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02 MARKET AND INDUSTRY TRENDS Wales, the Swedish tidal stream technology company Minesto secured USD 14.2 million (EUR 13 million) of EU funds to support development of its Deep Green device, which operates as an underwater kite. 12 Minesto partnered with Schottel Hydro, a German turbine manufacturer that will supply turbine components for upcoming deployments of Deep Green devices. 13 Also in the United Kingdom, Sustainable Marine Energy Ltd. (UK) installed its PLAT-O turbine platform, which the company hopes will drive down the cost of tidal energy. The platform was fitted with two Schottel instream turbines and installed off the Isle of Wight, where it met all expectations. 14 Schottel notes that there is synergy in the combination of turbine and platform because both are designed to be lightweight, robust and simple. 15 Nova Innovation (Scotland) and its partner ELSA (Belgium) secured additional funding from the Scottish government for a 500 kW tidal array in Shetland’s (Scotland) Bluemull Sound. The project uses Nova’s 100 kW M100 direct-drive turbine, and the first unit delivered power to the grid in early 2016. 16 To the south, Sabella SAS (France) launched its full-scale, gridconnected 1 MW D10 tidal turbine off the coast of Brittany, in the Fromveur Strait, where it supplies electricity to the Ushant Island. 17 OpenHydro (a subsidiary of DCNS, France) continued its work off the French coast, deploying the first of two new turbines at EDF’s (France) site at Paimpol-Bréhat, following a few years of testing. 18 Across the Atlantic, OpenHydro also advanced a project at Canada’s Fundy Ocean Research Center for Energy (FORCE) in the Bay of Fundy, where the company was awarded USD 4.5 million (CAD 6.3 million) to support its deployment of two 2 MW tidal turbines with local partner Emera. 19 The joint venture anticipated turbine deployment in 2016. 20 Wave energy also saw progress during the year, with the deployment of several devices in pilot and demonstration projects in Europe, Australia, the United States and elsewhere. AW-Energy of Finland continued to refine its WaveRoller device in 2015, with plans to deploy 350 kW commercial units in a 5.6 MW array in Portugal in the near future. 21 In neighbouring Sweden, the 1 MW Sotenäs Wave Power Plant by Seabased (Sweden) started generating power in early 2016. The Sotenäs plant couples linear generators on the sea floor to surface buoys (point absorbers) and is said to be the world’s first array of multiple wave energy converters in operation. 22 Off the coast of Tuscany in Italy, 40South Energy (UK) launched its new 50 kW H24 wave energy converter, a fully submerged machine that is optimised to convert wave and tidal energy in shallow waters. 23 Also in 2015, Eco Wave Power (Israel) deployed its secondgeneration wave energy conversion device in the Jaffa Port of Israel. 24 The company also advanced on the first 100 kW phase of a 5 MW EU-funded plant across the Mediterranean Sea in Gibraltar; the plant is expected to meet 15% of local electricity demand when it is completed. 25 In Australia, BioPower Systems (Australia) deployed its 250 kW bioWAVE pilot demonstration unit off the coast of Port Fairy, Victoria. The device is a 26-metre-tall oscillating structure that was inspired by undersea plants; it is designed to sway back and forth beneath the ocean swell, capturing energy. 26 Another Australian firm, Carnegie Wave Energy Ltd, moved towards deployment of its 1 MW CETO 6 device in early 2016, a scaled-up version of the CETO 5 deployed in 2014. 27 Across the South Pacific, the US state of Hawaii, home to the US Navy’s Wave Energy Test Site (WETS), saw some progress during the year. Northwest Energy Innovations was chosen by the US Department of Energy to demonstrate its half-scale Azura wave energy device for one year of grid-connected testing at WETS, where the company implemented various improvements that were based on previous (2012) trials. 28 Other wave energy technology developers are scheduled to test their devices at WETS in coming years. 29 The global wave energy industry received significant support from the Scottish Government in 2015. The government-funded Wave Energy Scotland, which was established in late 2014 to support development of wave energy technology, awarded over USD 13 million (over GBP 9 million) in 2015 to multiple developers in several countries for the advancement of innovative wave energy technologies at various stages of development. 30 Among the most notable success stories in wave energy conversion has been the 296 kW Mutriku plant in the Basque 58
