Tidal Power:China’s Connection to an Emerging Industry

Beijing Energy NetworkBEER LecturesMar 19, 2014

Evan Cervelli,Maritime Tidal Energy Corp. (MTEC)

1979

2014? 1

The Talk

• Overview of Marine Renewable Energy• Tidal Energy Devices (Barrage vs. In-Stream)• Existing Tidal Capacity• Tidal Energy Plans• Reasons for successes/failures• Opportunities• Challenges

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Take Aways

• Better idea of what is going on

• Appreciation for the building momentum

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Tidal Energy in the Past

Barrage/Dam 4 Tidal Plants

in World

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World Resource Map:Benefits of Tidal:-Energy density, predictability. Quick facts:10-25% of total worldwide electricity demand could be supplied by wave and tidal energy.Worldwide potential to develop 748 GW of ocean energy 2050, leading to a carbon savings of 5.2 billion tonnes of CO2.Estimated $60 billion/year industry by 2050; current activity estimates reaching about $1.2 billion in expenditures by 2015.Canada has one of the most significant and attractive marine renewable energy markets in the world with:Abundant energy sources: Wave, tidal, and river resources across the country.World class resource: Minas Passage (just one area of The Bay of Fundy) has a potential of 2,500 MW of extractable energy.Established market drivers: Projects under development in Nova Scotia supported by feed-in tariffs (FITs) up to 65.2 cents/kWh. Supportive policy regime: Nova Scotia’s Marine Renewable Energy Strategy sets a goal of 300 MW by 2020 and establishes a new licensing system.

Why Tidal?

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China Tidal Energy Potential

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MRE: Innovative Technology

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MRE: Innovative Technology

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-Annapolis-Korea-Map of Bay of Fundy

Investment hugeMany environmental concernsThe interest continues

Barrage Tidal

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Jiangxia

• -Image of Jiangxia, off shoot land reclemation farming and aquaculture industry.

• -Well chosen location for environment• In 1960 70 barrages built in China, all but

Jiangxia decommissioned due to siltation etc.

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Dynamic Tidal and China

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In-Stream Tidal: Big Players

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Windmill-like deviceTurbine farmsOvercomes problems of barrage technologyOther advantages still valid

The Financial Case

– “Currently the cost for generating electricity using an OpenHydro Turbine is comparable to offshore wind. Longer term, economics of large scale deployment will trend costs towards those for on shore wind”

OpenHydro web site

It is estimated that tidal stream energy could become competitive with current base costs of electricity by the time the UK has installed its estimated economic capacity of 2.8 GW

UK Ocean Industry

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Tidal Energy Demonstrations to Date

• Eight tidal energy developers in the world who have undertaken significant tidal turbine demos– 2002 Hammerfest Strom Norway .3 MW– 2003 Marine Current Turbines England .3 MW

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Tidal Energy Demonstrations to Date

– 2006 Clean Current Canada .06 MW– 2006 Verdant United States .03 MW– 2006 OpenHydro Scotland .25 MW– 2008 Marine Current N. Ireland 1.2 MW

Turbines

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Tidal Energy Demonstrations to Date

– 2009 Open Hydro Canada 1 MW– 2009 GCK /Lucid S. Korea 1 MW– 2010 Tidal Generation Scotland .5 MW– 2010 Atlantis Resources Scotland 1 MW

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Tidal Energy Demonstration Projected

- 2011 Hammerfest Strom Scotland 1 MW- 2011 Voith Hydro Scotland 1MW- 2012 Marine Current /MBP&P Canada 1.5 MW- 2012 Clean Current/Alstom Canada 2.2 MW- 2012 Atlantis/Irving/LM Canada 1MW

? Open Hydro (re-deploy) Canada 1MW

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Plans For China

• Atlantis Resources• Verdant• Dynamic tidal • Barrage?• Harbin U research?• Taiwan?….long term due to resource

challenges

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What can we learn

– Pace– Size– Countries leading the charge– Viability– Designs continue to evolve

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Tidal Energy Commercial Plans

2012-13 Marine Current Turbine Wales 10 MW2017-20 Scotland 100 MW

2011 OpenHydro France 4 MW

By 2020 Scotland 200 MW

2013-15 Hammerfest Strom Scotland 10 MWBy 2020 Scotland 100 MW

2013 Korea East West Power Co. S. Korea 90 MW

2011-12 Verdant USA 1 MW

By 2020 SSE Renewables Scotland 200 MW

By 2020 Maygen Scotland 400 MW

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What Does This Tell Us

• World activity centered in Scotland• 4 small commercial arrays in the next 2 years• 7 large commercial arrays in the next 10 years• Serious tidal energy commercial development• No commercial plans in Canada …..yet• A tidal/ocean industry is beginning to evolve

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Success Factors

• Resource• Electricity Costs/Trends• Political Environment• R &D• Proof-of-Concept Demos• Policy, Regulations• Incentives• Partners/Investors• Community Support

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Challenges

• Hostility of Environment• Deployment• Initial Costs• Proximity to Grid• Environment/Fishing Interests• Design• Financing• Government Budgets

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Summary• United Kingdom is a world leader• Canada close behind• China was once a world tidal leader. • Lots of tidal and MRE potential in China• Things are happening but slowly. • UK plan – 1 GW by 2020• Scotland – Leases for 700 MW by 2020• Competitive – When 2.8 GW installed• OREG – 100 MW in NS by 2020• Pins being placed to realize this objective

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Opportunities

• Multiple commercial arrays• Tidal energy industry• Ocean energy industry• Export• Sharing the Chinese tidal experience (Come to ICOE2014!)• Transferring offshore oil and gas expertise to MRE. • Manufacturing (Capacity in China)• Where will the centre of excellence develop?

Wind = Denmark Tidal = ?

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Sources / Acknowledgements

• http://mhk.pnnl.gov/wiki/images/3/33/Relevant_Ocean_Energy_Activities_in_China.pdf

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Tidal EnergyThe Momentum is Building

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