Ocean Power

Ocean power technologies ⁱ represent the smallest share of the renewable energy market, although there is a vast global resource. ¹ Deployments slowed in 2022, following the large increase in 2021 in the aftermath of the COVID-19 pandemic. ² A total of 1.9 MW was deployed in 2022, down from 4.6 MW in 2021. ³ The estimated operating installed capacity in 2022 was 514 MW. ⁴

Two tidal range systems – the 240 MW La Rance station in France and the 254 MW Sihwa plant in the Republic of Korea – account for the majority of this capacity. Potential locations are limited and large-scale environmental engineering is required; thus, few proposals have been advanced to expand the use of this type of system.

Tidal stream devices and wave energy converters are the focus of development efforts. Advancements have been concentrated largely in Europe, although revenue support and ambitious research and development (R&D) programmes in other regions have spurred increased development and deployment, particularly in Canada, the United States and China. ⁵

Tidal stream devices are approaching maturity, and pre-commercial projects are under way. Around 41 MW of tidal stream capacity has been deployed since 2010. ⁶ Most projects targeting industrial-scale production are based on horizontal-axis turbines mounted on the sea floor or on a floating platform. ⁷ These devices have demonstrated considerable reliability, and total generation surpassed 80 GWh as of the end of 2022. ⁸

Wave power devices are yet to see the same level of design convergence. Developers are generally aiming to tap into utility-scale electricity markets with devices above 100 kW or to fulfil specialised applications with devices below 50 kW. ⁹ Around 25 MW of wave power has been deployed since 2010. ¹⁰

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Ocean Power Industry

In 2022, the global ocean power sector continued its journey to commercialisation, with significant new funding announcements and the continuance of successful flagship projects to prove their reliability. Most deployments are pilot projects, with around 60 active teams testing their devices in the open sea. ¹¹ A few developers have advanced beyond small-scale pilots to higher technology readiness levels and a pipeline of commercial-scale deployments.

Five tidal stream devices totalling 2.7 MW were successfully deployed in 2022. ¹²

In China, an additional 1.6 MW turbine was deployed and connected to the grid at LHD's tidal current energy demonstration project at Zhoushan in Zhejiang, bringing the project's total capacity to 3.3 MW. ¹³ The demonstration project has now been operating continuously for more than five years. At CHN Energy's Jiangxia Tidal Power Station (a 4.1 MW tidal barrage commissioned in 1981), a complementary 100 MW solar PV plant was built at the station's reservoir. ¹⁴

Minesto deployed a second 100 kW device in the Faroe Islands, successfully exporting electricity to the grid. ¹⁵ The unique device operates on similar principles to a kite flying in the wind, using the hydrodynamic lift force generated by the underwater current to move a tethered kite that drives a generator. Additional infrastructure has now been installed to connect the two devices and to operate both systems in an array. Minesto devised a comprehensive plan for building out large-scale tidal power arrays in the Faroe Islands, identifying and verifying four additional sites that could meet 40% of the islands' demand. ¹⁶

Kyuden Mirai Energy Ltd. deployed SIMEC Atlantis Energy's 500 kW tidal current generator in Nagasaki Prefecture, Japan, as part of a Ministry of the Environment project to promote tidal power. ¹⁷

In the Republic of Korea, the 80 kW Uldolmok Tidal Power Pilot Plant was deployed at an open-sea test site. ¹⁸ The plant generated close to 9 megawatt-hours (MWh) of electricity during its eight-month test deployment, for which the Korea Energy Agency awarded renewable energy certificates. ¹⁹

In France, Sabella redeployed its 1 MW bottom-fixed tidal turbine in the Fromveur passage in Brittany. ²⁰ The deployment is part of the PHARES project, which aims to combine wind, tidal, and solar energy, as well as storage, to provide the off-grid Ushant Island with most of its electricity needs. ²¹ Sabella also successfully connected a small electrolyser to the turbine for green hydrogen production.

Orbital Marine Power continued testing its O2 turbine at the European Marine Energy Centre (EMEC) in Orkney, Scotland. The company secured 7.2 MW in Contracts for Difference ⁱⁱ (CfDs) as well as new investment from the Scottish National Investment Bank and individuals via the Abundance Investment platform. ²²

Longstanding leader MeyGen also saw success in the new CfD programme, agreeing to add 28 MW of capacity by 2027. ²³ This would effectively make MeyGen the world's first commercial-scale tidal array.

Nova Innovation manufactured and shipped three 100 kW direct-drive turbines: two for deployment in Bluemull Sound, Shetland; and one for deployment at the Nova Tidal Array in Petit Passage, Canada. ²⁴ The company is also on track to deploy a 50 kW demonstrator turbine and has undertaken a feasibility study for a 7 MW tidal array in the Larantuka Strait of Indonesia. ²⁵

For wave power, six additions occurred in 2022, totalling 165 kW in capacity.

