OREG RD Proposal

A PROPOSAL FOR A COLLABORATIVE RESEARCH & DEVELOPMENT PROGRAM FOR ENABLING RENEWABLE OCEAN ENERGY DELIVERY IN BRITISH COLUMBIA
AND CANADA
September 2004
Prepared for:
The Canadian Federal Government The B.C. Provincial Government BC Hydro Corporate Strategic R&D and Other Canadian Electrical Utilities
Submitted by:
The Ocean Renewable Energy Group (OREG) British Columbia
Collaborative R&D Program for Enabling Renewable Ocean Energy Delivery in British Columbia and Canada
EXECUTIVE SUMMARY The recent Pacific Northwest Economic Region Summit adopted a strongly worded resolution that called on the U.S. and Canadian governments to implement strategies for developing ocean energy technology and resources. The resolution calls for strategic initiatives similar to the current focused research, development and demonstration of fuel cells and hydrogen power. The Ocean Renewable Energy Group (OREG) is working toward 5 pre-commercial demonstrations of ocean energy capacity in British Columbia by 2010. OREG proposes a Canadian target of 25 by 25 (at least 25,000 MW by 2025). OREG is also working to ensure that the Canadian ocean energy development, supply and service sector employs at least 10,000 by 2025, with worldwide sales of at least $2 billion. OREG believes that this development is one of the most significant economic, business and sustainability initiatives in the launch of the 21st Century. That recognition is showing internationally in many countries with access to significant wave and tidal resources. Portugal has led with an enhanced power production incentive for ocean energy about to be copied by Ireland. Focused R&D and infrastructure support is being directed at this opportunity in at least six other countries. The most recent was the UK commitment in August 2004 of $125 million which resulted in the formation of the UK Centre for Marine Renewable Energy. Wind energy development, and indeed fuel cells and hydrogen initiatives, are emerging as part of the energy toolbox because of strategic policy and public financial investments made a decade ago. The 2001 initiative by BC Hydro to open a focus on wave energy was recognised internationally for its leadership. OREG is working to build a movement to capitalise on that recognition. In this proposal OREG has identified a significant financial commitment necessary to start a focus on strategic research and create a mechanism to identify and pool the resources that will be necessary to make Canadian business a part of a worldwide sustainable energy industry. If this proposal succeeds in establishing an Ocean Energy Partnership, the challenge will then fall to this partnership to lever this initiative into a strategy to focus existing funding programmes, or launch specific new programmes and initiatives, to:

