Operational expenditure costs for wave energy projects and impacts on financial returns

This paper examines 'availability' and the input metrics of operational expenditure (OPEX) for wave energy projects and reports on a case study which assesses the impact of these inputs on project profit returns. Case study simulations modelled a 75 MW wave energy project at two locations; the west coast of Ireland and the north coast of Portugal. Access and availability with respect to weather windows at both locations are discussed and their impact on energy output and wave farm operations is quantified. The input metrics used to calculate OPEX of wave energy projects are defined as well as the impact of OPEX on project net present value (NPV) and internal rate of return (IRR). Results indicate that access and resultant availability factors have a significant impact on case study results by reducing energy output and correspondingly financial returns. Furthermore, the technology maturity level designated for a project also impacts on availability factors and consequently energy output and NPV. Case study profits proved to be very sensitive to annual OPEX, especially if overhaul and replacement costs were accounted for. As a result of the impact of 'availability' on project profit returns. Feed-in tariffs will need to be tailored to the location in question as well as the device technology maturity level, with case study simulations indicating that high FIT will be required to support early stage WEC projects. (C) 2012 Elsevier Ltd. All rights reserved.

Energy conversion: a comparison of fix- and self-referenced wave energy converters

The paper presents an investigation of fix-referenced and self-referenced wave energy converters and a comparison of their corresponding wave energy conversion capacities from real seas. For conducting the comparisons, two popular wave energy converters, point absorber and oscillating water column, and their power conversion capacities in the fixed-referenced and self-referenced forms have been numerically studied and compared. In the numerical models, the deviceâ s power extractions from seas are maximized using the correspondingly optimized power take-offs in different sea states, thus their power conversion capacities can be calculated and compared. From the comparisons and analyses, it is shown that the energy conversion capacities of the self-referenced devices can be significantly increased if the motions of the device itself can be utilized for wave energy conversion; and the self-referenced devices can be possibly designed to be compliant in long waves, which could be a very beneficial factor for device survivability in the extreme wave conditions (normally long waves). In this regards, the self-referenced WECs (wave energy converters) may be better options in terms of wave energy conversion from the targeted waves in seas (frequently the most occurred), and in terms of the device survivability, especially in the extreme waves when compared to the fix-referenced counterparts.