Marine Industries Global Market Analysis - Marine Institute

104 MARINE INDUSTRIES GLOBAL MARKET ANALYSIS
‘Tidal’ is electricity produced as a direct consequence of the large-scale movement of
bodies of water due to the ebb and flow of the tides.
‘Tidal Current Stream’ is electricity produced through the regular flow of currents.
Whilst tidal action may affect the direction and intensity of a current stream its
motion is not directly dependent upon it. Operating examples include Marine
Current Turbine’s ‘seaflow’ project off the UK, which was the first tidal current stream
turbine to come online.
Table 18.2: Electricity Generation Costs
Energy Type
€Cents/kWh
Onshore Wind 5.3
Offshore Wind 7.9
Wave/Tidal 9.5
Nuclear Fission 3.3
Coal 3.6 – 4.6
Gas 3.2 – 4.5
Source: The Royal Academy of Engineers
March 2004
18.7 THE LONG-TERM – 2010 ONWARDS
The major challenge faced by offshore renewable energy is in reducing its costs to be
comparable with ‘conventional’ power generation from gas and coal.
The costs in table 18.2 include:
• Capital cost, fuel and operational cost
• Transmission and storage of gas.
Standby generation is also needed for onshore/offshore wind for periods of low wind
and if included this would add approx 1.7 cents/kWh.
Other studies by OXERA, for the UK government’s Renewables Innovation Review,
show that prices for onshore wind could drop to 3.9 cents/kWh by 2010.
Most of the new power generation capacity installed in Western Europe and many
other countries in the past 20 years is fuelled by gas. However, the UK (and the US)
are now facing gas supply shortages and although new foreign supplies can be sourced
these will be at a higher cost.
In addition, by the middle of the next decade it is likely that shortages of oil, leading
to real price increases, will boost demand for gas and result in further gas price
increases.We believe that the overall result of this will be to improve the competitive
position of renewable energy.
There is also potential for the drive for development of renewable energy resources to
change progressively from green politics to security of supply.