Create market pull Set a renewable portfolio standard Create support for pre-commercial power purchase initiatives Create a supportive climate Focus funding for ocean energy R, D&D and commercialisation Create of a Centre of Excellence in ocean energy Provide strategic environmental assessments Clear permitting and approvals mechanisms Create a route to market Underwrite grid connection investment Ensure that access and cost to connection do not discriminate against ocean energy Create a favourable climate for investment Provide tax/revenue incentives for power development and purchase Provide incentives for investment in ocean energy
This document shall not be reproduced without the written approval of OREG 2 September, 2004
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OREG brings together industry, academia and government to advocate for the generation of ocean-based renewable energy, and to accelerate the research, development and commercialization of associated new technologies. The group, which includes international and Canadian ocean energy companies and is based in British Columbia, is taking a leadership role in ocean energy development in Canada. There is a growing expectation that renewable energy can reduce greenhouse gas emissions and address shortages in hydrocarbon supplies. The Government of British Columbia is calling for 50% of all new power generation to be "clean". Members of the public who have spoken at review panel hearings on restarting offshore oil and gas exploration in the province present a consistent message: alternative energy is a better option. The Pacific and Atlantic coasts of Canada are blessed with abundant wave and tidal current energy. Many isolated communities on the British Columbia coast need to replace costly dieselbased generation. Distributed ocean energy generation may fulfill regional needs and sell any excess power to utilities through the North American electrical distribution grid. British Columbia is uniquely positioned to move rapidly ahead. The coast offers a comparatively well developed power grid system, land and water tenuring is less complex than in other countries, the expanse of tidal opportunities can offset issues related to intermittent production and a significant population can be serviced in the Lower Mainland and Vancouver Island area. The people who live in the coastal regions of Canada have valuable expertise in marine operations, ocean technology, and marine fabrication, and world-class ocean engineering experimental and test facilities. Unlike power generation using hydro-electricity, natural gas, or even wind, power generation using waves and tidal currents is still in the early stages of development. A wide range of technologies has been investigated, with only a few reaching the stage of pilot power production. In the field of ocean energy development there are no dominant techniques, companies or countries, providing a great opportunity for Canada to excel. To take advantage of this rare opportunity, Canada must make strategic commitments similar to those made by countries like Ireland, the United Kingdom, and Portugal, and by the European Union as a whole. These regions are targeting research, development and demonstration resources, providing capital support, subsidizing the purchase of ocean power, and encouraging investment. Their objective is to produce reliable supplies of ocean power based on solid technology and supported by a strong service and operating industry. OREG is working to ensure that similar strategies will be followed in Canada. In this proposal, OREG proposes a five-year strategic research program that will push forward the development and adaptation of ocean power technologies, mobilizing a collaborative and focused research community. The program will ensure that Canada is part of the international collaborative effort underway to make ocean renewable energy a resource on the scale of hydro-electricity by 2025. Forecasts will be projected for the development of Canadian ocean power supplies, to assist with the planning of future electricity generation requirements.
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The OREG is proposing a five-year R&D program that consists of ten themes: Theme 1the accurate assessment of resources in BC and on the East Coast of Canada Theme 2the advancement of new technologies Theme 3the establishment and operation of pioneer test sites for ocean energy in BC, one for wave power and one for tidal current power Theme 4power quality and improvement through hybrid processes, including secondary storage Theme 5grid interconnection issues Theme 6engineering reliability Theme 7virtual modeling of the process for converting wave/tidal current to electricity, using promising technologies Theme 8the integration of ocean energy technologies with other renewable technologies, such as, offshore wind Theme 9the feasibility of using ocean energy to produce compressed hydrogen Theme 10networking among R&D centres, coordinating activities through IEA and organizing technical conferences OREG will also be involved in the study of integrated energy options for remote communities. Underlying all of this effort is a commitment by OREG to minimize the risk that development and demonstration projects will be delayed or cancelled by ensuring that there is a community of technical, policy and financial support. Canada has policy objectives for renewable energy that include ocean energy, but the existing support mechanisms do not ensure that it becomes a realistic and reliable option. British Columbia has set a target for renewable energy, but has no mechanism to ensure that ocean power builds the technology and infrastructure to contribute to the overall commercial power supply. Leadership in this collaborative initiative is expected to come from the Government of Canada, the Province of British Columbia, and BC Hydro. Other provinces and utilities will join in parts of the research program that involve common interests. BC Hydro considers ocean energy to be a potential solution for power supply to communities that are not connected to the grid, and a potential contributor to distributed generation and sustainability goals. However, they also recognize the technical, financial, and policy challenges to commercialization. To avoid the risk of emerging renewable energy technologies being "marginalized", OREG proposes collaborative financing, direction and evaluation of a focused Research, Development and Demonstration program for 2005-2009. OREG proposes that an Ocean Energy Partnership (OEP) Group be formed to provide overall direction and to provide security for the interests of the funding agencies. The group is expected to be made up of BC Hydro (and possibly other partnering utilities), Natural Resources Canada, the Western Economic Diversification, Environment Canada and Industry Canada, the B.C. Ministry of Mines and Energy (and eventually the resources departments of other provinces), and representatives of OREG. The OEP Group will be responsible for setting priorities among
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the themes identified in the proposal, and any others that it may identify. A detailed description of scope, tasks, deliverables, schedules, and the associated cost for each theme will be developed during the Scoping Stage for final approval by the OEP. The total budget for this initial programme is expected to be approximately $3 million per year for five years. In order for the program to be successful, it is critical that the full budget and the proposed management approach are accepted. OREG believes this programme to be a first focused step. It should lead to additional initiatives and support efforts and direct assistance to ensure that technology and project developers access public and private funds to develop & demonstrate their technologies, and implement projects. End users such as BC Hydro will need to develop specific mechanisms for electricity purchase from near-commercial conversion technologies such as tidal current and ocean waves. These initiatives and activities can be expected as part of a strategy that can be built beyond this proposed collaborative R&D Program.
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TABLE OF CONTENTS Page EXECUTIVE SUMMARY ......................................................................................................... ii 1.0 BACKGROUND ........................................................................................................1 1.1 Ocean Energy Development in Canada and the World ..............................................1 1.2 The B.C. Energy Plan and the Hydro Integrated Energy Plan (IEP).........................2 1.3 The Emerging Focus ...................................................................................................3 1.3.1 PNWER Resolution 2004-8........................................................................................3 2.0 OCEAN ENERGY RESEARCH WORLDWIDE......................................................1 2.1 The Strategic Choices .................................................................................................5 3.0 OCEAN ENERGY POTENTIAL THE VALUE PROPOSITION .........................7 3.1 Resource Estimates .....................................................................................................7 3.1.1 World ..........................................................................................................................7 3.1.2 British Columbia.........................................................................................................8 3.1.3 Power Generation by 2025 .......................................................................................10 3.2 The Development Curve ...........................................................................................10 3.2.1 Technology ...............................................................................................................10 3.2.2 Price of power ...........................................................................................................11 3.3 Meeting Sustainability Agendas ...............................................................................12 3.3.1 Renewable.................................................................................................................12 3.3.2 Footprint....................................................................................................................13 3.3.3 Impact .......................................................................................................................13 3.4 Meeting Economic Development Agendas ..............................................................13 3.5 Meeting Multiple Needs ...........................................................................................14 3.5.1 Generating Electricity ...............................................................................................14 3.5.2 Applying Ocean Energy to the Needs of Remote Communities ..............................14 3.5.3 Integrating Ocean Energy with Other Renewable Energy Sources..........................15 3.5.4 Applying Ocean Energy to Generate Hydrogen .......................................................16 3.5.5 Other Market Opportunities......................................................................................17 4.0 BARRIERS AND CHALLENGES ..........................................................................19 4.1 Technical...................................................................................................................19 4.1.1 Cost ...........................................................................................................................19 4.1.2 ReliabilityWithstanding a Hostile Environment...................................................20 4.1.3 Intermittent Production and Power Quality ..............................................................20 4.1.4 Interconnection Issues for Distributed Generation ...................................................20 4.2 Policy ........................................................................................................................21 4.2.1 "Marginalized" Energy .............................................................................................21 4.2.2 Energy Policies .........................................................................................................21 4.2.3 Lack of a Planning and Permitting Process ..............................................................22 4.2.4 Removal of Institutional Barriers .............................................................................22 4.3 Financial....................................................................................................................23 4.4 Technology Implementation and Commercialization...............................................23 4.5 Scaling Up.................................................................................................................24
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5.0 COLLABORATIVE R&D TO MEET CHALLENGES AND OVERCOME BARRIERS .................................................................................................................................25 5.1 Initiatives and Priorities ............................................................................................25 5.2 Fit With National and B.C. Priorities .......................................................................28 5.3 Collaborative R&D Projects Proposed by OREG ....................................................29 6.0 PROPOSED PROGRAM .........................................................................................31 6.1 Theme 1: Assessment and Monitoring of Ocean Energy Resources........................31 6.1.1 Resource Assessment................................................................................................31 6.1.2 Wave and Tidal Current Monitoring ........................................................................31 6.1.3 Production Estimation...............................................................................................32 6.2 Theme 2: Advancing New Technologies.................................................................32 6.3 Theme 3: Establish Test Sites for Ocean Energy ....................................................32 6.3.1 Site Availability ........................................................................................................32 6.3.2 Facilitating Research, Development And Demonstration Projects ..........................34 6.4 Theme 4: Investigating Power Quality; Improvement Through Hybrid Power Generation, or Secondary Storage ..........................................................................................34 6.5 Theme 5: Grid Interconnection.................................................................................35 6.6 Theme 6: Reliability Engineering.............................................................................35 6.6.1 Structural...................................................................................................................35 6.6.2 Mechanical Systems .................................................................................................37 6.6.3 Mooring ....................................................................................................................38 6.6.4 Electrical Connection................................................................................................38 6.7 Theme 7: Virtual Modeling of the Wave/Tidal Current to Electricity Conversion (VMWTEC) Process of Relevant Technologies.....................................................................38 6.8 Theme 8: Demonstration and Integration with Other Renewable Technologies.....38 6.9 Theme 9: Feasibility of Utilization of Ocean Energy for Hydrogen Production......39 6.10 Theme 10: Networking with IEA, EU, and Other R&D Centres; Organizing Relevant Technical Conferences............................................................................................................39 6.11 Approach to Intellectual Property.............................................................................40 6.12 Provisional Milestones and Budget ..........................................................................40 6.13 Program and Funding Partners .................................................................................45 6.13.1 Government of Canada Involvement ........................................................................45 6.13.2 Government of British Columbia Involvement ........................................................46 6.13.3 BC Hydro Involvement.............................................................................................47 6.13.4 Funding Sources .......................................................................................................48 6.13.5 Tentative Task Partners for the Collaborative R&D ................................................49 6.14 Program Direction and Management ........................................................................51 6.14.1 Ocean Energy Partnership (OEP) Group ..................................................................51 6.14.2 Program Management Process..................................................................................51 6.14.3 Placement of Operation.............................................................................................52 7.0 REFERENCED DOCUMENT SOURCES ..............................................................53 APPENDIX The Ocean Renewable Energy Group (OREG) .....................................................55
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LIST OF FIGURES Figure 1: Range of Unit Energy Costs (2003 Status) [Ref. 3] ................................................... 2 Figure 2: Forms of Ocean Energy and Estimated Global Power [ Ref. 12] ............................... 7 Figure 3: Global Wave Power Distribution (kW/m of crest length) [Ref. 8] ............................. 8 Figure 4: Available Wave Power for the B.C. Coast (in kW/m), Based on 1991 Data [Ref. 9] 8 Figure 5: Potential Tidal Energy Sites in British Columbia [Ref. 11]........................................ 9 Figure 6: Implementation Curves of Wind and Wave Energy [Ref. 13] .................................. 10 Figure 7: Learning Curves for Power Generation Technologies to 2030 [Ref. 14] ................. 11 Figure 8: Predicted Reduction of Electricity Costs for Wave Energy Technologies [Ref. 15] 12 Figure 9: A Range of Uses for Ocean Energy [Ref. 36]........................................................... 14 Figure 10: Funding Gap [Ref. 22]............................................................................................. 23
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1.0
BACKGROUND
1.1 Ocean Energy Development in Canada and the World The Conference Board of Canada [1] recently reported that renewable energy remains a growth market, with installed capacity expected to double over the next decade in the United States and Canada. Most renewable options are expected to be competitive with grid power in Canada by 2013, especially if supported with effective incentives. The report also concludes that remote areas of Canada that do not have a connection to the electrical grid are ideal for first applications of proven but not yet commercial renewable technologies. However, the Conference Board of Canada anticipates that the costs of renewable resources such as photovoltaics, tidal, wave, and fuel cells must be reduced and the technologies improved before they will be adopted for widespread use. Their overall conclusion is that there are opportunities and challenges in moving forward and defining a Canadian strategy for renewables. Comprehensive strategies are needed, developed through an increase in inter-governmental co-ordination and co-operation. Incentives and partnerships that can bring renewable energy technologies to self-sufficiency and commercialization must be supported, and mechanisms must be established to recognize the environmental, economical and efficiency attributes of renewable energy. While the comments of the Conference Board of Canada apply to all emerging energy supplies, they are particularly relevant to ocean energy. The worldwide pursuit of ocean energy has developed more slowly than many of the alternatives. However, in the last few years several European countries and the European Union have begun to focus their development efforts in the field of ocean energy. For example, it has become a theme of the International Energy Agency. In order to ensure that Canada shares in the progress gained, and in the absence of a national or regional ocean energy organization in Canada, Powertech Labs has represented Canada at the Executive Committee of the International Energy Agency Implementing Agreement on Ocean Energy Systems IEA-IA-OES. Other international initiatives to develop ocean energy are underway. Canadian ocean energy technology companies are pursuing demonstration opportunities in Europe. Companies from Australia and the United States are working in British Columbia, having been attracted by BC Hydro renewable energy programs and recognizing the wave energy potential and the strong electricity markets of the region. Driven by commitments to environmental responsibility and climate change mitigation, the Government of British Columbia is currently creating a new Alternate Energy Strategy that will focus on all forms of alternate energy, identifying their technical and market barriers. The province aims to be a leader in energy efficiency and promoting opportunities for alternate energy. The development of ocean energy resources could play a large role in achieving those goals. There are no clearly dominant technologies in the ocean power arena. Despite significant assistance for programs in the United Kingdom and other countries, Canada still has an opportunity to be a significant player. The marine current and wave climates on the east and west
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coasts of Canada are a strategic advantage. Existing strengths in ocean science and technology, world-class testing facilities and well-established ocean engineering, design, fabrication and marine operations capabilities will prove critical. A coordinated effort can ensure that Canada has access to renewable ocean energy and is a leader in the world market for ocean energy equipment, services and operations. Leadership of that coordinated effort is emerging in British Columbia. 1.2 The B.C. Energy Plan and the Hydro Integrated Energy Plan (IEP) British Columbia's Energy Plan [2] sets a voluntary goal of 50% of supplies of new energy from "Clean Electricity" sources, although the definition of clean electricity is broad and does not mention ocean energy. The clean electricity objective is constrained by the expectation that additional costs to produce it will increase electricity rates by less than 0.2% per year. BC Hydro responded to the BC Energy Plan policy with an Integrated Energy Plan (IEP) [3], which evaluated sources of alternate energy using a framework of performance criteria and cost estimates based on currently available approaches. The performance criteria were:
Capacity (nameplate or gross capacity) Dependable capacity (reliable for three hours in the peak load period, weekdays during two continuous weeks of cold weather) Annual average energy (expected production over the period of a year) Firm energy (production that could be relied upon during a given year)
Figure 1: Range of Unit Energy Costs (2003 Status) [Ref. 3]
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The BC Hydro IEP used a dependable capacity rating of only 5% in estimating cost of energy production from ocean energy resources, such as, tidal current and wave. The results of their assessment of the relative costs (2003 status) of producing energy, including wave and tidal power, are shown in Figure 1. As part of a four-year action plan, the 2004 IEP identifies initiatives to be taken in the short term. Two of these initiatives are particularly relevant to ocean energy technology: To provide the planning justification for private sector calls for electricity, and other resource acquisitions, and To demonstrate how environmental, social and economic considerations are included in BC Hydros electricity planning.
Research into ocean energy technologies and their commercialization contributes to both initiatives. It provides an opportunity for entrepreneurs and technology developers to contribute to the energy resource portfolio. Ocean energy is considered to be environmentally benign, and research into its potential provides an opportunity for the utility company to demonstrate planning for various social and economic conditions. 1.3 The Emerging Focus Powertech Labs initiated a dialogue among representatives of the Canadian Federal Government, the B.C. Provincial Government and BC Hydro about coordinated activities and strategies for enabling ocean energy development in the province. As part of this effort, in 2003 Powertech Labs made a series of presentations at national and regional forums and held various meetings with individual technology/project developer in BC and other local organizations. In the winter of 2004, these stakeholders were brought together with interested federal and provincial agencies, researchers and R&D support organizationsa "cluster" of key players who could push ahead with ocean energy opportunities. A not-for-profit organization was formed, called the Ocean Renewable Energy Group (OREG). Its mandate is to move the ocean energy agenda forward. The vision, mission and structure of OREG are summarized in the Appendix. At the recent Pacific North West Economic Regional (PNWER) Summit, a special session on Ocean Power was held as part of the Energy II - Emerging Technology track [4]. OREG, along with the other organizations from BC, Washington, and Alaska, presented an assessment of ocean energy potential and the steps needed to realize it. Legislators who attended the session were impressed, and adopted the following resolution: 1.3.1 PNWER Resolution 2004-8 Just as the Pacific NW plays a leadership role in the hydrogen and fuel cell technology development, the region has the potential to lead in the technology development and production of renewable energy from the ocean. Resource assessments show that Ocean Energy has a potential to play a major role in achieving a goal of 20% of electricity generation from renewable energy sources by 2020 for PNWER members.
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1.3.1.1 Action Items: 1. PNWER urges Federal governments of Canada and the United States to implement a national Ocean Energy Strategy. 2. PNWER recommends to both federal governments to promote the development and use of Ocean Energy technologies. Specific provisions of this recommendation should include: - Federal recognition of Ocean Energy as a renewable resource; - Creation of an Ocean Energy program within the relevant Energy and Economic development departments; - Streamlining of regulatory process for approval of Ocean Energy projects; - Market incentives to spur investments in Ocean Energy technologies and projects, like investment credits, production tax credits, renewable energy credits, and alike; - Federal funding sources for R&D and demonstration projects; - Ask federal governments to establish pilot test areas for ocean energy development. This resolution and the work that is underway to implement a B.C. Strategy for Alternate Energy are raising awareness of the opportunity that ocean energy presents.
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2.0
OCEAN ENERGY RESEARCH WORLDWIDE
The International Energy Agency (IEA) published a summary of the state-of-the-art in wave energy research in their 2003 annual report [5]. Their review looked at the progress in research by country and by technology. The essential points are abstracted below. It can be said that research in wave energy conversion based on adequate scientific background started in the 1970s when the oil crises provoked the exploitation of a range of renewable energy sources, including waves. Based on various energy-extracting methods, a wide variety of wave energy systems has been proposed but only a few full-sized prototypes have been built and deployed in open coastal waters. Most of these are or were located on the shoreline or near shore, and are sometimes named first generation devices. In general these devices stand on the sea bottom or are fixed to a rocky cliff. Shoreline devices have the advantage of easier maintenance and installation and do not require deep-water moorings and long underwater electrical cables. The less energetic wave climate at the shoreline can be partly compensated by natural wave energy concentration due to refraction and/or diffraction (if the device is suitably located for that purpose). The typical first generation device is the oscillating water column (OWC). Offshore devices (sometimes classified as third generation devices) are basically oscillating bodies, either floating or (more rarely) fully submerged. They exploit the more powerful wave regimes available in deep water (typically more than 40m water depth). Offshore wave energy converters are in general more complex compared with first generation systems. This, together with additional problems associated with mooring, access for maintenance and the need of long underwater electrical cables, has hindered their development, and only recently some systems have reached, or come close to, the full-scale demonstration stage. The oscillating water column (OWC) device comprises a partly submerged concrete or steel structure, open below the water surface, inside which air is trapped above the water free surface. The oscillating motion of the internal free surface produced by the incident waves makes the air to flow through a turbine that drives an electrical generator. Full sized OWC prototypes were built and tested under real sea conditions in Norway (in Toftestallen, near Bergen, 1985), Japan (Sakata, 1990), India (Vizhinjam, near Trivandrum, Kerala state, 1990), Portugal (Pico, Azores, 1999), UK (the LIMPET plant in Islay island, Scotland, 2000). In all these cases, the concrete structure is fixed (bottom-standing or built on rocky sloping wall). The installed power capacity of these prototype OWCs is (or was) in the range 60-500 kW. Smaller shoreline OWC prototypes were built in Islay, UK (about 1990), and recently in China. The so-called Mighty Whale, built in Japan a few years ago, is in fact a floating version of the OWC. In an OWC plant, the energy conversion chain consists of the following elements: wave to air (in which the structure containing the oscillating water column plays a major role); air turbine; electrical generator (and complementary electrical equipment). The integration of the plant structure into a breakwater has several advantages: the constructional costs are shared, and the access for construction, operation and maintenance of the wave energy plant become much
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easier. This has been done successfully for the first time in the harbour of Sakata, Japan (in 1990). The option of the 'breakwater OWC' is presently being considered for several situations in Europe. Several types of air turbines have been proposed for (and in some cases used in) OWCs. The axial-flow Wells turbine, invented in the late 1970s, has the advantage of not requiring rectifying valves. It has been used in almost all prototypes. The most popular alternative to the Wells turbine seems to be the self-rectifying impulse turbine; its rotor is basically identical to the rotor of a conventional single-stage steam turbine of axial-flow impulse type (the classical de Laval turbine). An Australian company (Energetech) proposes a technology using a parabolic-shaped collector (about 40-metre wide) to concentrate the wave energy upon the OWC structure. The system uses a self-rectifying air turbine that is different from the Wells turbine and the impulse turbine but shares some features of both. The Energetech OWC system was conceived originally as a bottom-standing structure, but a floating version is presently being built at Port Kembla, near to Sydney, Australia. The Pendulor was originally developed in Japan as a shoreline device. Its main element is a hinged rectangular plate facing the waves, whose pendulum-like oscillations drive a high pressure hydraulic power-take-off system. A floating version of the Pendulor is presently being developed in Japan. There is a substantial variety of typically offshore wave-energy devices, some of which reached, or are close to, the prototype stage. In most cases, there is a mechanism that extracts energy from the relative oscillating motion between two bodies. This is the case of the Pelamis, developed in UK, a snake-like slack-moored articulated structure composed of four cylindrical sections linked by hinged joints, and aligned with the wave direction. The wave-induced motion of these joints is resisted by hydraulic rams, which pump high-pressure oil through hydraulic motors driving three electrical generators. Sea trials of a full-sized prototype (120 m long, 3.5 m diameter, 750 kW rated power) started in the North Sea in March 2004. The McCabe Wave Pump, developed in Ireland, has conceptual similarities to the Pelamis: it consists of there rectangular steel pontoons hinged together, with hydraulic rams converting their relative motions into useful energy. The Archimedes Wave Swing (AWS), basically developed in Holland, is a fully-submerged device consisting of an oscillating upper part (the floater) and a bottom-fixed lower part (the basement). The floater is pushed down under a wave crest and moves up under a wave trough. This motion is resisted by a linear electrical motor, with the interior air pressure acting as a spring. A prototype of AWS was built, rated 2 MW (maximum instantaneous power). The device has been sunk to position off the north coast of Portugal recently. The AquaBuOY combines two concepts developed in Sweden in the 1980s: the IPS buoy and the hose pump. The Aquabuoy consists of a slack-moored vertical-axis buoy, about 7 m diameter, whose heave oscillations produce high-pressure water flow by means of a pair of hose pumps. This is converted into electrical energy by a conventional water turbine driving an electrical
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generator. Plans to build a prototype have been announced. Another system based on a heaving buoy is the Wavebob, a basically Irish concept that is being developed in Europe. The Wave Dragon, an offshore floating system mostly developed in Denmark, is based on the overtopping concept rather than on the oscillating body concept. The system consists of a floating slack-moored platform with two long arms acting as wave reflectors to focus the waves towards a ramp. Behind the ramp there is a reservoir where the overtopping water is collected and temporarily stored. The power take-off equipment consists of a series of conventional lowhead propeller-type water turbines each one driving an electrical generator. A 1:4.5-scale model, 57 m-wide, equipped with 7 turbines, was constructed. The model tests, that included power generation to the grid, started in 2003 off the Danish coast in the North Sea. Like the Mighty Whale referred to above, the Backward Bent Duct Buoy (BBDB) is a floating version of the OWC that has been object of considerable interest and development, first in Japan, and more recently also in Europe (namely in Ireland). Unlike in the case of wind energy, the present situation shows a wide variety of wave energy systems, at several stages of development, competing against each other, without it being clear which types will be the final winners. In the last ten years or so, most of the R&D activity in wave energy has been taking place in Europe, largely due to the financial support and coordination provided by the European Commission and to the positive attitude adopted by some European national governments. In general, the development, from concept to commercial stage, has been found to be a difficult, slow and expensive process. The final stage is testing under real sea conditions. In almost every system, optimal wave energy absorption involves some kind of resonance, which implies that the geometry and size of the structure are linked to wavelength. For these reasons, if pilot plants are to be tested in the open sea, they must be full-sized structures. For the same reasons, it is difficult, in the wave energy technology, to follow what was done in the wind turbine industry (namely in Denmark): relatively small machines where developed first, and were subsequently scaled up to larger sizes and powers as the market developed. The high costs of constructing, deploying, maintaining and testing large prototypes under sometimes very harsh environmental conditions, has hindered the development of wave energy systems; in most cases such operations were possible only with substantial financial support from governments. There are two generic ways of extracting energy from tidal flows: by placing a barrage across an estuary with a large tidal range to create static head and operate a low head water turbine or by extracting kinetic energy of tidal (marine) current to mechanical energy using different types of turbine without interrupting the natural tidal flow. Tidal currents are caused by the movement of oceans, driven by the gravitational fields of the earth, sun, and moon. Large tidal currents do not necessarily require a large tidal range. The factors that have a greater influence on the magnitude of tidal currents are the phasing of the tides (location and timing of high and low tides) and the constriction of the water through narrow passages (concentration of tidal flow). Since British Columbia has a wide range of tidal phases and numerous narrow passages, tidal currents are of great interest as an energy source.
