OES Annual Report 2012 - Ocean Energy Systems

27
04 / COUNTRY REPORTS
The plan is roughly presented in table 1 below, indicating four different price levels necessary to perform
the development.
YEAR
DEMONSTRATION
CAPACITY MW
PRODUCTION LIMIT/YEAR
MWH/Y
TARIFF
€/MWH
2015 – 2025
2020 – 2030
2025 – 2035
2030 –
2 – 5
10 – 20
30 – 60
500 – 1000
7.000
30.000
100.000
1.500.000
600
400
200
120
TABLE 1: Size of projects and graduation of tariffs for the proposed development
ÌÌ
Demonstration projects (2015-2025) up to a total of about 2-5 MW proposed by the Partnership
for demonstration purposes (i.e. at DanWEC or Horns Rev offshore wind park) which in terms of energy
production are considered suboptimal. The projects will therefore be relatively expensive and to attract
private investments the Partnership proposes a feed-in tariff of €600/MWh for a limited annual production
of 7000 MWh/year over a maximum of 10 years.
ÌÌ
Small wave energy parks (2020-2030) up to a total between 10 – 20 MW, i.e. developed from the
concepts that have been demonstrated at DanWEC. These first larger parks would be put for tender on a
tariff of €400/MWh with a production limit of up to 30.000MWh/year over a period of 10 years.
ÌÌ
Large wave energy parks (2025-2035) up to 30 – 60 MW capacity put to tender with a tariff of €200/
MWh with an annual production limit of 100.000MWh/year over a period of 10 years.
ÌÌ
Cost effective offshore energy park (2030 - ) 500 - 1000 MW capacity put to tender with a tariff of
120€/MWh with an annual production of 1.500.000MWh/year over a period of 20 - 50 years.
This development plan acknowledges that testing and demonstrating hardware at sea is required (even at
an early stage with high costs compared to other technologies), in order to gain experience and operating
knowledge to carry out the development. The development is accompanied by research and development
at a more fundamental level in laboratories, land based test facilities and universities that gradually will
enable the more cost efficient schemes.
Energinet.DK has developed a simple new excel based tool that can help calculate the cost of energy
produced by the wave energy converter in a standardized way. Any wave energy project supported
by Energinet.DK Forsk-VE or Forsk-EL programmes will be required to present the cost of energy and
background information. This tool will help focus the development to reach the targets.
Support Initiatives and Market Stimulation Incentives
Public funding authorities will typically require matching private investment even at this relative early stage
of development. It is therefore proposed that a project specific feed-in tariff based on the performance of
the device (Forsk-VE component in Denmark) is applied for future prototype testing.
The Partnership recommends as illustrated above a conditional funding mechanism – i.e. performance
based tariffs that will enable investors to have their investment returned, if the prototype project operates
according to a pre-specified performance and maintenance scheme. Even if such tariffs may appear high
compared to other sources of energy, the described limits and graduation to lower levels will help support
and develop the best systems and gain confidence, incorporating whatever new knowledge, with a minimal
risk for the public investment.