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Creation of investor confidence: The top-level drivers for reaching maturity in marine energy

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  • Bucher, R.
  • Jeffrey, H.
  • Bryden, I.G.
  • Harrison, G.P.

Abstract

Electricity generation by tidal current and wave power arrays represents a radical innovation and is confronted by significant technological and financial challenges. Currently, the marine energy sector finds itself in a decisive transition phase having developed full-scale technology demonstrators but still lacking proof of the concept in a commercial project environment. After the decades-long development process with larger than expected setbacks and delays, investors are discouraged because of high capital requirements and the uncertainty of future revenues. In order to de-risk the technology and to accelerate the commercialisation process, we identified stakeholder-wide balanced and realisable strategic targets. The objective is to name the top-level drivers for facilitating technology maturation and thus achieving market acceptance. Our analysis revealed that the two major risks for multi-megawatt projects (funding and device performance) are directly interlinked and that co-ordinated action is required to overcome this circular relationship. As funding is required for improving device performance (and vice-versa), showcasing an “array-scale success” was identified as the interim milestone on the way towards commercial generation. By this game-changing event, both mentioned risk complexes will be simultaneously mitigated. We observed that system dynamics modelling is appropriate for an unbiased analysis of complex multi-level expert interview data. The applied research model was found to be efficient and allows a regular re-assessment of the strategic alignment thus supporting the adaptation to a complex and continuously changing socio-technical environment.

Suggested Citation

  • Bucher, R. & Jeffrey, H. & Bryden, I.G. & Harrison, G.P., 2016. "Creation of investor confidence: The top-level drivers for reaching maturity in marine energy," Renewable Energy, Elsevier, vol. 88(C), pages 120-129.
    • Handle: RePEc:eee:renene:v:88:y:2016:i:c:p:120-129
    DOI: 10.1016/j.renene.2015.11.033
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    2. Sinfield, J.V. & Ajmani, A. & McShane, W., 2024. "Strategic roadmapping to accelerate and risk-mitigate enabling innovations: A generalizable method and a case illustration for marine renewable energy," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    3. Zhang, Qianxiang & Lin, Boqiang, 2024. "The effect of energy efficiency retrofits on radical innovation: From the perspective of supply chain," Energy, Elsevier, vol. 311(C).
    4. Astariz, S. & Iglesias, G., 2016. "Co-located wind and wave energy farms: Uniformly distributed arrays," Energy, Elsevier, vol. 113(C), pages 497-508.
    5. Clemente, D. & Rosa-Santos, P. & Taveira-Pinto, F., 2021. "On the potential synergies and applications of wave energy converters: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    6. Guo, Wen & Yang, Bo & Ji, Jiong & Liu, Xiaorui, 2023. "Green finance development drives renewable energy development: Mechanism analysis and empirical research," Renewable Energy, Elsevier, vol. 215(C).
    7. Dimitri V. Val & Leon Chernin & Daniil Yurchenko, 2021. "Updatable Probabilistic Evaluation of Failure Rates of Mechanical Components in Power Take-Off Systems of Tidal Stream Turbines," Energies, MDPI, vol. 14(20), pages 1-19, October.
    8. Dimitri V. Val, 2023. "Reliability of Marine Energy Converters," Energies, MDPI, vol. 16(8), pages 1-4, April.
    9. Segura, E. & Morales, R. & Somolinos, J.A., 2018. "A strategic analysis of tidal current energy conversion systems in the European Union," Applied Energy, Elsevier, vol. 212(C), pages 527-551.

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