Evaluation and comparison of the levelized cost of tidal, wave, and offshore wind energy

Abstract

In the current context of environmental degradation and depletion of fossil fuels, marine energy has emerged as an alternative to traditional energy resources. However, being in an initial step of development, extracting energy from the ocean is often regarded as difficult and uneconomical. The existing models for assessing marine energy costs are often oversimplified, leading to uncertainties that may hold investors back and slow down the market penetration of this renewable. Therefore, an accurate prediction of marine energy costs is fundamental to drawing conclusions about its competitiveness. Among the different possibilities of marine energy, this paper focuses on the economic analysis of tidal, wave, and offshore wind energy. The individual costs involved in the construction of these offshore energy parks and operation and maintenance tasks during their lifetime are determined. With this information, the levelized cost (€/MW h) is calculated for offshore wind, wave and tidal energy (€165/MW h, €225/MW h and €190/MW h, respectively). It is found that these renewables have a higher energy cost than traditional energy sources; however, considering factors such as the learning rate or externalities enhances their competitiveness. In the second part of this paper, combined energy systems, such as hybrid converters, are presented as a future solution to boost the development of marine energies. The synergies between these renewables are outlined, as well as the cost savings that can be achieved through diversified energy systems.

Marine Renewable Energy in the Mediterranean Sea: Status and Perspectives

“…Moreover, the power transmission options and specific problems for MRE converter farms (e.g., the multitude of the subsea components operating in harsh environments) have been analytically discussed in [56] along with some optimization schemes considering as a test case the Pelamis P1 device; see also [45,57]. The status of wave energy progress in Europe has been described in [58], while an overview of the wave energy economics can be found in [59,60]. An account of multiple aspects as regards wave energy, including wave energy resource, economics, and technology of WECs, has been provided in [40].…”

“…In [236], the increase of the load factor and material efficiency, and the decrease of decommissioning costs have been suggested, the author in [237] has concluded that the price of offshore wind power expansion is reasonable and that the support scheme with incentives and enforcement of efficiency improvement proved to be successful, while in [238], scenarios regarding cost reduction of renewable energy in the EU scale have been presented and discussed. The levelized costs of tidal, wave, and offshore wind energy have been evaluated and compared in [60].…”

Selecting optimum locations for co-located wave and wind energy farms. Part II: A case study

“…The agreement is due to enter into force in 2020. In this context, marine energy [1] emerges as one of the most promising alternatives to fossil fuels due to its substantial potential for electricity production [2], not least through the combination of various renewables in the same marine space [3], which can significantly enhance marine energy competitiveness [4]. Co-located projects are a solution to simultaneously tackle two major challenges: reducing technology costs [5] and achieving a more sustainable use of natural resources [6].…”

Preface to Special Topic: Marine Renewable Energy

“…The LCoE is the ratio of total lifetime expenses versus total expected outcomes, expressed in terms of the present equivalent value (including discount rates), representing the cost at which electricity must be generated to reach the breakeven point over the lifetime of the project. Astariz et al 10 reported that the LCoE values of wave (325e/ MW h), tidal (190e/MW h), and offshore wind (165e/MW h) energy are approximately three to five times more than those of conventional energy sources, which highlights the importance of increasing public funding to attract investors either in the R&D stages of the technologies or through feed-in tariffs and subsidies. Those high LCoE values are expected to decrease significantly in the future as a result of investment in R&D, which will continuously advance the technology toward commercial viability.…”