In Israel, Eco Wave Power was able to deploy the country's first grid-connected wave power project, an attenuator device with a capacity of 100 kW, thanks to a combination of public and private support, including feed-in tariffs. ²⁶

In China, Hann Ocean deployed its 15 kW wave rotor device at Shengsi island. ²⁷ The Wanshan 1 MW Wave Energy Demonstration Project successfully tested two 500 kW devices in open-sea trials in Guangdong Province, where the units withstood several typhoons. ²⁸ The project is scheduled for demonstration operation in 2023.

In France, a quarter-scale prototype of a wave energy converter specifically designed to be integrated into dyke infrastructure, was successfully installed at the port of Sainte Anne du Portzic. ²⁹ The prototype was undergoing testing, which was expected to conclude by March 2023, with the eventual device targeting a capacity of 800 kW. ³⁰

At the EMEC in Scotland, AWS Ocean Energy reported positive results from a test deployment of its Waveswing device. ³¹ The converter achieved average power of more than 10 kW and peak power of 80 kW under moderate wave conditions. ³² In Belgium, EXOWAVE completed the demonstration of its 3.5 kW wave-to-water plant at the Blue Accelerator test site in Oostende. ³³

In the Republic of Korea, a demonstration wave energy converter was constructed and underwent performance evaluations as part of a government-funded R&D project to develop a 30 kW wave energy converter suitable for breakwaters in remote islands. ³⁴

The 296 kW Mutriku Wave Power Plant in Basque Country, Spain is approaching a milestone of 3 GWh of production since being connected to the grid in July 2011. ³⁵ The facility, built into a breakwater, has now been integrated into the testing infrastructure of the Biscay Marine Energy Platform (BiMEP) and will be available for trialling new designs of key components, such as air turbines, electrical generators and control systems. ³⁶

Development of other ocean power technologies, such as ocean thermal energy conversion (OTEC), remains slow, and only a handful of pilot projects have been launched. ³⁷

Saga University in Malaysia and other research institutions are conducting ongoing research on a hybrid system of OTEC and desalination. ³⁸ The research includes the development of a 3 kW hybrid OTEC experimental system that will be installed in Malaysia in 2023 to initiate further research. ³⁹

Ocean power is not yet competitive in utility markets due to the need for significant cost reductions and further technological advancements, particularly for wave power. The sector remains highly dependent on public funding to leverage private investment and is yet to receive clear market signals to encourage the final steps towards commercialisation. ⁴⁰ Dedicated revenue support is essential to achieve predictable returns and to attract private investors until the industry reaches a higher level of maturity. ⁴¹

A 2018 European Commission implementation plan estimated that EUR 1.2 billion (USD 1.5 billion) in funding was needed by 2030 to commercialise ocean power technologies in Europe, requiring equal input from private sources, national and regional programmes, and EU funds. ⁴² In total, an estimated EUR 6 billion (USD 7.4 billion) has been invested in ocean power projects worldwide, of which 75% was private finance. ⁴³ In 2022, the EU announced a funding budget of EUR 40 million (USD 42.7 million) for demonstration of tidal arrays under the Horizon Europe framework, with a similar call for wave power in 2023. ⁴⁴

The UK government's CfD scheme allocated 41 MW to tidal stream technologies for the first time in 2021, which will provide GBP 10 million (USD 12.1 million). ⁴⁵ Tidal power projects from Orbital Marine Power, Simec Atlantis Energy and Magallanes Renovables were awarded contracts. ⁴⁶ In Canada, the government announced a refundable 30% investment tax credit that will cover tidal, wave and river current technology.

In 2022, EUR 16 million (USD 17.1 million) was provided through a range of private investment pathways. ⁴⁷ SeaQurrent received EUR 4.8 million (USD 5.1 million) from both existing and new shareholders; Orbital Marine Power secured EUR 4.5 million (USD 4.8 million) through the Abundance Investment platform; Sabella raised EUR 2.5 million (USD 2.6 million) through bond issues; QED Naval received EUR 1.7 million (USD 1.8 million) for the construction of a demonstrator platform; Mocean Energy secured EUR 873,000 (USD 932,000) in equity funding from existing funders to advance the design of the next generation of its wave power device; and Wavepiston raised EUR 600,000 (USD 640,000) from existing shareholders to finalise the installation of its full-scale system in 2023. ⁴⁸

The EU committed USD 42.7 million for demonstrating tidal arrays.

Deploying ocean power at scale also will require streamlined consenting processes. ⁴⁹ Uncertainty regarding environmental interactions has often led regulators to require significant data collection and strict environmental impact assessments, which can be costly and threaten the financial viability of projects and developers. ⁵⁰ Current scientific knowledge suggests that the deployment of a single device poses little risk to the marine environment, although the impacts of multi-device arrays are not well understood. This calls for an “adaptive management” approach that responds to new information over time, supported by more long-term data and greater knowledge sharing across projects. ⁵¹