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There are several large tidal barrage plants, including one in Nova Scotia, in operation in the world. Even though the conversion technology is mature, any new project based on this scheme is less likely to happen in Canada because of environmental concern and disruption to navigation associated with this type of plant. Technologies for generating electricity from tidal current are under active development and some new approaches are being proposed. Most of the current conversion devices can be classified into three categories: (a) axial flow turbines, (b) cross flow turbines, and (c) ducted turbine. This type of conversion process has a turbine installed in the tidal stream. Kinetic energy is transferred to the turbine, which drives a generator that converts the kinetic energy into electricity. The axial flow tidal current turbines are similar to wind turbines, with fixed blades that rotate in the current. This type of tidal current conversion process has been or being demonstrated upto a capacity level of 300kW. Recently built projects using this type of conversion process are the Seaflow project at the Severn Estuary off Devon, UK, by the Marine Current Turbines and the Hammerfest Strom project in Norway. Cross flow current turbines are placed in a tidal stream in such a way that direction of current is across the axis of rotation of turbine. In Canada, this type of tidal current conversion technology has been demonstrated in early 80s through prototype testing. Recently, a project (called Enermar) involving this type of conversion process (called kobold turbine) is being demonstrated in Italy in the Strait of Messina. The turbine, which has three blades and is rated at 130 kW, is suspended from a float. In US, cross flow turbine with helical blades has been developed by Prof. Gorlov. Prof. Salter in UK has proposed a cross flow tidal current turbine also. The conversion process using a ducted turbine involves placing a turbine in a duct to augment the power extracted from a given sized turbine. This concept was first proposed by Darrieus. In British Columbia, Blue Energy Canada has proposed a variant of this type of conversion process for a cross-flow turbine. Other types of tidal current conversion process have been proposed or are being demonstrated. One approach uses the pressure differential in a Venturi flume to drive a fluid (air or water) through a conventional pipeline turbine that can be located on the shore. Another approach to generating electricity from tidal current is by utilizing lift force induced by hydrofoil. This device, called Stingray, is being demonstrated in UK. New turbine conversion technologies are being developed by Clean Current Power Systems in Canada and Florida Hydro Power in US. The United Kingdom is at the forefront of the development of the tidal current energy conversion process, and predicts that they will have full-scale demonstration plants by the end of 2004. Two of the most advanced prototypes, currently supported under the DTI Renewable Energy Research and Development Program, are the "Stingray" and the "Seaflow" projects. As mentioned in the previous paragraph, tidal current demonstration projects have been built in UK, Norway, and Italy. Companies in British Columbia are also making significant contributions with their designs. For example, Blue Energy is planning on building a 500kW demonstration project using their ducted
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cross-flow turbine technology. Similarly, Clean Current Power Systems is planning on a demonstration project using their turbine technology. 2.1 The Strategic Choices The Irish government, in a public consultation document [6], has suggested that a country is faced with three choices: Option 1focus on the development and deployment of indigenous ocean energy technologies with a view to stimulating the development of a world leading ocean energy manufacturing industry. Option 2accept that the risk involved in attempting to develop indigenous technology leadership and an export industry in wave and tidal energy may be too great to justify the level of support needed. A commitment to develop ocean energy without a specific focus on developing an indigenous solution provides a means to adapt technology to use local resources, and may result in the development of research excellence supporting an exportable technology industry Option 3simply maintain a watching brief in the field of wave and tidal energy and adopt any emerging technology. European countries that have access to significant ocean energy resources are clearly pursuing the first of these options. In August 2004, the United Kingdom committed an additional $125 million to lever ocean energy forward [7].
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3.0 3.1
OCEAN ENERGY POTENTIAL THE VALUE PROPOSITION Resource Estimates 3.1.1 World The oceans are an enormous energy resource, with excellent market potential for clean, renewable and sustainable energy. The possible sources of ocean energy are shown in Figure 2. Two of the most promising sources are marine currents, which are caused by tidal effects and thermal and salinity differences, and ocean waves, which are generated by the action of wind blowing over the ocean surface. The total power of marine currents is estimated to be 5 TW, which is of the same order as global electricity consumption. An important positive factor for the commercialization of tidal currents is their predictability. Ocean waves also show promise, with the global wave power potential estimated to be 1 to 10 TW.
OCEAN ENERGY
TIDES (0. 03 TW)
MARI NE CU RRENTS (5.0 TW)
THERMAL GRADI ENT (2.0 TW)
SALINI TY G RADIENT (2. 6 TW)
WAVES (1 to 10 T W)
Figure 2: Forms of Ocean Energy and Estimated Global Power [ Ref. 12] Canada's east and west coasts are areas of strategic opportunity due to the availability of high wave energy potential, as shown in Figure 3.
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Figure 3: Global Wave Power Distribution (kW/m of crest length) [Ref. 8] 3.1.2 British Columbia The coasts of mainland British Columbia and Vancouver Island have the potential to supply a major portion of the ocean energy resource. A preliminary assessment of wave energy on the west coast of Vancouver Island (as shown in Figure 4) indicates an average near-shore power level of 33 kW/metre of wave front, and a total incident wave power of ~8.25 GW.
Figure 4: Available Wave Power for the B.C. Coast (in kW/m), Based on 1991 Data [Ref. 9]
An inventory of tidal current resources prepared for BC Hydro has identified 55 sites with currents exceeding 2m/s (most of them on the mainland coast, as shown in Figure 5), with a total power availability of more than 2,000 MW [10].
Figure 5: Potential Tidal Energy Sites in British Columbia [Ref. 11] In British Columbia, some of the highest-velocity tidal current flows occur through the passages between the Strait of Georgia and Johnstone Strait. The tidal range is moderate (five metres), but the tides from the Pacific through Johnstone Strait are roughly 180 degrees out of phase with the tides entering the Strait of Georgia from the southern end of Vancouver Island. This phase difference may mean that tidal currents in B.C. could provide a more consistent source of electricity than typically provided by single-phase tidal projects [3].
3.1.3 Power Generation by 2025 In Europe, it has been forecast that wave energy alone might equal the world contribution from large-scale hydro by 2025. A recent strategy document by the Canadian Federal Government [34] estimates that power production in Canada from ocean waves could be 2,000 MW by 2025. The National Energy Board of Canada [35] forecasts that tidal developments in British Columbia, Nova Scotia and New Brunswick could produce 21,000 MW by 2025. It is difficult to forecast accurately, however, since the efficiency of energy capture remains to be proven and large-scale ocean energy plants with distribution networks have yet to be developed. The rationale for pursuing tidal currents and ocean waves as energy sources is driven by the size of the resource, its renewability and its reliability. It will add valuable diversification, increasing the security of the overall power supply. Ocean energy is largely independent of fuel supply cost risks, and may in fact be critical in the emergence of supplies of hydrogen as fuel. 3.2 The Development Curve 3.2.1 Technology Forecasting of technology development is a highly speculative activity, especially for a long-term time horizon. However, considerable efforts are being made to improve the modeling of technology development within energy models [14]. Wind power is the world's fastest growing energy source (see Figure 6). It has increased in excess of 30% annually for the past five years. At the beginning of 2004, worldwide wind-generated capacity exceeded 39,000 MW. It is expected to be 95,000 MW by 2008 and 194,000 MW by 2013. In February 2004, Canada's installed wind energy capacity was only 327 MW, but if Canada eventually fulfills 20% of its electricity needs from wind energy as other countries have been able to do, its wind energy capacity will reach 50,000 MW.
Figure 6: Implementation Curves of Wind and Wave Energy [Ref. 13]
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The chart on the right in Figure 6 shows the short-term ocean wave power generation forecast by the European countries. Canada projects 23,000 MW of wave and tidal energy generation by 2025. Clearly, it will take a decade or more of development before ocean energy can approach this target, even when commercial scale technologies become available. The challenge will be to accelerate the development and implementation curves through a coordinated effort in research, development and demonstration. 3.2.2 Price of power The costs of energy generated from the ocean (wave and tidal current), as shown in Figure 1, are constrained by the pre-commercial status of the conversion technologies. In some cases, these costs are significantly higher than current conventional energy sources. Yet technological breakthroughs may occur for emerging energy technologies. Models have been developed to estimate the amount of additional R&D necessary to bring about accelerated technological progress for a technological cluster. Such progress would have an influence on conversion efficiency and total investment cost, and thus on the cost of energy over the long term. The positive effect of learning by doing, along with the impact of R&D on technology development, yields projections of steadily reducing costs for various power generation technologies. These projections are consistent with historical trends, as shown in Figure 7.
Figure 7: Learning Curves for Power Generation Technologies to 2030 [Ref. 14] Wind power production costs have been decreasing at 4% per year through the last decade. The initial capital cost per kW in 1980 was about $2,800/kW, and it decreased to about $1,000/kW in 1995. In the United States, the average wind energy cost of
electricity (in 2000 dollars) fell from 47 cents/kWh in 1981 to 5.1 cents/kWh in 1995. This trend has been similar for most emerging energy technologies [16]. The European Wave Energy Thematic Network believes that wave energy development is beginning to show a similar curve, as shown in Figure 8 [17]. However, ocean energy prices are difficult to forecast in the absence of a greater body of research, development and demonstration. With adequate investment in R&D and with more installations of precommercial renewable technologies such as wave or tidal current power generators, the energy price will progressively drop, i.e., the 2003 estimates of energy price ranges (as shown in Figure 1) for generating electricity from tidal current and wave resources will shift left in the figure. Whereas, within the same time frame, the estimated energy price ranges for generating electricity from coal and natural gas are likely to increase and will shift towards right in the figure. Adequate R&D investment will enable reducing the time required to make the pre-commercial technologies to be competitive.
Figure 8: Predicted Reduction of Electricity Costs for Wave Energy Technologies [Ref. 15] 3.3 Meeting Sustainability Agendas 3.3.1 Renewable Wave and ocean current energy is infinitely renewable. Many ocean currents are continuous, only subject to weather-induced seasonal and annual variations in strength. Tidal currents vary in strength and direction every day, every month and every year, but the variations are almost totally predictable. With wave energy, the wave heights, wavelength and direction change with the seasons and with the prevailing weather, but hindcasts and forecasts mean that some level of predictability will be possible.
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It is likely that ocean power plants will be able to operate without regular use of fossil fuels and with minimal use of consumables that depend on fossil fuels. Fossil fuels and other non-renewable resources will be used in the manufacture of facilities, but will be typical of other industrial facilities and will be a one-time occurrence. 3.3.2 Footprint The energy footprint factor has yet to be established. It may vary between areas and among technical approaches. The area needed for an ocean power plant is expected to be smaller than a wind or photovoltaic plant of similar capacity due to the higher energy density of wave and tidal current resources. Ocean energy plants are usually floating moored structures with low visible impact and limited exclusion areas, or are structures built on the ocean floor in relatively shallow water (<50 m). 3.3.3 Impact Structures built on the ocean floor will displace small areas of marine habitat, and floating structures that are moored will disturb yet smaller areas. The exclusion zones around ocean power structures will have a minor impact on any fishing industry in that area. Ocean power plants and their exclusion zones are expected to become "artificial reefs" that will enhance biological productivity in the area. The impact of capturing some of the incident current or wave energy will need to be assessed for each installation, but it may be expected that the total loss in incident energy on a coastline would be marginal [18]. 3.4 Meeting Economic Development Agendas Development, installation and operation of ocean energy plants will mainly occur in remote regions of the British Columbia coast. Support for these activities will create opportunities for workers and businesses in the coastal communitiespart of the B.C. Heartland. Businesses in these communities have provided similar support to resource industries in the past. Development of ocean energy will be a stimulus to marine environmental, construction, installation and operations businesses, civil and mechanical engineering companies, and machine and fabrication shops. The technical support needed for startup and ongoing operations will be a significant stimulus to British Columbia's maritime sector. But there is an even greater opportunity. Just as Germany and Denmark have become world leaders in wind energy technology, Canada has the opportunity to be a major player in the supply of technology, systems and services to the world initiative to develop ocean power.
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3.5 Meeting Multiple Needs Ocean energy will be a boon to the coastal regions of Canada. It will supply distributed power to the grid, ease transmission constraints, and meet local energy requirements, as shown in Figure 9. It will also provide an economic boost through job creation.
Grid C onnec ted Dis tributed Gene ration of Ele ctr ic ity
Rem ote Electrification, Prod ucti on of P otabl e Water thro ugh desal ination
P roduc tion of Compr ess ed Air for Aqua cultur e
H ydrogen Pr oduction
O cean Renewable Energy
Inte gr ating with Othe r Rene wa ble , such as , Offshor e Wind for C os t optimization
For Potential Offs hore Oil & Gas Indus try: Powering the Sa tellite Wells Us ing the Elec tricity from the Offshore Wav e Plant
Figure 9: A Range of Uses for Ocean Energy [Ref. 36] 3.5.1 Generating Electricity Ocean energy resources off the outer coasts of Canada and within the inner coastal regions could be harnessed to generate electricity. The generation could be gridintegrated distributed generation or non-integrated for remote locations and offshore oil and gas platforms. 3.5.2 Applying Ocean Energy to the Needs of Remote Communities Ocean energy has the potential to be a very significant energy resource for remote communities in Canada, as well as in developing nations worldwide. Canada has more than 300 communities that are not connected to an electrical grid or to natural gas networks. Many of these remote communities depend on oil or diesel fuel for electrical generation. Due to the high cost of transporting these fuels, energy costs can be up to 10 times greater than those in urban centres. Since 1998, NRC Canada and Renewable Energy for Remote Communities has been addressing this problem through their Renewable Energy Strategy. The Canadian federal government is working in partnership with the utility industry, the renewable energy industry and northern Canadians, including Aboriginal communities, to develop project implementation tools and to support information transfer of renewable energy technologies that will facilitate the selection and implementation of renewable energy projects.
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Another market opportunity for ocean energy is desalination plants, which generate potable water for remote communities and developing nations. Fresh water is produced through an osmotic process, using a technology such as the McCabe Wave Pump. This wave pump, which is being demonstrated in Ireland, is designed to operate either as a generator for electricity or to desalinate seawater. Another application for wave energy is compression of gases such as air or oxygen for use in aquaculture, as is done in Japan. Ocean energy plants may also supply power to remote cottages, agricultural properties, aquaculture operations, tourist lodges, telecommunications sites, and so on, as well as providing cathodic protection for oil and gas operations. Ocean power could reduce dependence on diesel generators, which are expensive to run and have a considerable impact on the environment. Diesel-generated electricity in remote areas of Canada produces about 200,000 tonnes of GHG emissions every year. A significant proportion of these emissions could be reduced by switching to cost-effective, clean and renewable sources of electricity, such as micro-hydro, small wind, and solar photovoltaics, and in the case of coastlinesocean energy. Most ocean energy systems will be designed to run with a diesel generator back-up, but the goal is to reduce reliance on expensive and polluting petroleum fuels, to address environmental and economical concerns in rapidly growing northern communities, and to provide affordable power as an economic stimulus. 3.5.3 Integrating Ocean Energy with Other Renewable Energy Sources A renewable energy source combined with a fossil fuel energy source is one kind of hybrid energy supply, but there are other possibilities. Developers have demonstrated hybrids that use ocean energy with other renewables such as wind and solar. Hybrids have the potential to improve the use of sub-sea power connections and to raise the ratio of output to construction cost. For example, Ecofys in the Netherlands has proposed a combination of wind and wave sources, and the Osprey wave power plant in the United Kingdom (which was destroyed in a storm) was designed to also be a mounting platform for offshore wind turbines. It claimed to be the first hybrid wind-wave device. A wind and wave hybrid in Nantucket is in the planning stages, but has been stalled by the public approval process. The Canadian coast provides an excellent opportunity to explore the feasibility of facilities that combine offshore wind with offshore waves to generate electrical power, and to address issues such as potential storm damage and public perception. A large offshore wind project has been proposed in BC [37]. Feasibility of harnessing ocean energy along with the offshore wind through the development of hybrid structure could be examined as part of this proposed project.
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3.5.4 Applying Ocean Energy to Generate Hydrogen Renewable sources of energy like solar, wind, tidal and waves cannot be controlled to provide direct, continuous base-load power or even peak-load power when it is needed. In practical terms they are limited to ~20% of the capacity of an electricity grid. The sun affects all ocean activity, the tides are driven by the gravitational pull of the moon, and the waves are driven by the winds. The availability of ocean energy therefore depends on the weather, local climate and time of day. As a result, ocean power plants may be intermittent sources of energy. If there were some way that large amounts of electricity from intermittent producers such as solar, wind, tides and waves could be stored efficiently, the contribution of these technologies would instantly become viable. In the case of ocean energy, this drawback is offset by the secondary storage systems inherent to many ocean energy conversion processes. Nevertheless, it makes sense to combine ocean energy generation with an energy carrier (fuel) such as hydrogen. Many are hoping that hydrogen will one day replace oil, not only for environmental reasons, but also for political and national security reasons. But where will all the hydrogen come from? Currently, there are petroleum-based ways of generating it, but ultimately these defeat the long-term goals of avoiding climate change, protecting the environment, and having a national source of energy that we can depend on. Electrolysis in a fuel cell is a clean way of generating hydrogen, but it is currently more economical to sell our excess electricity than use it to make hydrogen. That may change if the newly emerging hydrogen economy flourishes. The hydrogen economy is expected to provide a significant business opportunity for all forms of renewable energy, and will demand the optimal use of all power generated from each system. Renewable energy sources such as solar, wind, and ocean are ideal for producing hydrogen by electrolysis, because we can utilize the hydrogen as an energy carrier to transform and store the converted energy. The advantage of marrying ocean energy and hydrogen generation is that while ocean energy is stochastic in nature and electrical energy cannot be stored, hydrogen energy can, like a battery, store converted electrical energy until it is needed. When ocean energy is abundant or at its peak, it can be used to generate hydrogen, which is then stored for use when the ocean energy is at a low point. Other opportunities provided by combining ocean energy with hydrogen production include: Problems in connecting with an electricity grid can be avoided, along with the cost of installing a sub-sea cable, by using retired offshore platforms to convert ocean energy to electricity and hydrogen. The hydrogen produced using ocean energy can be stored and shipped via pipeline, tanker or cryogenic bulk carrier anywhere in the country, or the world. Not only can ocean energy be used to generate hydrogen; it can pressurize it as well. In order to be an efficient fuel, hydrogen must be compressed to very high pressures.
Ocean energy can be used to pressurize the gas up to 15 bars, which increases the efficiency of the compression process. A fuel cell hybrid can be a self-sufficient power system, integrating hydrogen fuel cell technology with ocean energy technology. Unused power from a tidal energy generator can produce hydrogen through electrolysis, which a fuel cell will convert into electricity as needed. Such a system uses no fuel and creates no pollution, and would be of interest to ecologically minded communities and resorts. It would also benefit rural communities that do not have electricity, both in Canada and in developing nations. As well as powering a fuel cell, hydrogen produced by this fuel cell hybrid can be used for transportation, providing economic benefits and increased self-sufficiency for communities.
3.5.5 Other Market Opportunities Developers of ocean energy technology will transfer technology and know-how from the existing offshore oil and gas industry to the new marine renewable energy industry. Many companies in the offshore oil and gas industry see that their future lies in their ability to diversify skills and services into renewable energy sources. This synergy is becoming a key driver in the development of marine renewables. The offshore industry is also highly skilled in working in the unforgiving marine environment, and has developed equipment with levels of survivability and reliability that the ocean energy community will need. In the future, the offshore oil and gas industry will need the power from ocean energy, particularly from deep water waves, as it moves to remotely produced and sub-sea production operations.
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4.0
BARRIERS AND CHALLENGES
Technical, political and institutional barriers and challenges lie in the path of ocean energy development. Some obstacles are specific to ocean energy but many also affect other renewable sectors. To overcome them, research and development efforts will need to be well coordinated. 4.1 Technical In order to develop competitive high performance ocean energy systems for global energy markets, the following issues will have to be addressed: Cost Reliability (withstanding a hostile environment) Intermittent production and power quality issues Interconnection issues for distributed generation 4.1.1 Cost The apparent costs of ocean power plant design concepts are high when compared with conventional electricity generation. The experience so far with prototypes has shown that installation difficulties are due more to logistics and civil engineering challenges than to the concept itself. Most existing technologies are still at the prototype testing stage and their availability, reliability and pre-commercial demonstration costs have not yet been validated. The costs of components and infrastructure are the two major factors influencing ocean energy system economics. Sites that offer the best energy potential because of strong waves and currents are also difficult and dangerous to access, so there is a need for reliable components that are easy to maintain. The long gap in time between testing the concept model in a wave tank and testing the prototype in a marine environment incurs high technical and financial risks. There is a need for improved modeling, marine simulations and testing procedures to shorten the time it takes to produce an operational system. This will require development of a complex marine model, which could also be used in power generation capacity prediction, resource assessment and as a control strategy for autonomous operation Costs can be reduced through improving the components, extending their lifetime, and improving the design and efficiency of the complete system. Research should be aimed at optimizing both component and system design. While there is already a range of technologies being deployed as prototypes, new power off-take systems must be designed and tested for each new ocean energy conversion concept, adding to the development time and cost. With experience, more standardization and cost reduction can be expected.
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Deployment is another area of concern. Installation represents the highest cost and risk. Designs must be developed that are easy to deploy, along with procedures that are cheap and safe. 4.1.2 ReliabilityWithstanding a Hostile Environment Most ocean energy systems are built with established construction methods and relatively simple technology. For example, Blue Energy's system has fixed rotor blades mounted in durable marine concrete caissons, which is structurally and mechanically straightforward. The transmission and electrical systems are similar to thousands of existing hydroelectric installations, except they now operate in seawater. Others may use structures similar to the bottom-founded or floating structures used by the oil industry. In all cases, it is to be expected that reliability will increase and lifecycle costs will decrease with experience and integrated design approaches. 4.1.3 Intermittent Production and Power Quality Ocean wave energy is an inherently stochastic resource with significant daily and seasonal variation. Intermittent generation sources, such as ocean wave, wind, and solar, can create technical issues for grid system operation at penetration levels beyond 5-10% of system capacity. These issues include concerns about fault ride-through and frequency control, voltage and power factor control, and increased levels of operating reserves [19]. Extensive research is underway to address the issues caused by the intermittence of wind energy, such as forecasting methods, energy storage, voltage and frequency control, system reserves, correlation with other intermittent resources, and power quality issues. The progress that is achieved in this area can be incorporated into the design of ocean wave energy devices. Wind energy research will identify mitigating measures and will highlight priorities for those who are researching and developing ocean wave energy technologies. Tidal current energy is less affected by intermittence, since it can be predicted due to the cyclic flows of the ocean's tides. There should be sufficient flexibility built into the grid to optimize load capacity by using pumped storage, so that energy can be stored when not needed and then used to cover peak loads or periods when there is less production. Moreover, potential sites in BC having tidal current at different phases will reduce the impact of intermittence. 4.1.4 Interconnection Issues for Distributed Generation Distributed Generation (DG) is a large part of the solution for secure, sustainable energy resources[20]. The ultimate goal is for most distributed resource technologies, such as fuel cells, photovoltaics, and microturbines, to rely on power electronic inverters for connection to the power system. In the near term, most of the distributed energy resources being built and planned are for conventional, synchronous machine-based generation. Either way, ocean energy can contribute to the supply.
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There are concerns around DG in general, and cyclical energy sources in particular. How can the dynamics of a local subsystem or distribution feeder be altered by DG? What happens where there is significant penetration of DG relative to the total power load on that feeder? When the energy source is cyclical, or less than predictable, it is easy to see why there may be resistance to incorporating that resource into the grid. Do planning or engineering approaches address these issues? 4.2 Policy Developers of ocean energy technology and other stakeholders have identified the following major non-technical constraints: Energy market liberalizationthe focus on least cost and the lack of energy sector confidence in emerging (= alternate = marginal = marginalized) energy Lack of support in energy policyocean energy is not directly supported, even by those policies that target alternate energy Lack of regulations that encourage, and reward, the use of ocean energy Lack of market incentive programs, tax-credit programs for companies and individuals who use ocean energy sources, or investment Lack of financial assistance for R&D, public awareness campaigns, and organizational and lobbying activities Issues related to planning and permitting of projects Institutional barriers and lack of support infrastructure 4.2.1 "Marginalized" Energy New approaches to financial and economic analysis may be needed if the standard technologies that produce cheap power, which are vulnerable to fuel prices, are to be compared to initially expensive and risky technologies that gain access to free energy. 4.2.2 Energy Policies Public awareness of the availability, potential and benefits of renewable energies is low. This leads to a lack of demand for both the energy itself and the policies that will enable its supply. The market barriers that have been identified are: Industry visibility and credibility, including standards Understanding of ocean resources, and the areas where various technologies may be economical Understanding of the true cost of renewable energy sources versus conventional energy sources Environmental and aesthetic concerns about the project sites Public opinion
The Intergovernmental Panel on Climate Change estimates that $10 billion in R&D and $7 - 12 billion in worldwide deployment incentives are needed, spread over a couple of decades, to support commercialization of renewable energy technologies. Other policies
that would encourage greenhouse-friendly technologies include tradable emissions permits and/or fees that would internalize some of the social and environmental costs associated with conventional energy technologies, and regulations to open access to the utility grid to small, independent renewable electricity producers. The costs of environmental impacts associated with energy conversion from conventional sources are not yet incorporated into energy prices, which makes the clear environmental and other benefits of renewables less apparent in the marketplace. Once policy is developed and implemented that expresses the external environmental costs of the conventional energy supply (through fiscal mechanisms such as green credits, carbon taxes, etc.), renewable technologies could suddenly have a significant competitive advantage. Portugal has recently published a law that fixes new prices for the purchase of electricity generated by renewable sources. It takes into account: Amount of power generated Costs of operating and maintaining the conventional power plant that is no longer required An environmental value that corresponds to the amount of carbon dioxide per kWh saved by the renewable energy plant
A prerequisite for further growth of the renewable energy industry is fiscal measures such as subsidies or "eco-tax" exemptions for investors and operating companies that support the emergence of renewable energy and allow the technologies to compete in the marketplace. The general public will need to be educated about the added value of ocean energy, in terms of power quality, reliability, and service delivery. This marketing effort could create an image of ocean energy systems as highly technical but green, readily available, and adaptable for new applications. 4.2.3 Lack of a Planning and Permitting Process Planning guidelines and administrative or permitting procedures need to be put in place to handle proposed ocean renewable energy projects. Currently, the relatively minor local negative impacts of renewable developments are sometimes perceived by planning authorities and the general public as outweighing the national or regional environmental benefits and the long-term energy sustainability from such projects. 4.2.4 Removal of Institutional Barriers Policy and decision-makers lack knowledge and experience about renewables, as does the energy distribution industry. Conventional energy sources have benefited from a variety of subsidies, policies and other forms of support on a sustained and global/multinational basis, allowing for competitive delivery of these energy sources by a mature industry. The rules now governing deregulated energy markets make it difficult
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for energy companies to justify investments in new initially non-competitive and risky technologies, even if they are sustainable and ultimately their energy is free. Integrated resource planning has become the "just in time" approach in the energy sector. It includes objectives to diversify supply sources and to optimize sustainability, but reliability becomes critical when capacity reserves are optimized. Some of these objectives make it difficult to focus on longer-term sustainability by assisting some of the longer-term solutions through their development curve. 4.3 Financial The experience gained in developing wind energy provides some guidance on the roles that governments, utilities and the private sector must play. The May 2004 report [21] by Climate Change Capital places ocean energy development a full step behind offshore wind development and two steps behind onshore wind development. The report calls for government support for continuing R&D and enhanced valuation mechanisms for any ocean renewable energy credits,
Figure 10: Funding Gap [Ref. 22] and ensuring that ocean energy producing projects should be relieved of the infrastructure costs of grid hook up or enhancement. Climate Change Capital, which is a merchant bank that specializes in financial development of renewables, sees the government role as critical to ensuring that there will be supplies of ocean energy, and critical to development of an effective investment climate. 4.4 Technology Implementation and Commercialization The funding for ocean energy technologies lies in the left half of Figure 10, with most still in the R&D stage. Devices that have been tested must be scaled up or developed in clusters to operate as power plants, and experience is needed with extended operation and maintenance. No supplier has yet come through with a proven "standard" product. All suppliers are facing the pre-commercial funding gapa development phase where technology and financial risks are particularly high. There are three choices:
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1. Sit back and wait for others to be ready to sell commercial systems 2. Rely on existing R&D and commercialization efforts, if any by Federal departments of Canada, to help some initiatives survive this "valley of death" 3. Take a proactive role in trying to collaborate and solve the problems inherent in this phase of any technology development, by recognizing the particular challenges of the marine environment and the strategic importance of accessing ocean energy as soon as practical. 4.5 Scaling Up One of the strategic advantages that ocean energy offers over other renewables is energy density, due to the accumulated energy and the density and viscosity of the water. This means that scaling up to significant power production could occur on a much smaller footprint than for photovoltaics and offshore wind. In many instances it will be possible to scale production simply by incorporating more unit devices into a production system.
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5.0
COLLABORATIVE R&D TO MEET CHALLENGES AND OVERCOME BARRIERS
5.1 Initiatives and Priorities With the growing realization of the scale of opportunity offered by wave and tidal current energy, many countries and regional governments have initiated strategic analyses and launched strategies to promote development of ocean energy. The April 2004 report of the U.S. Commission on Ocean Policy commented on the disconnection between the potential of ocean energy and its actual capture and use today [23]. The Irish government examined its options [24], and concluded that there is a need to:

