Global Prospects for Cost-Effective Development of Ocean Energy for Island Electrification Dr. Narasimalu Srikanth OES Represenative Conference on Island

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  • Global Prospects for Cost-Effective Development of Ocean Energy for Island Electrification Dr. Narasimalu Srikanth OES Represenative Conference on Island Energy Transitions: Pathways for Accelerated Uptake of Renewables 22-24 June 2015, IRENA- Martinique Program Director/ Senior Scientist Energy Research Institutute @NTU (ERI@N), Singapore
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  • * Need for Island Electrification 2 (Source: Reiner-Lemoine-Institut) 11% of global population lives on islands huge potential for hybrid mini-grids in many communities with no access to electricity
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  • * Landscape of Island Electrification 3 Most islands remain heavily dependent on conventional sources for electricity supply. Fossil fuel import cost covers high percentage of GDP: o 20 % of annual imports of 34 islandic countries within the Small Islands Developing States network (SIDS), and 5-20 % of their GDP. o Approximately 15 % of entire import cost of most of the European Unions 286 islands. Fluctuation of fossil fuel prices cause uncertainties for island financial planning. Over-exploitation of fossil fuels globally affects the environment and threatens the energy security of islandic societies.
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  • e.g.Phillipiness islandic Energy Needs e.g.Phillipiness islandic Energy Needs 4 Energy Research Institute @ NTU Confidential Off-grid areas of the Philippines Electrification rate of the Philippines is about 89.7%. Rural electrification fall on the Small Powers Utilities Group (SPUG). Supplies power to off grid areas by utilizing power barges. Challenges dispersed locations & absence of indigenous energy resources Theoretical capacity of 170,000MW Over a 1000Sq.km ocean resource area Focus in OTEC and Tidal & wave power generation. Potential Thousands of miles of coastline, For ocean energy, an estimated 240,000MW capacity Electrification Government Potential (2012 MEDP) suggests that private sector participation be pursued. (2012-2016 MISSIONARY ELECTRIFICATION DEVELOPMENT PLAN) Existing RE installed capacity: 5400MW (2012) Plans to increase installed capacity to 12700MW (2020) Source: NREP 2012 report Science (2010)
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  • Technology Issues & Remedies of ORE towards Islandic Needs Challenges: Lack of detailed resource & siting studies. Too high capital cost & upfront investment. RE is less promising due to intermittency. In developing islandic region, presence of weak grids. Skepticism in terms of impact on other marine users. Possible solutions: Require disruptive concepts that are site-specific & scalable to form arrays thru product modularity. Need low cost installation methods. Should possess resilience towards weak grid & mitigate interruption by energy storage & forecasting. Co-evolve regional market, supply chain & integrate with local skills through inter-industry learning. Setup standards & procedure for specific markets such as Tropical islands environmental impact assessment. Trust build in stakeholders thru test-bedding through collaborative open innovation network.
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  • Learning curve effects with Product Scaling During the early phases of product development little is known compared to all the factors that will eventually contribute to lifecycle cost and performance. Learning curves represent longer- term cost reductions for an industry. With every doubling of installations the cost is expected to decrease. Historically attained learning rates of RE is ~10%-30%. Wind experiences a learning rate of ~15%.
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  • Ocean Energy Potential Energy system modelling to incorporate future technological advances is to present potential pathways for new energy technologies to emerge wider energy mix. OES investigated existing energy system modelling, the Levelised Cost of Energy (LCOE) for wave, tidal and OTEC technologies. Industrys state of the art knowledge around the costs to deploy and operate each technology in its current state, and the cost reductions that are foreseen on the route to product commercialization. Engaged stakeholders of OES countries. The work is informed by a series of in-depth interviews with technology developers, and is built upon work carried out by different international projects (e.g. SI Ocean, DTOcean, Equimar, the Danish LCOE Calculation Tool, Carbon Trust, and US Department of Energy). Costs and operational parameters of each technology at three development phases: pre-commercial array, second pre- commercial array and the commercial scale target. Table: Summary data averaged for each stage of deployment, and each technology type (Source: OES)
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  • Tidal Energy
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  • Wave Energy
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  • OTEC Energy Source: OES(2015)
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  • Case of SEA Islandic Needs SEA is keen towards rural islandic electrication. Singapore is keen to be a R&D center for RE Technologies towards tropical islandic needs and focuses in disruptive product design & evaluates through test bedding efforts. Promote spillover of technologies from related industries & traditional Ocean energy efforts towards islandic needs. Promote drivers for supply chain development. Knowledge sharing of islandic states adoption of ocean energy with similar challenges : 50 different island communities http://www.globalislands.net/greenislands/ 50 different island communities http://www.globalislands.net/greenislands/ http://www.direkt-project.eu/ http://www.direkt-project.eu/ Exploit local skills By the People For the People Create new job opportunities. Setup necessary training to create manpower through engaging local academic institutions. 11 ERI@N Offshore REIDS
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  • Cost Effective Technology Developments Need to develop low cost disruptive resource mapping methods: Easily evaluate resource potential through Remote sensing & meso-scale resource mapping. Cost effective installation methods of Offshore renewable energy systems. Easily towable RE systems with easy decommissioning methods. Environmentally safe RE systems such that marine life is undisturbed (Corals, Sea based Mamals, nearby Fishfarms, etc). Setup proper procedures for Environmental impact assessment toward other marine users. Land based WEC designs are good for islandic condition e.g. LIMPET & Mutriku case study. LCOEs approx. 0,5 USD/kWh at 12% interest today Source: Bluetec Source: Schotel Source: Voith Hydro Wavegen
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  • Efforts for affordable RE systems Stakeholders action items: Government: to identify suitable mechanisms & policies to support towards technology supply and market demand evolution such as through technology push and market pull needs. Industry: Regional firms to understand ocean energy potential and support the evolution of production chain. Research: To evolve unique products & technologies for islands technology gaps. Evolve industrial clusters to promote supply chain and reduce cost Convergence within the industry need to happen in short time through collaborative effort to evolve supply chain involvement. Additionally to unlock the power of energy users (PROSUMERS) to create high demand for RE which will bring down the cost. Need to be aware of likely impacts of future ocean industry development on marine eco- systems and sustainability, the use of ocean space, and the implications for managing ocean activities 13
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  • Government Catalytic Role in RE adoption
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  • Summary 1.Ocean Energy Technology can meet Islandic energy needs and ORE Industry is capable to support islandic states three-fold challenge of energy security, CO 2 emission reduction, and economic & Job growth for the region. 2.To reduce initial capital cost, O&M cost & LCOE, Inter-industry learning should be explored to evolve right technologies & production chain through identifying technology similarity. 3.Regions should setup industrial clusters to promote Ocean energy supply chain and focus on customized ORE disruptive products. 4.Convergence within the industry need to happen in product architecture to minimize design variants to enhance accelerated learning. 5.Collaborative effort needed between stakeholders (technology developers, project developers, funding agencies) to evaluate risks and mitigate through early full scale test-bed efforts. 6.OES Part of IEA is keen towards promoting Ocean Energy Systems for Islandic region needs. 15