Operational expenditure costs for wave energy projects and impacts on financial returns

OʼConnor, Michael; Lewis, Tony; Dalton, Gordon

doi:10.1016/j.renene.2012.08.059

Cited by 66 publications

(52 citation statements)

References 8 publications

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“…Firstly, an explanation of the device and the rating adaptation for the power matrices is given. Secondly, the economic tool used for this analysis is presented following O'Connor et al [6] and, finally, the sites examined in this study are described.…”

Section: Methodsmentioning

confidence: 99%

“…Secondly, the OPEX was calculated as a percentage of the CAPEX following [6,7]. However, this approach is inaccurate as it relies on the CAPEX calculation and does not take into account the number of devices per MW, which is a key parameter for the sizing study.…”

Section: Sensitivity Analysis: Capex and Opexmentioning

confidence: 99%

“…Moreover, some authors were found to account for risk in an LCOE analysis by considering the probability of a return on the investment for different sized wave farms through calculation of the Value at Risk (VaR) and Conditional Value at Risk (CVaR) [5]. Also, O'Connor et al [6] studied the OPEX costs for wave energy projects, and Guanche et al [7] This paper will present a case study of the techno-economic performance of an inherently resonant point absorber wave energy converter with several ratings. Performance will be tested at various locations in order to check the location dependency of the rating decision.…”

Section: Introductionmentioning

confidence: 99%

“…O'Connor et al [6] showed different figures of OPEX calculated as a percentage of CAPEX. In this case, following Guanche et al [7], it was assumed that the initial OPEX was 8% of CAPEX.…”

mentioning

confidence: 99%

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Techno-Economic Related Metrics for a Wave Energy Converters Feasibility Assessment

et al. 2016

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Abstract:When designing "multi-MW arrays" of Wave Energy Converters (WECs), having a low number of converters with high individual power ratings can be beneficial as the Operation and Maintenance (O&M) costs may be reduced. However, having converters of small dimensions or small power ratings could also be beneficial, as suggested by previous works, due to a reduction in material costs as compared to power production, and the use of small, inexpensive vessels. In this work, a case study investigating the optimum size of WEC for a 20 MW array is performed. Analysis is carried out based on the CorPower Ocean technology. In this case study, firstly a Levelized Cost of Energy (LCOE) model is created. This model incorporates the latest Capital Expenditure (CAPEX) estimates for CorPower Ocean's 250 kW prototype. Using this techno-economic model, several sizes/ratings of WEC are tested for use in a 20 MW array. Operational Expenditure (OPEX) is calculated using two different calculation approaches in order to check its influence on final indicators. OPEX is firstly calculated as a percentage of CAPEX, as shown in previous works, and secondly using a failure-repair model, taking into account individual failures of WECs in the array. Size/rating analysis is carried out for several European locations in order to establish any dependence between site location and optimal WEC size/rating. Several metrics for techno-economic assessment of marine energy converters, other than LCOE, are compared in this work. A comparison of several devices with each these metrics is performed within this study.

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Section: Methodsmentioning

confidence: 99%

Section: Sensitivity Analysis: Capex and Opexmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…O'Connor et al [6] showed different figures of OPEX calculated as a percentage of CAPEX. In this case, following Guanche et al [7], it was assumed that the initial OPEX was 8% of CAPEX.…”

mentioning

confidence: 99%

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Techno-Economic Related Metrics for a Wave Energy Converters Feasibility Assessment

et al. 2016

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“…The reason can be mostly attributed to the high production costs, compared to other renewable energies technologies, as result of the large environmental forces to which WECs are exposed. Several studies have been carried out regarding the economic analysis of these devices, which is one of the main fields of research in marine renewable energy (e.g., [13][14][15][16][17][18][19][20][21][22][23]). Both the social acceptance of a WEC and the economic appeal for investors and utility providers remain heavily dependent on costs vs. payback analysis, that means competitively priced electricity supplies and reliability.…”

Section: Introductionmentioning

confidence: 99%

Economic Assessment of Overtopping BReakwater for Energy Conversion (OBREC): A Case Study in Western Australia

et al. 2016

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This paper constructs an optimal configuration assessment, in terms of the financial returns, of the Overtopping BReakwater for wave Energy Conversion (OBREC). This technology represents a hybrid wave energy harvester, totally embedded in traditional rubble mound breakwaters. Nine case studies along the southern coast of Western Australia have been analysed. The technique provides tips on how to estimate the quality of the investments, for benchmarking with different turbine strategy layouts and overlapping with the costs of traditional rubble mound breakwaters. Analyses of the offshore and nearshore wave climate have been studied by a high resolution coastal propagation model, forced with wave data from the European Centre for Medium-Range Weather Forecasts (ECMWF). Inshore wave conditions have been used to quantify the exploitable resources. It has been demonstrated that the optimal investment strategy is nonlinearly dependent on potential electricity production due to outer technical constraints. The work emphasizes the importance of integrating energy production predictions in an economic decision framework for prioritizing adaptation investments.

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The Economics of Wave and Tidal Energy

Iglesias

Astariz

Vazquez

2018

Wave and Tidal Energy

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Operational expenditure costs for wave energy projects and impacts on financial returns

Abstract: Access to the full text of the published version may require a subscription. Rights

Cited by 66 publications

References 8 publications

Techno-Economic Related Metrics for a Wave Energy Converters Feasibility Assessment

Techno-Economic Related Metrics for a Wave Energy Converters Feasibility Assessment

Economic Assessment of Overtopping BReakwater for Energy Conversion (OBREC): A Case Study in Western Australia

The Economics of Wave and Tidal Energy

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