Ocean Energy
Development & Funding Mechanisms
HMRC Economics Forum
April 2012
Ocean Energy
Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
• Why?
• Ocean Energy Strategy
• Funding Sources
• Ocean Energy Industry Fund
• General
Why?
Is 2020 seen as a waypoint on a much longer path?
What actions are to be developed around a longer-term vision for
electricity from marine renewable energy resources?
2030
2040
10GW
25GW ?
2050
?
The Market – export of electricity
Ireland has sufficient generation to meet its electricity needs.
Where is the market for our substantial resource and how can this be
accessed?
Study of exporting renewable electricity
Study on the viability and cost benefit analysis for Ireland of exporting renewable
electricity using the co-operation mechanisms in Directive 2009/28/EC
• Assumes Ireland meets its binding target domestically and monetises additional
RES-E production through exports
• Assumes no additional burden on tax-payer or consumers to fund infrastructure
• Projects are developed under Joint Project frameworks or statistical transfers
Economic Study - SQW
Economic Benefits of Ocean Energy Development
• Examine the commercial outlook for the industry and summarise the
challenges facing the sector
• Show the potential economic contribution of the industry in terms of
energy output and manufacturing and supporting industry
• Identify the optimal respective roles for the private and public sector in
developing ocean energy
• Review the strategic options for Ireland to maximise the economic
contribution of the industry
Headline Conclusions

By 2030 the NPV per technology of the OE market could be worth
>€1.5bn to both the RoI and NI and provide >20,000 jobs.

Definite costs and development potential are not yet transparent as the
OE industry is immature – although huge potential markets exist.

Learning rates are expected to rapidly increase with relatively
significant levels of support in the short term.

Only learning by doing will add the required clarity to the possible cost
reduction/learning rates, and to any decision for further subsidy.

Further early intervention in OE will allow time to prove the envisaged
cost improvements while maintaining the possibility of a developed
Irish OE industry and its benefits.
Headline Conclusions

A funding gap exists between prototype funding and revenue support
(REFIT or ROCs) schemes.
 Higher initial revenue tariffs should be evaluated
 Further Capital Grants to early demonstrator, pre-production and
production devices should be considered.

The actual capacity installed by 2020 and beyond is heavily dependent
on enabling actions and support policies.

