OES Annual Report 2012 - Ocean Energy Systems

OES Annual Report 2012 - Ocean Energy Systems OES Annual Report 2012 - Ocean Energy Systems

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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.

28 Main Public Funding Mechanisms The main public funding for ocean energy is provided through the Energy Agency EUDP, Energinet.DK and the Danish Council for Strategic Research. Within Energinet.DK, the focus is on bringing the most promising wave energy technologies to proper demonstration and full-scale installations. The price of the electricity generated must be significantly reduced. Together with Forsk-VE, Forsk-EL will make it possible to have selected wave power technologies developed right through to commercial installations. Relevant Legislation and Regulation Time limited permits for testing wave energy systems in Danish waters can be obtained at the Danish Energy Agency by submitting one single application, which documents the project. Several Danish developers hold such permits typically for a period of about 2 years. Relevant documents released “Wave Energy Technology Strategy for Research, Development and Demonstration 2012” Partnership for Wave Energy, by K. Nielsen, J. Krogh, N. E. H. Jensen, J. P. Kofoed, E. Friis-Madsen, B. V. Mikkelsen, A. Jensen. Aalborg University (DCE Technical Reports;146). The document is available for download at http://goo.gl/uAawr RESEARCH & DEVELOPMENT Government Funded R&D A five year strategic research project “the Structural Design of Wave Energy Devices SDWED”, funded by the Danish Council for Strategic Research and co-coordinated by AAU, is ongoing. In Denmark, nearly all development of wave energy systems is funded by the Government and the development of systems has followed a five-step process from smaller laboratory tests to open sea tests - as illustrated in the figure 3 below. STEP1 Basic research and model testing STEP2 Design optimization feasibility studies additional model STEP3 Development and testing of components and prototype testing in the protected waters STEP4 Close to full scale grid-connected experiments for example at DanWEC in Hanstholm STEP5 Demonstration of wave energy parks consisting of multiple devices FIGURE 3: The typical Danish stepwise development, stimulating innovation and minimize risk. TECHNOLOGY DEMONSTRATION Operational Ocean Energy Projects Wavestar is currently testing their prototype with two floaters at DanWEC, Hanstholm. Wavestar has an installed generator power of 110 kW and the maximum production measured is 39 kW. Monthly production reports are delivered to Energinet.dk. Floating Power Plant has commenced the third offshore test phase of their prototype including 140 kW wave power and 33 kW wind power at benign site at the offshore windmill park Vindeby. ANNUAL REPORT 2012

28<br />

Main Public Funding Mechanisms<br />

The main public funding for ocean energy is provided through the <strong>Energy</strong> Agency EUDP, Energinet.DK<br />

and the Danish Council for Strategic Research. Within Energinet.DK, the focus is on bringing the most<br />

promising wave energy technologies to proper demonstration and full-scale installations. The price of the<br />

electricity generated must be significantly reduced. Together with Forsk-VE, Forsk-EL will make it possible<br />

to have selected wave power technologies developed right through to commercial installations.<br />

Relevant Legislation and Regulation<br />

Time limited permits for testing wave energy systems in Danish waters can be obtained at the Danish <strong>Energy</strong><br />

Agency by submitting one single application, which documents the project. Several Danish developers hold<br />

such permits typically for a period of about 2 years.<br />

Relevant documents released<br />

“Wave <strong>Energy</strong> Technology Strategy for Research, Development and Demonstration <strong>2012</strong>” Partnership for Wave<br />

<strong>Energy</strong>, by K. Nielsen, J. Krogh, N. E. H. Jensen, J. P. Kofoed, E. Friis-Madsen, B. V. Mikkelsen, A. Jensen.<br />

Aalborg University (DCE Technical <strong>Report</strong>s;146). The document is available for download at http://goo.gl/uAawr<br />

RESEARCH & DEVELOPMENT<br />

Government Funded R&D<br />

A five year strategic research project “the Structural Design of Wave <strong>Energy</strong> Devices SDWED”, funded by<br />

the Danish Council for Strategic Research and co-coordinated by AAU, is ongoing. In Denmark, nearly all<br />

development of wave energy systems is funded by the Government and the development of systems has<br />

followed a five-step process from smaller laboratory tests to open sea tests - as illustrated in the figure 3 below.<br />

STEP1<br />

Basic research<br />

and model testing<br />

STEP2<br />

Design optimization<br />

feasibility studies<br />

additional model<br />

STEP3<br />

Development<br />

and testing<br />

of components<br />

and prototype<br />

testing in the<br />

protected waters<br />

STEP4<br />

Close to full scale<br />

grid-connected<br />

experiments<br />

for example<br />

at DanWEC in<br />

Hanstholm<br />

STEP5<br />

Demonstration<br />

of wave energy<br />

parks consisting<br />

of multiple devices<br />

FIGURE 3: The typical Danish stepwise development, stimulating innovation and minimize risk.<br />

TECHNOLOGY DEMONSTRATION<br />

Operational <strong>Ocean</strong> <strong>Energy</strong> Projects<br />

Wavestar is currently testing their prototype with two floaters at DanWEC, Hanstholm. Wavestar has an<br />

installed generator power of 110 kW and the maximum production measured is 39 kW. Monthly production<br />

reports are delivered to Energinet.dk.<br />

Floating Power Plant has commenced the third offshore test phase of their prototype including 140 kW<br />

wave power and 33 kW wind power at benign site at the offshore windmill park Vindeby.<br />

ANNUAL<br />

REPORT <strong>2012</strong>

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