Country of Spain, the first commercial wave energy plant in Europe. Since its installation in 2011, the plant has operated continuously and, as of early 2016, it had generated more than 1 GWh of electricity by harnessing wave-driven compressed air (oscillating water column). 31 Ocean energy technologies – both tidal and wave energy – also are being developed actively in East Asia. Japan has established several demonstration sites for ocean energy development with two projects coming online in 2015, a 5 kW tidal stream unit at Shiogama and a 43 kW wave energy project at Kuji. 32 China also is engaged in the development of both wave and tidal energy technologies and, in 2015, had 10.7 MW of capacity installed, including several development projects. 33 The Jiangxia tidal power plant was upgraded in 2015, from 3.9 MW to 4.1 MW. 34 Among new development projects is the 100 kW Sharp Eagle wave energy converter, which was deployed in 2015. 35 China’s experience to date indicates that the country’s tidal current technologies exhibit significantly lower-cost structures than its wave energy projects, but all are limited by immature technology and lack of experience and supporting infrastructure. 36 Although the vast majority of demonstration and pilot projects focus on extracting useful energy from the tides and waves, the year 2015 also saw advances in the area of ocean thermal energy conversion (OTEC). Makai Ocean Engineering (United States) connected a new 100 kW OTEC plant – believed to be the world’s largest – to Hawaii’s electric grid in August. 37 Makai’s research and evaluation OTEC plant uses the temperature difference between deep ocean water (at 670 metres) and surface water to generate electricity, where a closed-cycle working fluid of ammonia drives a turbine for power generation. 38 As more projects are tested around the world, it is increasingly important to understand the potential effects of ocean energy development on marine life. A report on the status of scientific knowledge in this area, released in early 2016, found that the main potential interactions between ocean energy devices and marine animals that present ongoing concern include: risk of animals colliding with moving components; various potential impacts of sound propagation from ocean energy devices; and any biological effect of electromagnetic fields generated from underwater cables. 39 Many of the perceived risks associated with such interactions are driven by uncertainty, due to lack of data, which continues to confound differentiation between real and perceived risks. 40 US Navy’s recently renovated Carderock Maneuvering and Seakeeping Basin wave simulator will be used in a government effort to stimulate innovation, establish new companies and drive down costs in the development of new wave energy devices in the United States. 42 Across the Atlantic, the FloWave ocean simulation test tank that opened at the University of Edinburgh in 2014 is intended to mitigate project risk by allowing testing of ocean energy devices before committing to the cost of trials at sea. 43 In 2015, Canadian and UK parties launched a collaboration to develop a new sensor system to increase understanding of the impact of turbulence on tidal devices, and thus reduce development risk. 44 The European Marine Energy Centre (EMEC) and FloWave joined forces to simulate actual sea conditions around Orkney based on EMEC’s monitoring data, with the aim of improving test results. 45 Due to difficult market conditions that include limited funding for R&D and a constrained financial landscape in general, EMEC characterised the year as turbulent, but noted also that new developers were signed up for tests at the Centre. 46 Despite the many encouraging developments in ocean energy in 2015, the industry’s challenges took their toll, and the year witnessed consolidation in the industry as well as one closure. Aquamarine Power (UK) announced the successful demonstration of its wave energy converter (Oyster 800) in early 2015, but only a few months later the company was placed in administration due to lack of private sector backing that was required to supplement public funding support; subsequently, the company was dissolved. 47 Atlantis acquired from Siemens AG the UK-based company Marine Current Turbines (MCT) – the manufacturer of the world’s first utility-scale tidal stream project (the 1.2 MW SeaGen system). In late 2015, ScottishPower Renewables joined Atlantis as a shareholder in the Tidal Power Scotland Limited (TPSL) project portfolio, folding into TPSL its development projects in Scotland. 