Possible Strategy:
 Investigate REFIT to enable early development
 Enable further capital grant funding for promising technologies (National &
European - NER300 / FP7)
 Continue strong RD&D funding/programmes to attract and retain the best
talent and develop/attract high value companies through talent pooling
 Review progress 2015 – but always actively engage OE sector
Ocean Energy
Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
• Why?
• Ocean Energy Strategy
• Funding Sources
• Ocean Energy Industry Fund
• General
OE Development Roadmap to date
Support Pilot projects, new concepts
International
Full scale demonstrators
Small-scale arrays 10/20MW
Arrays of 100s MW
2008
Original 2020
target of 500
MW
2010
2012
Publish
updated Plan
(OREDP)
2015
2018
2020
OEDU Management to 2011
Steering Committee
DCENR, SEAI, MI, DECLG
Advisory Group
DCENR, DEHLG, CER, EirGrid, ESB
Networks, ESBI, MI, MRIA, EI, IDA,
SFI, NOW, IWEA, BG, BnM + others
as appropriate
•Oversee the implementation of the Strategy
•Support liaison with other Dept. & Agencies
•Advise on issues arising from the Advisory Grp
•To be reconstituted following OREDP
Intended to be mechanism for co-ordinated
action to support and enable ocean energy
development
Now pending revised OREDP and direction from
reconstituted interdepartmental governance mechanism.
The Programme Actions of OEDU to date
Undertake Strategic
Environmental Assessment &
establish new planning
SEA done, Planning in
process by DECLG
Intensify resource and site
assessment
On-going
Enhance Galway on-going
Belmullet lease submitted
Establish test facilities
Fund industry research, development and
demonstration
Reduced fund 2012
Completed at HMRC
In process at IMERC
Enhance Research Infrastructure
Promote development of engineering and other supply
chain capabilities
Support grid infrastructure development studies
2008
2010
2012
2015
2018
With EI on-going
Connection study for
500MW completed
2020
Ocean Energy
Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
• Why?
• Ocean Energy Strategy
• Funding Sources
• Ocean Energy Industry Fund
• General
Funding Sources
Private
European
National
NER 300,
FP7,
MaRINET
IDA / SFI
Project
National
Enterprise
Ireland
National
SEAI
Ocean Energy
Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
• Why?
• Ocean Energy Strategy
• Funding Sources
• Ocean Energy Industry Fund
• General
Industry Support Scheme
Scope
• Industry-led projects to develop and test wave and tidal energy capture
devices and systems;
• Independent monitoring of projects/technologies;
• Industry-led R&D aimed at the integration of ocean energy into the
electricity market and the national electricity grid (and network)
• Data monitoring, forecasting, communications and control of OE systems
• Specific industry-led research projects which will be carried out by research
centres, third level institutions and centres of excellence
Status
• 32 company projects supported. Value - €15m. Grant support €4.8m
Development Protocol for OE Technologies
used for Industry funding evaluation
Projects Supported
Near Shore Device
Cyan Technologies
Carnegie/CETO
Attenuator
Seapower - Hammerhead
OCRE Ltd (energy storage)
Waveberg
Wave Energy Ireland
Power Take Off
Seapower – C Pump
Limerick Wave
Blue Power
Houston Engineering
OWC
Ocean Energy Ltd
WECs
Jospa – Irish Tube Compressor
Jospa – Chuter
Key Engineering
Benson
Point Absorber
Wavebob
Tidal Energy
Open Hydro
TEL
Others / Supporting Services
IBM – acoustic
MRIA
WestWave (ESBI)
OpenTank
Technology from Ideas
Enterprise Ireland support for R&D and
company growth
Company Growth
Early stage R&D work
R&D support
Commercialisation Fund
Proof of Concept
R&D Fund <€150k
Growth Fund
R&D Fund >€150k
Mixed packages
Innovation Partnership
Innovative HPSU
Feasibility Study
Innovation Voucher
Projects should:
• A unique approach over existing alternatives
• Address a significant customer/end-user need
• The potential to positively impact the Irish economy
Enterprise Ireland
Commercialisation Fund - Proof of Concept:
The programme aims to support academic researchers to explore innovative scientific
concepts with commercial potential.
The scheme focuses on a proof of concept model where individuals or small groups
work on short applied projects to develop a product concept through to a stage where
an understanding of the commercial viability of the concept is gained.
Innovation Partnership:
The Innovation Partnership Initiative offers financial support to companies who engage
in collaborative research projects with Irish universities and institutes of technology.
Enterprise Ireland provides grants of up to 80% towards eligible costs of the research
project. The proposal process and administration of the project is managed by the
participating third level research institution.
Innovation Voucher:
Voucher for R&D work in 3rd level up to €5,000. Support proof of concept.
Enterprise Ireland
Feasibility Study:
The aim of the Feasibility Study initiative is to assist a company or individual to
investigate the viability of manufacturing a new product or process or to develop a
new internationally traded service. The purpose of the study is to provide the
necessary information to enable the promoter (and Enterprise Ireland) to reach firm
conclusions regarding the project's viability.
R&D Fund
The R&D Fund is open to existing and potential clients of Enterprise Ireland, Údarás na
Gaeltachta and the city and county enterprise boards that want to develop new and
more innovative products, processes and services.
Funding of up to €450,000 is available to help Irish companies realise their R&D
potential which will lead to increased sales and profitability
Ocean Energy
Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
• Why?
• Ocean Energy Strategy
• Funding Sources
• Ocean Energy Industry Fund
• General
Infrastructure
Cable to Galway Test Site/SmartBay
Linking Industry / Test Sites / SmartBay
Supply Chain
Projects require supply chain
to build initial prototypes and
future arrays
Supply Chain report and
database for marine Energy
including Offshore Wind,
Wave and Tidal is being
finalised.
(Enterprise Ireland & SEAI)
Summary Progress since 2009
•
•
•
•
Ocean Renewable Energy Development Plan being finalised
Interim national co-ordination/collaboration mechanisms developed
Strategic Environmental Assessment completed
New Planning system in the works
•
•
Foreshore Lease for Belmullet grid-connected wave test facility submitted
Enhanced research facilities at HMRC.
•
•
•
32 industry projects supported with high profile for a number of technologies
Complementary high-profile industry ICT initiatives as part of SmartBay
Effective Industry Association established
•
Reports produced (Economics/Ports and Shipping/Engineering Sector) to create greater
awareness of potential value and supply chain opportunities and requirements
Grid analysis enhanced – 500MW Connection study, Isles, Eirgrid Offshore Grid etc
Study on export of electricity
•
•
ICOE 2012
The National Convention Centre
October 17-19
ICOE 2012 Themes
Overall emphasis is on operational and industrial experience.
This is an international
conference, so this is an
opportunity to showcase
Ireland’s strength and expertise
in this emerging sector.
Take up a stand at the exhibition
Further Information
Thank you and further Information
Sustainable Energy Authority of Ireland
www.seai.ie/oceanenergy
Enterprise Ireland
www.enterprise-ireland.com
Marine Institute
www.marine.ie