Accelerate the development and deployment in the Irish marketplace of competitive renewable energy products, processes and systems Provide support for solutions that enable technical and other barriers to market uptake and/or modal switching to be overcome Establish, where necessary, and strengthen, where possible, a national capacity to access, develop and apply international class R&D in a way which can best meet specific Irish needs on a continuing basis Facilitate and provide guidance to policy makers on the practical, regulatory, technological and market opportunities to achieve greater penetration of RE in Ireland
They recommend undertaking specific projects such as:

Development/Demonstration of Large Scale (0.1 to 1MW) Floating Wave Energy Prototype Devices Studies to identify the best locations for wave and tidal energy devices around Ireland's coast. Topics to be studied would include: wave power levels, tidal stream flow rates, sea bed conditions, shipping lanes, environmental acceptability, grid connection points and grid strength Modelling of wave energy device performance and survivability both theoretically and in wave tanks.
The U.K. Department of Trade and Industry [25] have concluded that a strategy for a DTI program could be:
To move existing well developed device concepts forward to the prototype scale where their performance could be evaluated and verified. This would include tackling areas of outstanding technical uncertainty to reduce the technical and commercial risk. To support the initial evaluation of less well developed device concepts through initial design studies and, perhaps, wave tank testing. The aim would be to verify the concepts, estimate their energy capture potential and evaluate predicted energy costs. To support industry in the development and evaluation of individual innovative components. To commercial exploitation of wave energy in the UK and to stimulate export opportunities for UK companies.
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To co-operate closely with the Engineering and Physical Sciences Research Council in order to encourage fundamental research in areas where innovation is required, and to encourage co-operation between industry and academia. To co-operate with European Commission and International Energy Agency programs, where this will complement UK activities, strengths and business interests, and help to ensure the best value for money for the UK. At the appropriate time, to encourage the demonstration and deployment of proven design concepts.
Strategic R&D and demonstration is embedded in this initiative, with references to their regional programs. The European Wave Energy Thematic Network has identified priority tasks for addressing the limitations to scientific, technical and economic aspects of wave energy (we can include tidal and current), as follows:
Co-operation with power industry
Development of power quality standards (using experience from wind) Development of safety standards Assessment of procedures, costs and facilities for power transmission
Social, planning and environmental impact

