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Critical Factors Influencing Viability of Wave Energy Converters in Off-Grid Luxury Resorts and Small Utilities

Author

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  • Aksel Botne Sandberg

    (Norwegian Institute of Systems Engineering (NISE), Høyskolen i SørØst-Norge, Hasbergs vei 36, 3616 Kongsberg, Norway)

  • Eirik Klementsen

    (Norwegian Institute of Systems Engineering (NISE), Høyskolen i SørØst-Norge, Hasbergs vei 36, 3616 Kongsberg, Norway)

  • Gerrit Muller

    (Norwegian Institute of Systems Engineering (NISE), Høyskolen i SørØst-Norge, Hasbergs vei 36, 3616 Kongsberg, Norway)

  • Adrian De Andres

    (Institute for Energy Systems, University of Edinburgh, West Mains Road, Edinburgh EH9 3JN, UK)

  • Jéromine Maillet

    (CorPower Ocean AB, Brinellvägen 23, 114 28 Stockholm, Sweden)

Abstract

This paper examines technical and non-technical factors that are critical to the viability of commercialization of wave energy converters in off-grid luxury resorts and small utilities. Critical factors are found by investigating Levelized Cost of Energy, and using the tools PESTEL and Porter’s five competitive forces. Identified factors are then applied on three business cases to investigate their impact on viability. The results show that one of the main challenges facing off-grid commercialization is the few wave energy converter units installed per location, negating the economy of scale that large wave energy farms count on to achieve competitive cost levels. In addition, factors like current cost of energy, available wave resources, distance from shore, infrastructure, supply chain logistics, and electricity demand are found to be deciding factors for viability. Despite these challenges, it is found that there are potentially viable off-grid business cases for commercialization of wave energy converters.

Suggested Citation

  • Aksel Botne Sandberg & Eirik Klementsen & Gerrit Muller & Adrian De Andres & Jéromine Maillet, 2016. "Critical Factors Influencing Viability of Wave Energy Converters in Off-Grid Luxury Resorts and Small Utilities," Sustainability, MDPI, vol. 8(12), pages 1-22, December.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:12:p:1274-:d:84614
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