Scotrenewables Commercialisation Plan
There is now little doubt within the industry, particularly by those with expert inside knowledge, that marine renewable energy will never be economically viable unless low cost installation and maintenance vessels are used.
The Scotrenewables Tidal Turbine has been designed for rapid deployment and retrieval employing the use of a modest readily available multicat type work vessel. The device is expected to produce energy at a lower cost than the fixed structure devices being developed by competitors due to lower capital costs during construction and installation and lower anticipated operating costs due to ease of maintenance. Thus it naturally has a considerable global market potential including a significant potential for run-of-the-river hydro application due to its scalability.
The Scotrenewables Tidal Turbine is expected to generate electricity at a cost that is comparable to the current cost of offshore wind energy, and significantly lower than the majority of competing wave and tidal technologies. Installed cost per MW for the technology is expected to be approximately £3m/MW in the opening commercial stage, reflecting the signifcantly lower installation costs of floating tidal turbines. Using the Carbon Trust Marine Energy Challenge methodology a 10MW post-prototype array of the tidal turbine suggests produce energy at an estimated cost of between 14p/kWh to 24p/kWh, depending on site and market conditions. As learning rates and economies of scale are introduced with increasing installed capacity, the levelized Costs of Energy for the technology will continue to fall in the future.
The global market potential for Tidal and Run-of-River Hydro Energy is vast. The first commercial step toward tapping into this market will be a 10MW demonstrator farm in Orkney / Pentland Firth waters, targeted to come online by 2015. This 10MW farm would provide enough energy for up to 5000 homes, and would be a major step forward toward full commercialisation of the technology. Scotrenewables believe that even this early-stage installation would be competitive with Offshore Wind Energy, reflecting the significantly lower installation costs of the technology to offshore fixed structures.
Beyond the commercial demonstrator farm we have proposed a realistic and manageable increase in device sales focusing on fewer larger tidal farms, which will result in over 150MW installed with associated sales of over £300m by 2020. In addition to our existing partners, who are both major players in the energy business Scotrenewables has established good relationships with some leading utility companies and project developers, with a view to forming joint-venture commercial project developments in the future.
To support the medium term commercial sales our partners are already starting to develop potential sites for the technology worldwide. In the medium to long-term, Scotrenewables Tidal Power intend to maintain internal control of device assembly, all installation works and service in a similar approach to the majority of wind turbine manufacturers.