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Issues in OTEC commercialization

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  • Lavi, Gay Heit

Abstract

The commercialization of a new capital intensive technology requires coordination between government and industry. Government regulation of the energy industry can hinder its commercial development. On the other hand, government financial incentive is essential to induce industry to invest in a new technology such as OTEC. Incentives will be necessary in the early phases of development both for the manufacturers of OTEC systems and components and for the owner/operators of OTEC power plants. The various incentives are analyzed and their impact on manufacturers of, investors in, and users of OTEC technology is discussed. Analysis shows that OTEC is technically and economically ready to enter the electric utility market in tropical islands. For the larger U.S. mainland market, economies of scale are expected to reduce the capital cost to a low enough level where OTEC can be competitive.

Suggested Citation

  • Lavi, Gay Heit, 1980. "Issues in OTEC commercialization," Energy, Elsevier, vol. 5(6), pages 551-560.
    • Handle: RePEc:eee:energy:v:5:y:1980:i:6:p:551-560
    DOI: 10.1016/0360-5442(80)90079-1
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    Cited by:

    1. Cavrot, D.E., 1993. "Economics of Ocean Thermal Energy Conversion (OTEC)," Renewable Energy, Elsevier, vol. 3(8), pages 891-896.

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