Cost Estimations
Wave energy capture systems have been developed since long time ago. In 1965 the first oscillating water column (OWC) device was constructed in Japan. Numerous and different types of devices have been built since then. However, wave energy is still not a viable way of energy exploitation. Although the device’s performance still could be improved and greater amounts of energy generated, power generation is not the only issue that wave energy needs to confront. In fact, its high costs are one of the main challenges which has yet to be overcome.
ATTENUATOR DEVICE
The cost estimation for the attenuator device is basically based in a report of the Electric Power Research Institute (EPRI) for a Pelamis power plant in San Francisco, USA. This report made a detailed estimation of all the cost figures involved in a wave project of a single Pelamis, estimating a total capital cost of around 5.5 million USD.
In order to estimate the cost of the device for our project, we contrasted this cost with other literature, concluding that 5.5 million USD was a very optimistic value. In the same way, following the Carbon Trust “Cost Estimation Methodology” report, we also took into account some key information that helped us on our estimation.
Making use of these two reports together with other information of the Pelamis device’s characteristics, and the typical cost distribution of a wave energy device provided by Carbon Trust, we were able to obtain a cost approximation. We estimated that a possible realistic cost for a single 750 kW attenuator device is around 7.5 million € with the following cost distribution:
ATTENUATOR DEVICE
The cost estimation for the attenuator device is basically based in a report of the Electric Power Research Institute (EPRI) for a Pelamis power plant in San Francisco, USA. This report made a detailed estimation of all the cost figures involved in a wave project of a single Pelamis, estimating a total capital cost of around 5.5 million USD.
In order to estimate the cost of the device for our project, we contrasted this cost with other literature, concluding that 5.5 million USD was a very optimistic value. In the same way, following the Carbon Trust “Cost Estimation Methodology” report, we also took into account some key information that helped us on our estimation.
Making use of these two reports together with other information of the Pelamis device’s characteristics, and the typical cost distribution of a wave energy device provided by Carbon Trust, we were able to obtain a cost approximation. We estimated that a possible realistic cost for a single 750 kW attenuator device is around 7.5 million € with the following cost distribution:
Costs breakdown for attenuator device
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Pie chart to show costs breakdown for attenuator device
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As we can see from the pie chart, nearly half of the costs are due to the device's main structure, and almost the other half is the project's management and the power take off system. From the previous Carbon Trust charts, we know that this cost distribution can change if an array is installed instead of an individual device.
POINT ABSORBER DEVICE
The cost estimation for the point absorber device is obtained from two different projects. On the one hand, the Federal Energy Regulatory Commission in Washington D.C estimated that the cost of an AquabuOY device for the offshore wave energy pilot project in Makah Bay was around 1 million USD.
On the other hand, a report of the Spanish Association of Renewable Energy Producers (APPA) in November 2006, estimated a total capital cost of 1.9 million € for a single AquabuOY device. Due to the significant difference between the cost estimation of these two reports, we built a new cost breakdown based on these two reports together with the mentioned Carbon Trust reports.
We estimated that the total capital cost for a point absorber device of 250 kW would be around 1.5 million € with the following cost distribution:
POINT ABSORBER DEVICE
The cost estimation for the point absorber device is obtained from two different projects. On the one hand, the Federal Energy Regulatory Commission in Washington D.C estimated that the cost of an AquabuOY device for the offshore wave energy pilot project in Makah Bay was around 1 million USD.
On the other hand, a report of the Spanish Association of Renewable Energy Producers (APPA) in November 2006, estimated a total capital cost of 1.9 million € for a single AquabuOY device. Due to the significant difference between the cost estimation of these two reports, we built a new cost breakdown based on these two reports together with the mentioned Carbon Trust reports.
We estimated that the total capital cost for a point absorber device of 250 kW would be around 1.5 million € with the following cost distribution:
Costs breakdown for point absorber device
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Pie chart to show costs breakdown for point absorber device
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It is important to say that all the values estimated here are an approximation and are not accurate, they should not be considered exact neither real. However, the purpose of these estimations is to analyse the influence in the levelised cost of energy (LCOE) of different variables and therefore, they are useful for the meaning of the project no matter their accurateness.