MRIA, February 2013 ESB Ocean Energy Projects Opportunities in an All-Islands Market John Fitzgerald ESB Ocean Energy
Developing new lines of business for ESB and Ireland 200M Cleantech Fund Home Energy Services Smart Metering Wind Energy Ocean Energy
Offshore Renewables in an All Islands Market Current Best New Entrant Renewable: Onshore Wind UK O/Wind Operational 2.6 GW Operational ~7GW planning / approved Future Offshore Options: UK O/Wind Options to R3 ~ 50 GW Wave Resource Regions Tidal Resource Regions => Wave and Tidal options must be at least as commercially attractive as future offshore wind options
Offshore Wind Reference Costs 130 ( 160) per MWh by 2020 Renewable UK Forecasts of Future Costs and Benefits, 2011 Capital Costs: CAPEX: 3.2m (~ 4.0m) /MW Operational Assumptions: OPEX: ~ 2.5% of CAPEX / year Capacity Factors 40%
Capacity Factor ESB Cost & Performance Envelopes CAPEX m /MW Annual OPEX as % of CAPEX 1.0% 2.5% 4.0% 5.5% 10% 1.17 1.04 0.93 0.85 20% 2.33 2.07 1.87 1.70 30% 3.50 3.11 2.80 2.55 40% 4.67 4.15 3.73 3.39 50% 5.83 5.19 4.67 4.24 60% 7.00 6.22 5.60 5.09 to yield 10% IRR for a 25 year project life where a 160.00 /MWh is payable Future Offshore Wind => Early Ocean Energy Projects will cost more.
m/mw m/mw 16 Bridging the Gap ( /MW installed) 14 12 10 8 6 4 2 Single Device Demo Phase 1 Pre-Commercial Arrays Grant Support & Hi Tariff Support Phase 2 Small Commercial Arrays Transition Tariff Support 0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Indicative Timeline Phase 3 Large Commercial Arrays Enduring Tariff Support 5-10 MW 25-50 MW >50 MW => International Collaboration Required.
Wave Energy Project Cost Breakdown Project Development and Balance of Plant Costs likely to track future offshore wind: Electrical Export, 15% Converter, 50% Installation, 16% Moorings, 15% Development, 4% => Can the converter be as cost effective also?
Can the cost gap be bridged? Renewable Resource Power Density (W / m 2 ) Wind (input wind at 12m/s, the typical rated velocity of an offshore wind turbine) Tidal (input water current at 2.4m/s, the typical rated velocity of a tidal turbine) Wave (input seastate H s =6m, T z =8s, the typical rated sea state for wave energy converters) 1,100 W/m 2 7,000 W/m 2 9,400 W/m 2 (average in upper 10m of sea) Yes, marine renewables can compete, with: the right conversion technology Bankable reliability and performance (TRL9) A bridging market to economies of scale
Ireland s Opportunity 1. Long Term: RES & Marine Services in an All Islands Market 2. Medium Term: Technology and Supply Chain Development Ireland has advantages in the medium term: Grid Access for Pre-Commercial Phase 1&2 projects World-leading Ocean Energy Resource. Irish Supply Chain and R&D capabilities internationally recognised. Possibility to leverage significant EU R&D funding International collaboration / investment in services & technology. NER 300
m/mw WestWave Project Phase 1 m/mw 16 14 Phase 1 Phase 2 Phase 3 12 10 8 6 4 Single Device Demo Pre- Commercial Arrays Grant Support & Hi Tariff Support Small Commercial Arrays Transition Tariff Support Large Commercial Arrays Enduring Tariff Support 2 0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 TRL8 TRL9 Indicative Timeline
WestWave Project Opportunity for first wave energy project in Ireland: 5 MW Up to 19.8m Funding awarded under EU NER300 Wave category Project consortium includes four of the leading technologies Project supported by industry via a number of Associate Partners Opportunity to develop the Supply Chain for Ocean Energy in Ireland www.westwave.ie (images courtesy of Aquamarine Power, Wavebob, Ocean Energy, Pelamis Wave Power)
Hs (m) WestWave Progress Seabed Surveys Complete Technology Procurement early steps taken Environmental Scoping Reports Published Killard Wave Height Grid Offers in place 13 11 9 7 5 3 Hs - Measured Wave Measurements underway 1 23/11/2011 00:00 28/11/2011 00:00 03/12/2011 00:00 08/12/2011 00:00 13/12/2011 00:00 18/12/2011 00:00 23/12/2011 00:00 28/12/2011 00:00 02/01/2012 00:00 07/01/2012 00:00 12/01/2012 00:00 Date
Summary Ocean Energy is a credible future RES option for the All Islands Market but costs must be in line with Offshore Wind. A trajectory to acceptable cost and performance requires : International Collaboration A transition support regime Ireland can play a significant role in services and technology development for the sector and derive significant economic benefit. WestWave is now well positioned for Ireland to capitalise on these opportunities.