Marine Industries Global Market Analysis - Marine Institute

MARINE INDUSTRIES GLOBAL MARKET ANALYSIS
101
18 Marine Renewable Energy
1999–03 2004 2005–09
Irish Market €M 46 – 255
UK Market €M 108 109 3,356
Europe Market €M 738 121 11103
World Market €M 741 128 12,649
Definition – total capital expenditure on wind, wave and tidal current installations.
18.1 INTRODUCTION
This sector is made up of expenditure on wind, wave and tidal installations.
Currently a very small industry, the forecast for growth is huge.
Figure 18.1: Marine Renewable Energy –
World Market
18.2 WORLD MARKET
Investment in offshore renewable energy is now growing strongly, but from a very
small base. From €128 million capital investment in 2004, expenditure is expected to
exceed €5.6 billion by 2009, plus operating expenditure. Some 85% of forecast
expenditure in the period 2005 to 2009 is expected to be in Western Europe with
North America forming the second largest segment at 12%.
The main market driver is the political response to global warming.The UK, for
example, wants to generate 10% of its electricity from renewables by 2010 and 20%
by 2020.The most obvious solution is to increase the use of windpower. However,
the best European onshore locations are becoming used up, there are considerable
local objections to the visual impact of wind turbines and the best (windiest) sites
often have no nearby access to the main transmission grid.
The industry is therefore beginning to move offshore where turbines are out of
sight and have a better wind environment.There have been relatively few installations
to date but major growth is forecast.We are at the beginnings of an important
new industry.
The other developing technologies are wave and tidal current power.These are
at a much earlier stage of commercial take-up and are forecast to form only 1% of
the capital investment in offshore renewable energy by 2009. However, they have
considerable long-term potential
18.3 EUROPEAN MARKET
Over the next five years, Douglas-Westwood forecast that Western Europe will
account for 88% of global expenditure on marine renewable energy. Under present
plans, Ireland would continue to be a very small producer with its share reducing due
to strong growth in other countries’ activities. However, the country’s potential as a
location for offshore renewable energy projects is considerable.
Source: Douglas–Westwood
Table 18.1: Marine Renewable Energy – Totals
1999–03 2004 2005–09
Africa 0 0 0
Asia 1 0 20
Australasia 0 0 6
E Europe/FSU 0 0 50
Latin America 0 0 0
Middle East 0 0 0
North America 2 7 1470
Western Europe 738 121 11103
TOTAL ($M) 741 128 12649
Source: Douglas-Westwood
Figure 18.2: Marine Renewable Energy –
Regional Segmentation 2005–2009
Source: Douglas–Westwood