Industrial benefit and job creation Institutional barriers (planning, legal, structural and environmental) Environmental impact (benefits to industry and employment and emissions) Planning considerations
Financing and economic issues

Market status of ocean energy Financing of ocean energy projects Economics of ocean energy Environmental economics (true cost evaluation of traditional/renewable energy)
R&D on ocean energy devices

Tidal current and wave energy device status R&D requirements for 1st, 2nd and 3rd generation wave energy devices Tidal energy device status and R&D requirements Strategy and action plan for R&D for current and wave energy devices
Generic technologies (technology transfer from ocean engineering and offshore oil/gas)
Plant control and power output prediction Plant monitoring and performance assessment Loads and survivability
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Maintenance and reliability Modeling and standardized design methods
Promotion of ocean energy

Support for ocean energy "events" Publications in international journals Dissemination of printed material Development of an ocean energy Internet site.
More recently, the EU Program for Co-ordinated Actions on Ocean Energy has launched five work programs to be developed in a series of workshops between 2004 and 2008 [26]. Their focus is:
Modeling of ocean energy systems

Numerical modeling Model test data Component technology and power take off Mooring systems Installation methods Air turbines Water turbines Hydraulics Linear generators
System design, construction, reliability and safety
Verification and design codes and structural reliability Production and construction methods Deployment and maintenance procedures
Performance monitoring of ocean energy systems
Monitoring and specification, real sea performance of wave/tidal power converters Benchmarking device performance
Environmental, economic, development policy and promotion opportunities

