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Levelised costs of Wave and Tidal energy in the UK: Cost competitiveness and the importance of "banded" Renewables Obligation Certificates

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  • Allan, Grant
  • Gilmartin, Michelle
  • McGregor, Peter
  • Swales, Kim

Abstract

In this paper, publicly available cost data are used to calculate the private levelised costs of two marine energy technologies for UK electricity generation: Wave and Tidal Stream power. These estimates are compared to those for ten other electricity generation technologies whose costs were identified by the UK Government (DTI, 2006). Under plausible assumptions for costs and performance, point estimates of the levelised costs of Wave and Tidal Stream generation are £190 and £81/MWh, respectively. Sensitivity analysis shows how these relative private levelised costs calculations are affected by variation in key parameters, specifically the assumed capital costs, fuel costs and the discount rate. We also consider the impact of the introduction of technology-differentiated financial support for renewable energy on the cost competitiveness of Wave and Tidal Stream power. Further, we compare the impact of the current UK government support level to the more generous degree of assistance for marine technologies that is proposed by the Scottish government.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 39 (2011)
Issue (Month): 1 (January)
Pages: 23-39

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Handle: RePEc:eee:enepol:v:39:y:2011:i:1:p:23-39

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Web page: http://www.elsevier.com/locate/enpol

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Keywords: Levelised costs comparison Marine energy Support mechanisms;

References

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Citations

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Cited by:
  1. Allan, Grant & Eromenko, Igor & McGregor, Peter & Swales, Kim, 2011. "The regional electricity generation mix in Scotland: A portfolio selection approach incorporating marine technologies," Energy Policy, Elsevier, vol. 39(1), pages 6-22, January.
  2. Delucchi, Mark A. & Jacobson, Mark Z., 2011. "Providing all global energy with wind, water, and solar power, Part II: Reliability, system and transmission costs, and policies," Energy Policy, Elsevier, vol. 39(3), pages 1170-1190, March.
  3. Francesco Ferri & Simon Ambühl & Boris Fischer & Jens Peter Kofoed, 2014. "Balancing Power Output and Structural Fatigue of Wave Energy Converters by Means of Control Strategies," Energies, MDPI, Open Access Journal, vol. 7(4), pages 2246-2273, April.
  4. Vantoch-Wood, Angus & Connor, Peter M., 2013. "Using network analysis to understand public policy for wave energy," Energy Policy, Elsevier, vol. 62(C), pages 676-685.
  5. Gurkan, G. & Langestraat, R., 2013. "Modeling And Analysis Of Renewable Energy Obligations And Technology Bandings In the UK Electricity Market," Discussion Paper 2013-016, Tilburg University, Center for Economic Research.
  6. Wright, Daniel G. & Dey, Prasanta K. & Brammer, John G., 2013. "A fuzzy levelised energy cost method for renewable energy technology assessment," Energy Policy, Elsevier, vol. 62(C), pages 315-323.
  7. del Río, Pablo & Cerdá, Emilio, 2014. "The policy implications of the different interpretations of the cost-effectiveness of renewable electricity support," Energy Policy, Elsevier, vol. 64(C), pages 364-372.
  8. Gürkan, Gül & Langestraat, Romeo, 2014. "Modeling and analysis of renewable energy obligations and technology bandings in the UK electricity market," Energy Policy, Elsevier, vol. 70(C), pages 85-95.

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