.
One recent example is Nautricity. A spin-out from Strathclyde University, Nautricity is the most recent company to announce plans to design, build and test a new tidal energy concept – a contra- rotating turbine. The company is in early stages of being set up and is also arranging for funding. The uniqueness of this contra- rotating turbine is that it does not require fixed foundations, only a cable tying it to the sea bed, because its two rotors rotate in opposite directions. This distinctive design makes it more stable. Therefore, it can be placed at lower depths, even where the current is very strong. Due to the lack of foundations, the costs are substantially reduced – by 60% – according to the developers. A small version has been prototyped, with funding to finance a larger device that can be tested.
Other important developments have been taking place among the incumbent players. Orkney-based tidal energy device developer
118 © TOUCH BRIEFINGS 2010
Marine
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124