Appraisal of environmental macro/micro economics Commonality in development policies across jurisdictions Tools for commercialization Gaining socioeconomic benefits Integration with other renewables and hydrogen
These recent efforts (2002-2004) reinforce the view that there is huge potential for increased confidence in ocean wave and current energy as a power source, reduced costs of the technology,
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and significant production. However, it requires focused research, development and demonstration. 5.2 Fit With National and B.C. Priorities Increased use of renewables can contribute to meeting Canada's Kyoto target, and to getting Canada's industrial sector on a longer-term lower emissions path. Canada has set a target of 10% of new electricity generating capacity coming from emerging renewable sources. While current incentives have not focused on renewable ocean energy, there are precedents. The Government of Canada provided $260 million for the Wind Power Production Incentive in Budget 2001. This will directly support the creation of 1,000 MW of wind energy capacity during the next five years. The Market Incentive Program in Action Plan 2000 provides financial incentives to electricity distributors that offer "green" power to their residential and small-business customers. The Technology Early Action Measures funding is designed to demonstrate greenhouse gas emission reducing technologies with one of five elements focused on decentralized energy production which could describe some ocean energy applications. As of summer 2004, there is no federal strategy that addresses the potential of ocean energy. Encouraged by rising electricity demand on Vancouver Island, and as part of its initiatives on renewable energy technologies, BC Hydro examined the feasibility of exploiting wave and tidal current energy in the province, and developed ocean energy resource maps. In 2002, they undertook a joint venture with two wave energy technology companies, but it was cancelled in 2003 because of the implementation of a new provincial energy policy that restricted BC Hydro's direct involvement in energy generation. BC Hydro takes the position that continued development of ocean energy will reduce the estimated cost and increase performance, and can be expected to make ocean energy competitive. Other developments that can make reliable access to ocean power a reality: Defining the resource potentialthe resource base, efficiency of recovery and cost characterization Using the best information from international development efforts as an input to planning Developing realistic forecasts of the contribution from ocean power to future energy needs Defining the requirements to bring ocean energy supplies to market Identifying the range of available power technologies Assessing the cost of development Determining timing Identifying financing requirements Developing incentives to bridge the cost gap Performing a SWOT analysis of the potential contribution of ocean energy in diversifying supply portfolios
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Reliability and quality of electricity Short and long-term cost considerations Analysis of supply terms, acquisition approach and incentives that are being used in other jurisdictions and with other sectors Alignment of funding sources and policies with sustainability objectives and activities
Private companies are continuing to work at developing ocean energy in B.C. At present there are six companies in the process of developing wave and tidal current technology and projects. A collaborative R&D initiative is a clear priority to support policy initiatives and to demonstrate the performance that should be expected from ocean energy. Every effort will be made to integrate with, and learn from, European initiatives and any other emerging initiatives, but there is a need for leadership from Canadian utilities such as BC Hydro, the Government of British Columbia and the Canadian federal government. 5.3 Collaborative R&D Projects Proposed by OREG OREG is proposing a directed R&D program over the next five years, consisting of ten themes. Theme 1the accurate assessment of resources on the western and eastern coasts of Canada. Three hybrid renewable resourceswave, tidal current and offshore windwill be considered. Theme 2limited early stage technology developmental work, such as model testing of new technologies Theme 3the establishment and operation of pioneer test sites, one for wave power and one for tidal current power, in B.C. Theme 4power quality and improvement through hybrid process, including secondary storage Theme 5grid interconnection issues Theme 6engineering reliability Theme 7virtual modeling of the wave/tidal current to electricity generation conversion process of a few technologies Theme 8integration of ocean energy technologies with other renewable technologies, such as, offshore wind Theme 9the feasibility of using ocean energy to produce compressed hydrogen Theme 10networking with other R&D centres and coordinated actions through IEA and EU programs, as well as organizing relevant technical forums OREG will also be involved in the study of integrated energy options for remote communities. Underlying all of this effort is a commitment by OREG to minimize the risk that development and demonstration projects will be delayed or cancelled by ensuring that there is a community of technical, policy and financial support.
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6.0
PROPOSED PROGRAM
This section describes the prospective scope of activities. A detailed description of scope, tasks, deliverables, schedules, and the associated cost for each theme will be developed during the Scoping Stage. 6.1 Theme 1: Assessment and Monitoring of Ocean Energy Resources 6.1.1 Resource Assessment The first task will be a detailed analysis to accurately assess the resource. Several studies have been done, all indicating an abundant energy source, but we still need quantification in terms of maximum energy output, and variability of the source, and statistical data to enable prediction of the cycles. It is envisioned that these sub-tasks will follow:
Wave resource assessment for the western and eastern coasts of Canada Tidal current resource assessment for the western and eastern coasts of Canada Offshore wind resource assessment for the western and eastern coasts of Canada
6.1.2 Wave and Tidal Current Monitoring The wave and tidal current resource will be monitored at sites in B.C.: wave resources at Ucluelet, Winter Harbour and others, and tidal current resources at Campbell River, Johnston Strait, Strait of Juan de Fuca and others. These sites will be chosen as a result of the resource assessments in Task 6.1.1 and/or proposals from industry. Several environmental assessment companies in B.C. have data acquisition and analysis capabilities for wave and tidal current monitoring, since they service a clientele that includes port operators, coastal engineers, alternate energy researchers, and the offshore oil and gas exploration industry. Axys Environmental Systems in Sidney B.C. has been using the TRIAXYSTM Directional Wave Buoy to monitor wave height, period and direction near Ucluelet. Similarly, ASL Environmental Sciences has a Wave ProfilerTM as well as devices for measuring tidal currents. Researchers at the University of Victoria have used the Acoustic Doppler Current Profiler (ADCP) in several research projects examining tidal flows in the Haro Strait, and the powerful tidal currents created in the narrow channels along the coast of B.C. It is proposed that a program be carried out in collaboration with Axys, ASL, or a B.C. university to log the parameters of ocean energy off the western shore of Vancouver Island or off the Queen Charlotte Islands. This data will be combined with data that Axys collected for BC Hydro near Ucluelet in 2002-2003 to create a clear picture of the resource potential, as well as with data from other tidal current assessments. At the same time, a similar program should be launched on the east coast of Canada.
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6.1.3 Production Estimation The final objective in this theme is to refine the estimates of the potential to capture wave and tidal current energy. Forecasts by developers will be used, along with the results from other themes in this program. The estimates will be regularly updated to give a picture of the scale of power that might be available from the Pacific and Atlantic coasts 10 years and 25 years into the future. These updates are critical to support policy initiatives to promote ocean power, and to create a favorable investment climate. 6.2 Theme 2: Advancing New Technologies The early stages of developing ocean energy recovery technology may produce new approaches or enhancements that will significantly improve efficiency, reliability and flexibility. The basic and strategic research may lead to entirely novel approaches to ocean science and engineering. Canada has world-class wave and current testing facilities in St John's, Ottawa and Vancouver, where promising technologies can be prototyped and tank-tested for rapid advancement to testing at sea. There may be concepts brought forward that are really technology enhancements rather than novel approaches. In these instances, it may be necessary for the proponents of a proposed innovation to collaborate with experts in the proven technology. One of the goals in this R&D initiative is to encourage strategic co-operation, since their contributions will be critical to the success of new developments. 6.3 Theme 3: Establish Test Sites for Ocean Energy 6.3.1 Site Availability The European Marine Energy Centre in Orkney, Scotland has several test berths situated offshore from the islands. Armored cables link each berth to a substation onshore. The substations link to a distribution cable that connects to the national grid and to a data and communications centre. Canada needs a comparable approach to assess and study ocean energy technologies, and to demonstrate them to investors and potential partners. In fact, it is critical that suitable wave and current sites be established as soon as possible. They should be large enough that trials can progress to full-scale production, while being flexible enough to accommodate other developing technologies. It is possible that access can be arranged to the European Test Centres, if necessary. However, trials and demonstrations that occur in North America would better stimulate the development and financing of ocean energy on this continent. OREG member companies have identified prospective tidal and wave energy sites, but considerable work remains before these sites can be developed. OREG is committed to obtaining permits for one wave and one tidal current site. The companies that own the
sites will be expected to agree to allow site access to others, so that work can progress on multiple technologies at the same time. They will also be expected to make the site oceanographic and other data available. The test sites in Canada must have the following facilities: Demonstration berths equipped with the necessary electrical and communication cables to the shore-based substation. A substation equipped as needed with switchgear, metering equipment, power factor correction equipment, communications equipment, emergency generator and the grid isolator. An observation point or monitor room that contains video cameras and a wireless communication link to the test site, linked back to the Data Centre. A weather station that is a stand-alone solar powered meteorological station linked to the Data Centre. Oceanographic instrumentation consisting of current profiling and wave monitoring systems linked to a data centre. A data centre, which could be a remote facility that communicates with a BC based research facility. An access pier and/or bridge that allows physical access to installations. Electrical System: The sites would need to be able to operate several test and production units separately. Each test position should have a power supply available, and a communications connection if the sites clients provide their own umbilical cable system for connection. A possible electrical system configuration for a site with multiple test positions might be: Each test position fed from a circuit breaker connected to a common busbar Each circuit breaker with its own metering and protection system A multifunction metering unit fitted to each circuit breaker, capable of metering imported and exported power and fitted with a communications port A digital protection relay fitted on the incoming circuit breaker, and a suite of relays arranged to trip the test bay feeders. The overall substation kW hrs metering would be undertaken from this incoming circuit breaker.
Data Collection: Test buoys would be provided offshore (or in the current stream) to provide information on sea state to the Data Centre. These buoys would be equipped with drift alarms, if
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needed. The buoy information would be available to all the technology developers who use the test centre or the data collection system. A radio link would provide a continuous feed from the buoy to a transceiver connected to a computer network. Weather Station: Weather data will be available to all developers on the system. Site Requirements and Potential Locations: Two locations need to be secured and permits obtained, one where the wave energy density is high and another where there are significant tidal currents. For wave energy density, Ucluelet on Vancouver Island may be the best site for a facility in B.C. For tidal currents, Canoe Pass near the Campbell River region may be a good site. Site Leasing and Permits: It is proposed that project proponents develop these first test sites, in collaboration with OREG. The project proponent will be responsible for obtaining the lease and the necessary rights to develop the site commercially. OREG will assist with the processes to obtain permits, with designing a multiple use facility, and with establishing a data collection capability. 6.3.2 Facilitating Research, Development And Demonstration Projects Existing ocean energy capture technologies must be pushed further and faster through the development curve. Given the non-mature state of ocean energy technology, it is equally critical that other technologies or modifications be encouraged to progress. OREG will undertake a status assessment and critical issue analysis for all active companies and any other promising technologies. Once the limitations to progress are identified, OREG will take a proactive approach, establishing consortia or technology partnerships, promoting projects to funding sources, and facilitating permits where needed. The objective will be to use the collective capacity of the membership to speed up and broaden the process of technology development and testing. This task may result in initiatives that are specific to a company or technology when it is judged that the project is at grave risk of delay or abandonment. In these cases, non-proprietary components of project results will be shared with the sector. 6.4 Theme 4: Investigating Power Quality; Improvement Through Hybrid Power Generation, or Secondary Storage Many renewable energy projects face the common challenge of providing reliable electricity supplies that are of a quality acceptable to the grid. These are issues of AC conversion, power smoothing and frequency management. Ocean energy can benefit from the research and development that is being done in support of wind energy, but wave and tidal energy will generate their own challenges that may or may not need additional research and development.
The design of wave and current energy capture systems may need to incorporate power quality issues. Research must be done into design criteria that minimise the impact on power quality of seasonal and short-term variations in wave energy, or in the tidal cycles in current energy. One research initiative is to examine how related tidal power sites that are operating on different tidal current cycles might increase reliability factors. Another initiative is to consider how an integrated ocean energy facility might use wind and wave and/or current to smooth variations in power supply. 6.5 Theme 5: Grid Interconnection Ocean energy will contribute to distributed generation (DG), which involves distributed energy resources (DER) and dispersed power (DP), often using small-scale power generation technologies located close to the load being served. DG can reduce demand for grid infrastructure, lower costs, improve reliability, reduce emissions, or expand a user's energy options. DG can add redundancy that increases grid security, while powering emergency and other critical grid components. This task will address the commercial barriers to integration with grid systems. Grid system capacity constraints will be investigated by reviewing assessments that have already been done of ocean energy resources in promising markets. This study should consider:
Physical location of transmission and distribution infrastructures Capacity limits identified (if any) for intermittent generation for some relevant sites
in BC and rest in Canada Ancillary services required by generators Electrical characteristics (voltage and currents) Mitigating measures in place (e.g., planned system upgrades, "constraining off" during times of high wind and low system demand) Identify the capacity issues in grid systems of target markets, with an estimate of the probable limitation to ocean wave energy penetration in each market.
6.6
Theme 6: Reliability Engineering 6.6.1 Structural Wave energy or tidal current conversion devices must continue to operate even in extreme environments caused by waves, currents, wind, seismic activity, and even ice loadings and/or iceberg collisions. Reliable, un-interrupted operation must be ensured under any extreme event. Since the uncertainties over environmental demands, alone or in combination, are considerable, probabilistic methods of analysis have to be used.
Fortunately, there are guidelines available from experience in offshore engineering. Reliability-based design methods allow engineers to evaluate an existing system's performance in terms of its reliability, estimating its probability of non-performance. Probability of non-performance is an essential part of general risk assessment and decision-making, particularly when considering upgrading a system that is not performing adequately. Reliability-based methods can be used to design and set operational requirements for ocean energy conversion systems. A set of design conditions, each describing an associated performance requirement, would be associated with a set of corresponding target reliabilities. These targets are set on the basis of construction costs, business and social considerations, and costs associated with the consequences of repair or system failure. The design parameters that control the system's performance are then determined through an optimization process, the objective of which is to achieve the minimum total cost, with reliability levels, which deviate from the targets as little as possible. The application of probabilistic methods and reliability-based design requires the following steps: 1. Statistical characterization of environmental loads (wind, currents, waves and seastate, earthquake characteristics, ice movements, iceberg sizes). Statistical models should be applicable to point-in-time situations as well as to extremes. For example, extreme wave statistics must be obtained when studying the effect of waves alone, while point-in-time wave statistics must be used when studying the combination event of wave loadings and the effects of an earthquake. 2. Statistical characterization of arrival processes for the different environmental events. For example, this implies an arrival model for the time elapsed between earthquakes, iceberg collisions, or wind storms. 3. A model for the dynamic response of the structural system when acted upon by environmental loads. The system's structural response may not necessarily be elastic, since environmental loads may be controlled by the amount of structural damage (for example, yielding) during such events as an iceberg collision or a high-intensity earthquake. 4. Identification of performance requirements (or limit states) and associated descriptions in terms of the intervening variables. 5. Calculation of a structural response database for each of the performance requirement variables. For example, horizontal drift at the top of the structure could be a limiting design requirement, and a database for this drift must be obtained as a function of the intervening variables (structural geometry and stiffness, wind intensity, wave height, ice thickness, current velocity, earthquake intensity, etc.). The database, obtained
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deterministically with the dynamic analysis for the structure, represents a fingerprint of the response that can then be used for reliability estimation or design optimization. 6. Representation of the discrete response database by a response surface or a neural network. This representation acts as a surrogate for the dynamic analysis of the system, permitting an estimation of the response without having to repeat a dynamic analysis every time the values for the basic intervening values are changed. 7. Use of the response representation, together with the statistics for the basic structural and environmental variables, to calculate the reliability of the system in each performance requirement. The associated annual risk is calculated, taking into account the arrival rate of the environmental event. The total annual risk for the design is also calculated. 8. Modification of the design variables (optimization). For example, structural geometry or mechanical properties may be modified to minimize the total cost while still achieving, as best as possible, the desired target reliabilities. Work on this task should begin with developing a generic assessment of the critical design limit states that will be useful to design and deploy on any of the wave and current technologies. When operating and maintaining a wave-energy conversion system, a risk-based least cost strategy should be developed. Under harsh operation conditions, the strength of the system could be weakened due to corrosion, fatigue and general deterioration. Thus, an assessment procedure is needed to determine the present condition of the system. The reliability analysis method discussed above can be applied to predict the probability of failure for each failure mode under the existing system and environmental conditions. Based on these, an optimal strategy can then be developed to guide the design, operation and maintenance. 6.6.2 Mechanical Systems All mechanical systems operating for extended periods at the air/sea interface or shallow subsurface are subject to some unique challenges. Low friction, high tolerance seals, corrosion, fouling and bearings for use in turbulent conditions are just some of the issues that require a focus on materials science and mechanical engineering. Fluid power transfer may become a limiting factor in many technologies. This task addresses some common design concerns and constraints that will be needed in integrated systems design. The general approach described for structural reliability evaluation can be equally applied to mechanical systems, once the performance requirements and operational constraints have been specified and described.
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6.6.3 Mooring Research programs in Europe have identified mooring design and technology as a critical factor in the implementation of large scale ocean power systems. The mooring experience of the offshore oil and gas industry is helpful, but ocean power systems bring new challenges because they are designed to absorb the environmental impact of waves or currents, while most offshore ocean engineering projects have been designed to shed those loadings. 6.6.4 Electrical Connection While placing electrical and communication cabling on ocean beds has become routine, it has mainly been fixed, point to point cabling. Ocean energy systems may introduce new challenges because the power plants are dynamic structures that need to connect to a fixed seafloor grid. This task must integrate closely with work going on elsewhere, such as standards development by the Canadian Standards Association (CSA) for offshore hydrocarbon structures and the European standards initiative being led by DNV.
6.7
Theme 7: Virtual Modeling of the Wave/Tidal Current to Electricity Conversion (VMWTEC) Process of Relevant Technologies One of the challenges facing those who are working to supply ocean energy is to realistically assess the power production they will offer. Another challenge is to refine the forecast of longer-term supply costs from what is currently a non-commercial technology not demonstrated at full scale. Target benchmarks for the key technologies must be defined through modeling, using outputs from European projects that have defined critical test and evaluation criteria. The VMWTEC model will be built using an object-oriented architecture in a high level language. At the first stage, modules will be designed for various stages of the energy conversion process, using generic characteristics of the conversion process provided by technology developers. Provision will be made to allow more detailed assessments for a particular technology. The developed framework and the software will be applied to realtime monitoring of a demonstration plant, as well as demonstrating a technology at the test site.
6.8
Theme 8: Demonstration and Integration with Other Renewable Technologies The challenges of obtaining site permits and performing integrated ocean management may be a driver to maximize the use of any footprint developed for ocean energy capture. At least one European system under development is a combined wind and current system. Integration of power captured from different energy sources may also emerge as a technique to improve reliability, as well as to optimize investment.
The first task will be to model the potential to add other energy capture technologies to wave or current or offshore wind projects, and to determine whether multiple approaches in essentially the same footprint will add energy and improve power quality. This may lead to further consideration of the economic, engineering and financial implications. It is proposed that a research program be set up to define the system configuration, perform detail system design, and conduct laboratory experiments. This theme could be developed in collaboration with an offshore wind project developer in BC. 6.9 Theme 9: Feasibility of Utilization of Ocean Energy for Hydrogen Production Ocean energy may represent a natural source for hydrogen production from renewable energy and available water, since some ocean energy conversion technologies can be used to develop and demonstrate hydrogen production. There are at least two applications that should be addressed in this theme. The first is that of producing hydrogen as a transportable fuel from ocean energy plants. The second is the concept of service for non-grid-connected communities and industry, using hydrogen as an energy storage medium to smooth electricity capacity. This concept is applicable for both wave and tidal current energy technology conversion processes. A feasibility study will be conducted to assess ocean energy hydrogen production, followed by a design and implementation of the study results. The feasibility study will address system design, implementation, risks and economics associated with ocean energy hydrogen production, storage and transportation. An implementation task will then define system configuration, perform detail system design, and conduct laboratory experiments, followed by ocean testing of a full-scale ocean energy hydrogen production device. This theme could be developed in collaboration with a BC based company involved in R&D activities related to electrolysis. 6.10 Theme 10: Networking with IEA, EU, and Other R&D Centres; Organizing Relevant Technical Conferences Powertech Labs is the Canadian delegate for the IEA Implementing Agreements on Ocean Energy Systems (IA/OES). This organization is discussing collaborative R&D, particularly in the area of power quality, interconnection, hybrid resources, and development of international standards for evaluating performances of conversion devices. Powertech can continue to represent OREG and the Canadian Government at the IEA IA/OES, identifying opportunities for Canada to join R&D projects through a contribution of research effort or pooling of financial resources. It is the intent of this collaborative initiative, proposed by OREG, to avoid any duplication and leverage scarce R&D resources.
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Powertech Labs is also one of the 52-member coordinated action project, funded by EU, for transferring the knowledge gained by technology developers and ocean energy researchers through well-organized workshops. OREG, represented by Powertech, will ensure that this knowledge is used in all Canadian developments. Powertech can also link OREG with other national (e.g., NRC-IOT, MUN, C-CORE, CHC) and international (e.g., IOT-India, Saga University-Japan) R&D facilities. OREG will organize biennial conferences in 2006 and 2008, inviting the worldwide ocean energy community to Canada to showcase our progress worldwide. The conferences will demonstrate Canadian opportunities and raise the profile of ocean energy with business and investors. 6.11 Approach to Intellectual Property
The fundamental objective of this collaborative R&D program is to ensure that we have reliable ocean power available in a reasonable time frame. Funds that are invested in this program will generate a knowledge base that is available to the entire energy sector. The program is expected, however, to be involved in some company or technology specific initiatives where the risk of loss of momentum or time would be serious. Any intellectual advance in these initiatives will be deemed the property of the commercial partner(s), for use within a defined time period. 6.12 Provisional Milestones and Budget
Schedule of tentative tasks for various theme are shown in Table 1. Detailed theme tasks and specific projects will be developed through the scoping stage of the theme when the collaborative program is established. A provisional budget for each theme, including the task involving scoping stage for the theme and year is shown in Table 2. The total program budget is envisaged as approximately $3 million per year for five years. In order for the program to be successful, it is critical that there are commitments to the full budget and to establishing the management approaches discussed in the next section.
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Table 1 Tentative Program Schedule