48 The industry continues to face a variety of challenges that were explored by the European Commission’s Ocean Energy Forum in its 2015 draft Strategic Roadmap on ocean energy. The document outlines the main imperatives for overcoming the hurdles to realising commercial success for the various ocean energy technologies. These imperatives include infrastructure and logistical needs of the industry for technology advancement; overcoming financing obstacles in an industry characterised by relatively high risk and high upfront costs; and the need for improved planning, consenting and licensing procedures. 41 02 The relatively high development risk of ocean energy technologies has proven the need for well-equipped test centres and other risk-mitigating innovations. In combination with competitive financial incentives from the US Department of Energy, the RENEWABLES 2016 · GLOBAL STATUS REPORT 59
- Page 7 and 8: FOREWORD The year 2015 was an extra
- Page 9 and 10: RENEWABLES GLOBAL STATUS REPORT (GS
- Page 11 and 12: Note: Some individuals have contrib
- Page 13 and 14: Sweden Robert Fischer (University o
- Page 15 and 16: REVIEWERS AND OTHER CONTRIBUTORS Sh
- Page 17 and 18: EXECUTIVE SUMMARY GLOBAL OVERVIEW A
- Page 19 and 20: RENEWABLE ENERGY INDICATORS 2015 IN
- Page 21 and 22: TOP FIVE COUNTRIES Annual investmen
- Page 23 and 24: SOLAR PV: Record deployment and rap
- Page 25 and 26: INVESTMENT FLOWS A new record high;
- Page 27 and 28: 01 GLOBAL OVERVIEW The year 2015 wa
- Page 29 and 30: markets, policy changes and uncerta
- Page 31 and 32: Sidebar 1. Regional Spotlight: Sout
- Page 33 and 34: Figure 4. Renewable Power Capacitie
- Page 35 and 36: also are growing, as are wind turbi
- Page 37 and 38: n Latin America: Biomass-based heat
- Page 39 and 40: n Africa: Although biofuel producti
- Page 41 and 42: JOBS IN RENEWABLE ENERGY Table 1. E
- Page 43 and 44: 02 MARKET AND INDUSTRY TRENDS BIOMA
- Page 45 and 46: BIOMASS ENERGY Figure 7. Shares of
- Page 47 and 48: China, the third largest ethanol pr
- Page 49 and 50: concluded long-term offtake agreeme
- Page 51 and 52: GEOTHERMAL POWER Figure XX. Figure
- Page 53 and 54: GEOTHERMAL INDUSTRY Low natural gas
- Page 55 and 56: HYDROPOWER Figure 12. Hydropower Gl
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- Page 61 and 62: 7.3 GW was installed, for a total o
- Page 63 and 64: Figure 16. Solar PV Capacity and Ad
- Page 65 and 66: SOLAR PV INDUSTRY The solar PV indu
- Page 67 and 68: Sharp - in the storage market by in
- Page 69 and 70: CSP INDUSTRY It was a watershed yea
- Page 71 and 72: SOLAR THERMAL HEATING AND COOLING F
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- Page 79 and 80: WIND POWER INDUSTRY The wind power
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- Page 93 and 94: INVESTMENT AND FINANCING The year 2
- Page 95 and 96: The market for PAYG solar - micro-p
- Page 97 and 98: in 2015. In 2014, GACC projected th
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- Page 107 and 108: 05 POLICY LANDSCAPE Nearly all coun
Country of Spain, the first commercial wave energy plant in<br />
Europe. Since its installation in 2011, the plant has operated<br />
continuously and, as of early 2016, it had generated more than<br />
1 GWh of electricity by harnessing wave-driven compressed air<br />
(oscillating water column). 31<br />
Ocean energy technologies – both tidal and wave energy – also<br />
are being developed actively in East Asia. Japan has established<br />
several demonstration sites for ocean energy development with<br />
two projects coming online in 2015, a 5 kW tidal stream unit at<br />
Shiogama and a 43 kW wave energy project at Kuji. 32 China also<br />
is engaged in the development of both wave and tidal energy<br />
technologies and, in 2015, had 10.7 MW of capacity installed,<br />
including several development projects. 33 The Jiangxia tidal<br />
power plant was upgraded in 2015, from 3.9 MW to 4.1 MW. 34<br />
Among new development projects is the 100 kW Sharp Eagle<br />
wave energy converter, which was deployed in 2015. 35 China’s<br />
experience to date indicates that the country’s tidal current<br />
technologies exhibit significantly lower-cost structures than its<br />
wave energy projects, but all are limited by immature technology<br />
and lack of experience and supporting infrastructure. 36<br />
Although the vast majority of demonstration and pilot projects<br />
focus on extracting useful energy from the tides and waves, the<br />
