Wave Energy Conversion and Ocean Thermal Energy Conversion Potential in Developing Member Countries

Abstract

Wave energy conversion and ocean thermal energy conversion are two potentially significant sources of renewable energy that are available to help ADB's developing member countries reduce their dependence on fossil-fuel based energy generation and bolster energy security. This report summarizes wave energy conversion and ocean thermal energy conversion information that is available in the public domain for the developing member countries and assesses the viability of using these resources to produce electricity. In addition, the report identifies supplementary resource information that is required for system design and evaluates the development status of the required equipment. It also discusses the degrees of readiness and potential of marine-based renewable energy generation for use in ADB's developing member countries: wave energy conversion and ocean thermal energy conversion. Wave Energy Conversion (WEC) systems are in the pre-commercial phase, with several experimental projects having already demonstrated the ability to convert wave energy into electrical energy but lacking the operational records required to proceed to commercialization. Adequately sized pilot or pre-commercial projects must be implemented to obtain these long-term operational records. In addition, validating performance and survivability of specific WECs under harsh ocean conditions is required to gain commercial acceptance .In theory, ocean thermal resources could be used to generate most of the energy required. The major challenge to Ocean Thermal Energy Conversion (OTEC) implementation is posed by the need to secure financing for a capital-intensive technology without an operational record. How can a developer secure, for example, the more than $750 million for a 100 MW plant without a track record and without invoking national security, global warming, or environmental credits? The next step requires the realistic determination of the costs and the potential global environmental impact of OTEC plants, and this can only be accomplished by deploying and subsequently monitoring operations with first generation plants. Ninety-eight nations and territories with access to the OTEC thermal resource within their 200-nautical mile EEZ have been identified. There is also a market for countries that could manufacture and supply the equipment required for OTEC plants. As outlined in this report, the worldwide resource, for example, is equivalent to plants of at least 7 terawatts or 70,000 plants of 100 MW capacity. Each 100 MW plant will require a capital investment of about $750 million, so the ultimate market, in a few decades, would be valued in the trillions of dollars.