Theme 1. Resource assessment and monitoring Task/project Detailed Theme Scoping Wave: Resource assessment Monitoring Current: Resource assessment Monitoring Offshore wind resources Production estimates Detailed Theme Scoping Model testing of relevant wave Tidal current technologies Detailed Theme Scoping Determine permitt'g critical points Technology status assessment Demo project identification Electrical system plan Data collection plan & system des'n Research to permit sites Implementation of demo projects Detailed Theme scoping Ident'n issues spec to ocean energy Dev't parameters for OE designs R&D techniques to improve Feas'ty, impr't by integr'n of re'bles Detailed Theme Scoping Assessment, potential for microgrids Ident cap'ty limitsinterm'nt gen'n Identify elect characteristics requ'd Identify grid capacity issues Dev distr'd energy res plan coast BC Detailed Theme Scoping Structural Mechanical systems Mooring Electrical connection Detailed Theme Scoping Model development Development as monitoring tool Development for operations control Detailed Theme Scoping Feasibility study for coming with offshore wind Design project Detailed Theme Scoping Feasibility study Design project Lab scale trials
2005
2006
Timeframe 2007 2008
2009
2. Advancing new technologies 3. Test sites
4. Power quality
5. Inter-connec'n
6. Reliability
7. Virtual Modeling
8. Integration with other renewables
9. Hydrogen production
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Collaborative R&D Program for Enabling Renewable Ocean Energy Delivery in British Columbia and Canada Theme 10. Internat'l collabor'n Task/project Detailed Theme Scoping IEA participation Monitoring R&D internat'l efforts Participation in internat'l projects Organizing technical conference Timeframe 2007 2008
2005
2006
2009
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Table 2: Proposed Budget (000's)

Theme Project/Task 2005 25 2006 Yearly budget 2007 2008 2009 Total Theme Budget
1. Resource assessm't & Theme Scoping monit'g Wave: Resource assessment Monitoring Current: Resource assessment Monitoring Offshore wind: resource assessment Production estimates 2. Advancing new technologies 3. Test sites Theme Scoping Model Testing-wave Model testing-tidal current Theme Scoping Determine permitt'g critical points Technology status assessment Demo project identification Electrical system plan Data collection plan & system des'n Research to permit sites Contrib to demo projects Theme scoping Ident'n issues spec to ocean energy Dev't parameters for Oc En designs R&D techniques to improve Feas'ty, impr't by integr'n of re'bles Theme Scoping Assessment, potential for microgrids Ident cap'ty limitsinterm'nt gen'n Identify elect characteristics requ'd Identify grid capacity issues Dev distr'd energy res plan coast BC Ass't opport's to supply rem commun
275
250
150
150
150
1,000
15 185 50 150 150 150 200 850
900
1,100
1,150
1,400
1,400
6,000
4. Power quality
20 180 150 150 150 150 800
5. Inter-connec'n
20
180
200
150
150
100
800
This document shall not be reproduced, without the written approval of OREG 2 September, 2004
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Yearly budget 6. Reliability Theme Scoping Structural Mechanical systems Mooring Electrical connection Contribution to Standards development Theme Scoping Model development Assessment of technologies Development as monitoring tool Development for operations control Theme Scoping Combined offshore wind/wave/tidal Design project Lab scale trials Contribution to Pilot trial 25
175
200
200
150
200
950
7. Virtual Modeling
25 175 200 200 150 100 850
8. Integrated systems
20 180 200 200 100 100 800
9. Hydrogen production Theme Scoping Feasibility study Design project Lab scale trials Contribution to Pilot trial 10. Internat'l collabor'n Theme Scoping IEA-IA-OES Participation Participation in internat'l projects Organizing technical conference Grand total
20 80 100 200 150 150 700
20 130 30 270 270 2730 150 300 3,000 150 300 3,000 150 300 3,000 150 300 3,000 750 1,500 15,000
Program management
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6.13
Program and Funding Partners
One of objectives of this collaborative R&D program is to build a focus and stimulus that will allow Canada to take over the leadership position in ocean energy development that Europe currently has. It is proposed to bring Canadian federal and provincial government interests together with those of utilities in a sustained and coherent approach to build knowledge, strengthen the sector and advance Canadian experience and expertise. 6.13.1 Government of Canada Involvement As a follow up to the Innovation Agenda, Industry Canada has been encouraging the OREG initiative and has commissioned a review of ocean energy technology. Renewable energy is a focus within Natural Resources Canada. Although there is no specific program on ocean energy development, the following programs could support R&D and demonstration projects related to ocean energy: Climate Change Technology and Innovation Initiative: Created in 2003 by the federal government, this 5-year program will support collaborative projects with partners in five strategic areas, including decentralized energy production. The objective of this program is to accelerate research, development and demonstration of longer term technologies to achieve GHG reductions [28]. Sustainable Development Technology Canada: An arm's-length foundation that was developed through a national government initiative to foster the rapid development, demonstration and precommercialization of technological solutions that address climate change and air quality [29]. The following programs support other renewable energy technologies, but are not available to ocean energy: Wind Power Production Incentive (WPPI): Established in 2002 to provide financial support for the installation of 1,000 megawatts of new capacity over five years [30]. Renewable Energy Deployment Initiative (REDI): Intended to stimulate the market demand for commercially reliable, cost-effective renewable energy systems for space and water heating and cooling [31]. Recently, the Research and Development Team for the Distributed Energy Production (DEP) component of the Technology and Innovation (T & I) Program of NRCan has produced a strategy document[34] that discusses estimated market penetration of electricity production from different technology areas, including ocean wave. The program identifies availability of certain funding for a 5-year period for all the themes.
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Support from the National Research Council Industrial Research Assistance Program is available to ocean energy developers, but a sector-specific initiative might be justified under the cluster building initiatives. Strategic development of ocean energy can lead to significant economic development benefits. Long-term supplies of cheap energy are fundamental to economic activity. Affordable power supplies to remote coastal communities will open many new economic opportunities. Development of the ocean power sector will immediately stimulate the ocean technology, environmental, ocean engineering and marine fabrication industries. Ocean energy technologies and projects will be built in Canada, and in due course Canadian technology, service and operations experience will be exported to the enormous world ocean energy market. The Western Economic Diversification Canada has adopted a strategic support role in the development of Fuel Cells Canada. A similar strategic decision might be considered for ocean energy in the West Coast , even if initially its intention is to supply hydrogen from ocean energy to the existing fuel cell strategy. A federal commitment that is specifically focused on enabling ocean energy development is needed, as a step toward access to the generic programs and in order to make the case for broader adoption incentives. This commitment might take the form of a strategic commitment from existing programs, or a new program to pursue the opportunity for international leadership in ocean energy. It could be an integral part of the emerging National Oceans Action Plan, addressing the objectives of sustainability and ocean economy. Federal involvement will boost recognition of the enormous ocean energy resource potential available in Canada, and recognition that ocean energy is starting from a point that is a decade behind the wind energy sector. The PNWER Resolution calling for a federal strategy to implement ocean energy deserves a strong positive response from Canada. 6.13.2 Government of British Columbia Involvement The B.C. energy policy identifies clean energy targets, but the only mechanism currently in place is the policy objectives of BC Hydro. A more specific policy on alternate energy development may be developed in the near future, recognizing the differences in longterm roles expected of the renewable energy choices, such as, Ocean Energy and the different implementation stages and challenges faced by each of them. In presenting its perspective [32] on the offshore oil and gas moratorium, the Province has indicated: It is widely acknowledged that natural gas will provide the transition fuel to a renewables-based economy powered with hydrogen and renewable energy whose arrival date is uncertain, but could be in the range of 25 to 50 years. Today, almost all of the world's hydrogen is produced from hydrocarbons, and developing applications of hydrogen fuel cells (e.g., in vehicles, laptops, backup generators) are largely reliant on natural gas, or its liquid carrier methanol, for their hydrogen feedstock.
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Revenues from oil and gas could be used to support the transition to a renewables-based economy, either directly through the concept of a legacy fund to facilitate investment in alternative energy, or indirectly through the Province's improved fiscal capacity. In fact, there is a growing public expectation that renewable energy will provide an alternative to offshore hydrocarbon development. Of those who have submitted formal positions that support maintaining the moratorium on offshore exploration in British Columbia, 38% expressed the view that alternatives were already available or could be developed by the same effort [33]. While linkages between development of ocean renewable and non-renewable energy may emerge, there are no indications so far that revenue from offshore oil and gas will be used to drive the transition. OREG plans to propose that any B.C. strategy on alternate energy development commit revenues from existing hydrocarbon exploitation to these developments. This will make the transition commitment obvious, demonstrate that development of offshore resources will help fuel that transition, and ensure that strategic initiatives in ocean energy development can be internationally competitive. OREG also plans to propose that the Provincial Government to establish an Ocean Engineering research and education program and appropriate research chairs at the local universities. 6.13.3 BC Hydro Involvement Like most utilities, BC Hydro has been given mandates that conflict their objective of supplying cheap power with their need to develop diversified portfolios of renewable power. BC Hydro's voluntary target of 50% "clean" energy in any increased supply is, following the analysis in their 2004 Integrated Energy Plan, likely to focus only on the adoption of commercially proven approaches (advanced gas turbine, wood waste, onshore wind and run of river technologies). BC Hydro's attention to its sustainability responsibility, and its desire to avoid building a reliance on non-renewable resources (inevitably resulting in long-term increased cost of electricity), means that a major focus of its R&D agenda is the ability to incorporate distributed generation, alternate power supplies, alternate fuels, and the potential for a 0emissions policy. BC Hydro has already built a knowledge base of the resource availability and the state of the ocean energy sector. It has proposed joint ventures that are world-leading initiatives. However, BC Hydro recognizes that ocean energy needs significant development assistance before it will meet criteria that will allow adoption in "competitive" power purchase agreements. Specific support by BC Hydro's in-house R&D initiatives and funding contributions to a program of collaborative R&D can be a critical factor in ensuring that competitive technologies and reliable ocean power will be available to support their long-term mandate of providing a cheap electricity supply. These initiatives need to be complemented by developing parallel mechanisms for acquiring electricity from near-commercial generation technologies, such as from ocean energy.
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By taking the lead, BC Hydro will engage other utilities to share in the investment and benefits from development of the sector. 6.13.4 Funding Sources OREG has identified three key funding sources for the proposed 5-year collaborative R&D program: B.C. Hydro, the Federal Government and the B.C. Provincial Government. The funding schedule is shown in Table 3. Table 3 Summary of Funding Sources (k$) Funding Streams Canadian Federal Govt. (NRCan, Industry Canada, Western Economic Diversification, Environment Canada, and others) Provincial Govt- B.C. Ministry of Energy & Mines Utilities- BC Hydro Corporate R&D, and others Total JanMarch 90 2005 April.Dec. 950 2006 1,000 2007 1,000 2008 1,000 2009 1,000 Total 5,000
90 90 270
950 950 2,730
1,000 1,000 3,000
1,000 1,000 3,000
1,000 1,000 3,000
1,000 1,000 3,000
5,000 5,000 15,000
Federal Government: Funding from the Federal Government could come through established programs in departments such as: Natural Resource Canada, Industry Canada, Western Economic Diversification, and Environment Canada. While an indication of support through established departments and programs is encouraging, OREG recognizes that launching a successful collaborative program requires a defined commitment. To that end, a process must be undertaken to identify and designate federal funds to OREG so that a successful program can be undertaken. This might be in the form of a designated amount from each organization/department interested in participating. It is usual to establish Contribution Agreements from federal departments or agencies. If the federal funding were to be contributed in this manner, the various agencies that participate would need to coordinate their definition of the terms and conditions of the contribution agreement for the program. Timing would be crucial in terms of fiscal year end and length of program. OREGs preferred funding process would be for the Federal funding to flow to OREG as a Grant. Other not-for-profit organizations have received funding in this manner to further the technology development goals of the Federal Government. B.C. Provincial Government:
This document shall not be reproduced, without the written approval of OREG 2 September, 2004 Page 48
The B.C. Provincial Government might approach support in much the same way as the Federal Government, by identifying funding from existing ministries and department, or specific programs. At present, Energy Mines and Resources appears to have programs that are most relevant to the proposed OREG collaborative R&D venture. BC Hydro: BC Hydro funding could come through the Corporate Sustainability R&D program. Funding from other Canadian utilities, such as Hydro Quebec, New Brunswick Power, and Nova Scotia Power, could come through their existing programs on Renewable Energy/Distributed Generation. 6.13.5 Tentative Task Partners for the Collaborative R&D The proposed R&D themes are expected to be carried out by OREG members, as well as by other local and Canadian organizations. Some organizations are identified under the theme descriptions in Section 6. Table 4 identifies potential partners for each theme.
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Table 4: Tentative Theme Partners Activities Theme 1 Potential Partners Axys Environmental System (Axys), ASL Environmental Sciences (ASL), Triton Consultants (Triton), Univ. of Victoria (UVIC), Univ. of BC (UBC), Powertech Labs Inc. (Powertech) , BC Hydro, Memorial Univ. (MUN)., CCORE , and Others Vizon SciTec (Vizon), Canadian Hydraulic Centre (CHC), Inst. of Ocean Technology (IOT), Sieber Energy, Clean Current Power System (Clean Current), UBC, and others Aqua Energy Canada (Aqua Energy), Canoe Pass Tidal Energy Corp. (Canoe Pass), Blue Energy Canada (Blue Energy), Clean Current, Energetech, Axys, AMEC, UVIC, UBC, Powertech, BC Hydro, Local Communities, Inst. of Ocean Sciences (IOS), BC Land & Water, Dept. of Fisheries & Oceans (DFO), and others Powertech and BC Hydro, and others Powertech , BC Hydro, BC Transmission Corporation (BCTC), and others UBC, Powertech, AMEC, BC TC, and others UVIC, UBC, Powertech, Aqua Energy, Blue Energy, Clean Current, Sieber Energy, Canoe Pass, Energetech,, and others UVIC, UBC, Powertech, Ni Kun Offshore Wind Project Corp, Greater Vancouver Regional District (GVRD), National Research Council (NRC), and others UVIC, Vizon, Powertech, Aqua Energy, Blue Energy, Canoe Pass, NRC, BC Hydro, Mitsubishi, and others
Theme 2 Theme 3
Theme 4 Theme 5 Theme 6 Theme 7 Theme 8 Theme 9
Theme 10 Powertech , OREG, UBC, UVIC, Innovation Council of BC, and others Program OREG Management
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6.14
Program Direction and Management
A detailed program administration plan is premature without input from the funding organizations. However, a program management process is suggested in this section. 6.14.1 Ocean Energy Partnership (OEP) Group It is recognized that OREG must have a structure in place that assures the funding organizations that mandates can be fulfilled, the funding will be administered in a prudent and accountable fashion, and that desired outcomes are attainable. To that end, an Ocean Energy Partnership (OEP) Group will be formed to provide overall direction and security for the interests of funding agencies. The group is expected to be made up of representatives from BC Hydro (and eventually other partnering utilities), Natural Resources Canada, Western Economic Diversification, Environment Canada, Industry Canada, the B.C. Ministry of Mines and Energy (and eventually resource ministries of other provinces), and OREGs Sub-committee on R&D. It is possible that OEP could act as the OREG Board of Directors, or a board committee. OEP would oversee the management of the program in accordance with the agreements with each funding agency involved. As well, the Board would give final approval to projects brought forward by OREG. OREG, as a NPO consortium, is the logical choice to administer program management and report to the OEP, who are in effect the interface between the funding organizations and OREG. OREG would report directly to the OEP on all aspects of the program. The program would contain ten themes of research and development for which proposals would be submitted and funding awarded. It is proposed that Program Management be identified as an ongoing activity that would support all R&D themes in the program. The Program Management activities would focus on building a critical mass of companies involved in Ocean Energy and developing a public market for future technologies in ocean energy. 6.14.2 Program Management Process The OEP Group will be responsible for setting the balance between the themes identified in the proposal, and/or others that they may find to have a higher priority. Based on the commitment, interests and priorities of the funding organizations, OREGs Sub-committee on R&D will define and prepare a specific proposal for each theme, in consultation with the organizations identified in Table 4. This task will be part of the scoping phase of each of the themes. These theme proposals will then be submitted to OEP for review and approval. Program management would consist of: Developing theme proposals in association with the identified organizations Submitting the theme proposals to the OEP for approval Monitoring projects and carrying out financial reporting and technical reviews
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Once projects are awarded, the OREG program management team would administer the progress, monitoring, reporting and invoicing of the ongoing projects. It is proposed that the following positions make up the program management team. Operational/Program Manager responsible for the ongoing international activity, all aspects of reporting to the OEP and the Funding Agencies, monitoring of the projects and interfacing with the lead project/theme manager Financial Manager/Coordinator Administrative Assistant (part-time) These roles may be assigned across different organizations. Within the OREG cluster, Powertech already has experience in management of consortium projects in which it is also a player. OREG might provide management support and be strengthened by the effort. 6.14.3 Placement of Operation It is proposed that OREG be physically located at Powertech Labs. There is office space available at Powertech that could accommodate OREG and its proposed operations.
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7.0
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32]
REFERENCED DOCUMENT SOURCES