year 2015 also saw advances in the area of ocean thermal energy<br />
conversion (OTEC). Makai Ocean Engineering (United States)<br />
connected a new 100 kW OTEC plant – believed to be the world’s<br />
largest – to Hawaii’s electric grid in August. 37 Makai’s research<br />
and evaluation OTEC plant uses the temperature difference<br />
between deep ocean water (at 670 metres) and surface water<br />
to generate electricity, where a closed-cycle working fluid of<br />
ammonia drives a turbine for power generation. 38<br />
As more projects are tested around the world, it is increasingly<br />
important to understand the potential effects of ocean energy<br />
development on marine life. A report on the status of scientific<br />
knowledge in this area, released in early 2016, found that the<br />
main potential interactions between ocean energy devices and<br />
marine animals that present ongoing concern include: risk of<br />
animals colliding with moving components; various potential<br />
impacts of sound propagation from ocean energy devices; and<br />
any biological effect of electromagnetic fields generated from<br />
underwater cables. 39 Many of the perceived risks associated with<br />
such interactions are driven by uncertainty, due to lack of data,<br />
which continues to confound differentiation between real and<br />
perceived risks. 40<br />
US Navy’s recently renovated Carderock Maneuvering and<br />
Seakeeping Basin wave simulator will be used in a government<br />
effort to stimulate innovation, establish new companies and drive<br />
down costs in the development of new wave energy devices in<br />
the United States. 42<br />
Across the Atlantic, the FloWave ocean simulation test tank that<br />
opened at the University of Edinburgh in 2014 is intended to<br />
mitigate project risk by allowing testing of ocean energy devices<br />
before committing to the cost of trials at sea. 43 In 2015, Canadian<br />
and UK parties launched a collaboration to develop a new sensor<br />
system to increase understanding of the impact of turbulence on<br />
tidal devices, and thus reduce development risk. 44 The European<br />
Marine Energy Centre (EMEC) and FloWave joined forces to<br />
simulate actual sea conditions around Orkney based on EMEC’s<br />
monitoring data, with the aim of improving test results. 45<br />
Due to difficult market conditions that include limited funding for<br />
R&D and a constrained financial landscape in general, EMEC<br />
characterised the year as turbulent, but noted also that new<br />
developers were signed up for tests at the Centre. 46<br />
Despite the many encouraging developments in ocean energy<br />
in 2015, the industry’s challenges took their toll, and the year<br />
witnessed consolidation in the industry as well as one closure.<br />
Aquamarine Power (UK) announced the successful demonstration<br />
of its wave energy converter (Oyster 800) in early<br />
2015, but only a few months later the company was placed in<br />
administration due to lack of private sector backing that was<br />
required to supplement public funding support; subsequently, the<br />
company was dissolved. 47<br />
Atlantis acquired from Siemens AG the UK-based company<br />
Marine Current Turbines (MCT) – the manufacturer of the<br />
world’s first utility-scale tidal stream project (the 1.2 MW SeaGen<br />
system). In late 2015, ScottishPower Renewables joined Atlantis<br />
as a shareholder in the Tidal Power Scotland Limited (TPSL)<br />
project portfolio, folding into TPSL its development projects in<br />
Scotland. 48<br />
The industry continues to face a variety of challenges that were<br />
explored by the European Commission’s Ocean Energy Forum<br />
in its 2015 draft Strategic Roadmap on ocean energy. The<br />
document outlines the main imperatives for overcoming the<br />
hurdles to realising commercial success for the various ocean<br />
energy technologies. These imperatives include infrastructure<br />
and logistical needs of the industry for technology advancement;<br />
overcoming financing obstacles in an industry characterised<br />
by relatively high risk and high upfront costs; and the need for<br />
improved planning, consenting and licensing procedures. 41<br />
02<br />
The relatively high development risk of ocean energy technologies<br />
has proven the need for well-equipped test centres and other<br />
risk-mitigating innovations. In combination with competitive<br />
financial incentives from the US Department of Energy, the<br />
RENEWABLES 2016 · GLOBAL STATUS REPORT<br />
59