Ocean Energy promotion
From a system perspective, ocean energy enjoys several advantages vis-à-vis volatile renewables such as wind and solar. However, it is still expensive compared to those technologies. On the other hand, ocean energy technologies can be expected to follow the same cost reduction pathways of wind and solar energy, once their designs become mature and they can be manufactured at larger scale. However, it will be crucial for a successful industrial roll-out to sufficiently address the economic challenges. There are many aspects to these challenges, but it requires a significant increase in the number of projects, in order to achieve cost reduction and financial viability.
One important source of ocean energy project financing could be the official development assistance and climate financing. For obvious reasons, this funding seems to be a challenging matter for the respective institutions. We have therefore entered into a dialogue with development banks and other financial institutions which focus on financing innovative projects for cutting green house gas emissions to develop tailor-made concepts to finance ocean energy developments.
While respective technologies have successfully been piloted for many years, the most demanding challenge for commercialization today is the access to finance, adequate business models and implementation and risk mitigation concepts.
The objective of IzN in OE development is to analyse the needs of OE stakeholders such as host countries/utilities, manufacturers, financing institutions and donors, and subsequently to design concepts for projects with emphasis on sound business models and financing instruments.
Further information can be found here.