http://www2.nrcan.gc.ca/es/erb/erb/english/View.asp?x=469 Renewable Energy in Canada, Final Report to Natural Resources Canada, The Conference Board of Canada, September 24, 2003 http://www.gov.bc.ca/em/popt/energyplan.htm Energy for our future: A Plan for BC, Government of British Columbia, 2003 BC Hydro, 2004 Integrated Electricity Plan http://www.pnwer.org/meetings/summer2004/programagenda - Energy II http://www.iea-oceans.org/oes/publ/relatorio2.pdf http://www.irish-energy.ie/uploads/documents/upload/publications/wave.pdf http://www.bwea.com/media/news/marinefund.html European Thematic Network on Wave Energy, Wave energy utilization in Europe, Current Status and Perspectives, 2002 Powertech Labs Report, 1995 Green Energy Study for British Columbia, Phase 2: Mainland, Tidal Current Energy, Triton Consultants Ltd. Lou Skoda, Green Electricity Resources of British Columbia, BC Hydro and Canadian Cartographics ltd., November 1, 2002 ISBN 0-921259-28-X Bhuyan, G., Status of Renewable Ocean Energy Technologies: Opportunities & Challenges, Renewable 2003, Calgary , Dec. 2003 www.dw-1.com World Energy, Technology and Climate Policy Outlook 2030, WETO, European Commission, 2003 European Wave Energy Thematic Network: from Thorpe 1999 http://www.e2i.org/e2i/docs/002_Rev_1_COE_Methodology_RB_7-14-04.pdf http://europa.eu.int/comm/energy/res/sectors/doc/ocean/wave_energy_brochure.pdf http://www.emu-consult.dk/includes/environmental-impact.pdf IEA Implementing Agreement on Ocean Energy Systems- Proposed Annexes on Market Facilitation for Ocean Energy Systems http://www.nrel.gov/docs/fy03osti/34715.pdf http://www.bwea.com/marine/media_briefing.html Into the Blue, Financing the Future of the Emerging Wave & Tidal Power Section, The British WindEnergy Assocation, May 2004 http://www.oceancommission.gov/documents/prelimreport/welcome.html http://www.irish-energy.ie/uploads/documents/upload/publications/rdd_program.pdf http://www.dti.gov.uk/energy/renewables/technologies/routemap.shtml#wave Sixth Framework Program Priority 6.1.3.2.3 Renewable Energy Technologies http://www.iea-oceans.org/oes/events/indexEv.asp?EventID=31 http://www.climatechange.gc.ca/english/actions/action_fund/techno.shtml http://www.sdtc.ca http://www.canren.gc.ca/programs/index.asp?CaId=107&PgId=622 http://www2.nrcan.gc.ca/es/erb/erb/english/View.asp?x=455 http://www.em.gov.bc.ca/DL/offshore/Reports/BritishColumbiaPerspectiveOnFederal Moratorium-April_15_2004.pdf http://www.poea.ca/nr/prpan/Response%20to%20Priddle%20-%20POEA%20-%20Final.pdf T & I Distributed Energy Production Strategic Plan, Prepared by Rob Brandon, NR Can, June 2004
[33] [34]
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[35] [36] [37]
Canadas Energy Future, Scenarios for Supply and Demand to 2025, National Energy Board, Public Consultation , 2003 Bhuyan, G., Ocean a Potential Primary Renewable Energy Sources for British Columbia, Presented at the BC Forum on Engineering BCs Offshore Development Challenges & Opportunities, Vancouver, BC, 2004 Margolick, M., Nai Kun Project, presented at the PNWER Annual Submit, Victoria, 2004
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APPENDIX The Ocean Renewable Energy Group (OREG)
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AN INTRODUCTION TO THE OCEAN RENEWABLE ENERGY GROUP (OREG) OREG is the not for profit group that brings together a breadth of interest and capability to move the ocean energy agenda forward. Vision The Ocean Renewable Energy Group (OREG) provides leadership in the development of a Canadian sustainable ocean energy sector, to serve domestic needs and to commercialise the resultant technologies and expertise in a global market. Mission The Ocean Renewable Energy Group (OREG) is a collaboration between industry, academia and government to advocate for, and accelerate the research, development and commercialisation of new technologies required for, the generation of ocean-based renewable energy. Organizational Structure The Executive Leadership Team Chris Knight, Canoe Pass Tidal Energy Corp., Director & Interim Chair Gouri Bhuyan, Powertech Labs Inc., Director Jessica Johnson, Centre for Sustainable Communities Canada (CSCC), Director & Secretary Mary Jane Parks, AquaEnergy, Director Nigel Protter, Sieber Energy, Director Michael Tarbotton, Triton Consultants Ltd., Director Policy Sub-Committee Mary Jane Parks, AquaEnergy, Leader Chris Campbell, Consultant Chris Knight, Canoe Pass Janice Larson, BC Ministry of E & M Jessica Johnson, CSCC Andrew Walls, BC Innovation Council Thor Peterson, Canoe Pass Corp. Harry Weiler, Axys Environmental Systems Clay Braziller, CIMI Gouri Bhuyan, Powertech Labs R&D Sub-Committee Gouri Bhuyan, Powertech Labs Inc., Leader Sander Calisal, University of BC Lawrence Pitt, University of Victoria Michael Tarbotton, Triton Consultants Russel Stothers, Clean Current Alla Weinstein, AquaEnergy
Investment Sub-Committee Nigel Protter, Sieber Energy, Leader
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OREG Member Organizations: A. Technology & Project Developers AquaEnergy Group BlueEnergy Canada Canoe Pass Tidal Energy Corp. Clean Current Power Systems Inc. Energetech Sieber Energy Seabreeze Power New Energy Group B. Academic Organizations Dept. of Civil Engineering, University of BC Dept. of Mechanical Engineering, University of BC Institute for Integrated Energy System (IESVIC), University of Victoria Dept. of Physics, University of Victoria C. R&D Organizations, Marine Industries, and Consulting Firms ASL Environmental Sciences AMEC Axys Environmental Systems Powertech Labs Triton Consultants Vizon SciTec D. Utilities BC Hydro E. Government Organizations Federal: Environment Canada Industry Canada International Trade NRC-IRAP NRCan Provincial: BC Ministry of Energy & Mines Land & Water BC BC Innovation Council Regional: Greater Vancouver Regional District (GVRD)
F. Other Organizations Centre for Sustainable Communities Canada (CSCC) Canadian Institute for Market Intelligence (CIMI)
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OREG RD Proposal

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A PROPOSAL FOR A COLLABORATIVE RESEARCH & DEVELOPMENT PROGRAM FOR ENABLING RENEWABLE OCEAN ENERGY DELIVERY IN BRITISH COLUMBIA

The Ocean Renewable Energy Group (OREG) British Columbia

Figure 1: Range of Unit Energy Costs (2003 Status) [Ref. 3]

OCEAN ENERGY RESEARCH WORLDWIDE

TIDES (0. 03 TW)

MARI NE CU RRENTS (5.0 TW)

THERMAL GRADI ENT (2.0 TW)

SALINI TY G RADIENT (2. 6 TW)

Figure 6: Implementation Curves of Wind and Wave Energy [Ref. 13]

P roduc tion of Compr ess ed Air for Aqua cultur e

O cean Renewable Energy

BARRIERS AND CHALLENGES

COLLABORATIVE R&D TO MEET CHALLENGES AND OVERCOME BARRIERS

They recommend undertaking specific projects such as:

Co-operation with power industry

Social, planning and environmental impact

Financing and economic issues

R&D on ocean energy devices

Maintenance and reliability Modeling and standardized design methods

Promotion of ocean energy

Modeling of ocean energy systems

System design, construction, reliability and safety

Performance monitoring of ocean energy systems

Environmental, economic, development policy and promotion opportunities

Table 1 Tentative Program Schedule

Timeframe 2007 2008

2. Advancing new technologies 3. Test sites

8. Integration with other renewables

Table 2: Proposed Budget (000's)

15 185 50 150 150 150 200 850

20 180 150 150 150 150 800

25 175 200 200 150 100 850

20 180 200 200 100 100 800

20 80 100 200 150 150 700

Program and Funding Partners

950 950 2,730

1,000 1,000 3,000

1,000 1,000 3,000

1,000 1,000 3,000

1,000 1,000 3,000

5,000 5,000 15,000

Theme 4 Theme 5 Theme 6 Theme 7 Theme 8 Theme 9

Program Direction and Management

REFERENCED DOCUMENT SOURCES

[35] [36] [37]

APPENDIX The Ocean Renewable Energy Group (OREG)

Investment Sub-Committee Nigel Protter, Sieber Energy, Leader

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