Levelised costs of Wave and Tidal energy in the UK: Cost competitiveness and the importance of "banded" Renewables Obligation Certificates
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 Â£190 and Â£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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sinden, Graham, 2007. "Characteristics of the UK wind resource: Long-term patterns and relationship to electricity demand," Energy Policy, Elsevier, vol. 35(1), pages 112-127, January.
- McDonald, Alan & Schrattenholzer, Leo, 2001. "Learning rates for energy technologies," Energy Policy, Elsevier, vol. 29(4), pages 255-261, March.
- Neij, Lena, 2008. "Cost development of future technologies for power generation--A study based on experience curves and complementary bottom-up assessments," Energy Policy, Elsevier, vol. 36(6), pages 2200-2211, June.
- Junginger, M. & Faaij, A. & Turkenburg, W. C., 2005. "Global experience curves for wind farms," Energy Policy, Elsevier, vol. 33(2), pages 133-150, January.
- Neij, L, 1999. "Cost dynamics of wind power," Energy, Elsevier, vol. 24(5), pages 375-389.
- Allan, Grant J. & Bryden, Ian & McGregor, Peter G. & Stallard, Tim & Kim Swales, J. & Turner, Karen & Wallace, Robin, 2008. "Concurrent and legacy economic and environmental impacts from establishing a marine energy sector in Scotland," Energy Policy, Elsevier, vol. 36(7), pages 2734-2753, July.
- Olsen, Jan Abel, 1993. "On what basis should health be discounted?," Journal of Health Economics, Elsevier, vol. 12(1), pages 39-53, April.
- Clarke, J.A. & Connor, G. & Grant, A.D. & Johnstone, C.M., 2006. "Regulating the output characteristics of tidal current power stations to facilitate better base load matching over the lunar cycle," Renewable Energy, Elsevier, vol. 31(2), pages 173-180.
- Styles, David & Jones, Michael B., 2007. "Current and future financial competitiveness of electricity and heat from energy crops: A case study from Ireland," Energy Policy, Elsevier, vol. 35(8), pages 4355-4367, August.
- Stallard, T. & Rothschild, R. & Aggidis, G.A., 2008. "A comparative approach to the economic modelling of a large-scale wave power scheme," European Journal of Operational Research, Elsevier, vol. 185(2), pages 884-898, March.
- Neij, Lena, 1997. "Use of experience curves to analyse the prospects for diffusion and adoption of renewable energy technology," Energy Policy, Elsevier, vol. 25(13), pages 1099-1107, November.
- Jeong, Suk-Jae & Kim, Kyung-Sup & Park, Jin-Won & Lim, Dong-soon & Lee, Seung-moon, 2008. "Economic comparison between coal-fired and liquefied natural gas combined cycle power plants considering carbon tax: Korean case," Energy, Elsevier, vol. 33(8), pages 1320-1330.
- Roth, Ian F. & Ambs, Lawrence L., 2004. "Incorporating externalities into a full cost approach to electric power generation life-cycle costing," Energy, Elsevier, vol. 29(12), pages 2125-2144.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:1:p:23-39. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.