NCRRP Report 1 – Alternative Funding and Financing Mechanisms ...
Ocean Energy Development & Funding Mechanisms
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Transcript of Ocean Energy Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
HMRC Economics ForumApril 2012
Ocean Energy Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
• Why?
• Ocean Energy Strategy
• Funding Sources
• Ocean Energy Industry Fund
• General
Is 2020 seen as a waypoint on a much longer path?
What actions are to be developed around a longer-term vision forelectricity from marine renewable energy resources?
2030 2040 2050
10GW 25GW ? ?
Why?
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
International
OE Development Roadmap to date
2008 2010 2012 2015 2018 2020
Full scale demonstrators
Small-scale arrays 10/20MW
Arrays of 100s MW
Publish updated
Plan (OREDP)
Support Pilot projects, new concepts
Original 2020 target of 500
MW
Steering CommitteeDCENR, SEAI, MI, DECLG
Advisory GroupDCENR, 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
OEDU Management to 2011
Now pending revised OREDP and direction from reconstituted interdepartmental governance mechanism.
The Programme Actions of OEDU to date
Establish test facilities
Fund industry research, development and demonstration
Enhance Research Infrastructure
Undertake Strategic Environmental Assessment & establish new planning
Intensify resource and site assessment
Promote development of engineering and other supply chain capabilities
SEA done, Planning in process by DECLG
On-going
Enhance Galway on-goingBelmullet lease submitted
Reduced fund 2012
Completed at HMRCIn process at IMERC
With EI on-going
Connection study for 500MW completed
2008 2010 2012 2015 2018 2020
Support grid infrastructure development studies
Ocean Energy Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
• Why?
• Ocean Energy Strategy
• Funding Sources
• Ocean Energy Industry Fund
• General
Funding Sources
Project
Private
EuropeanNER 300,
FP7, MaRINET
NationalSEAI
NationalEnterprise
Ireland
NationalIDA / SFI
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 Technologiesused for Industry funding evaluation
Projects Supported
Near Shore DeviceCyan TechnologiesCarnegie/CETO
AttenuatorSeapower - HammerheadOCRE Ltd (energy storage)WavebergWave Energy Ireland
Power Take OffSeapower – C PumpLimerick WaveBlue PowerHouston Engineering
OWCOcean Energy Ltd
WECsJospa – Irish Tube CompressorJospa – ChuterKey EngineeringBenson
Point AbsorberWavebob
Tidal EnergyOpen HydroTEL
Others / Supporting ServicesIBM – acousticMRIAWestWave (ESBI)OpenTankTechnology from Ideas
Commercialisation Fund Proof of Concept
Innovation Partnership
Feasibility Study
R&D Fund <€150k
Innovative HPSU
Growth Fund
Mixed packagesR&D Fund >€150k
Early stage R&D work R&D support Company Growth
Enterprise Ireland support for R&D and company growth
Projects should:
• A unique approach over existing alternatives
• Address a significant customer/end-user need
• The potential to positively impact the Irish economy
Innovation Voucher
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 FundThe 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
Enterprise Ireland
Ocean Energy Development & Funding Mechanisms
Ocean Energy Development & Funding Mechanisms
• Why?
• Ocean Energy Strategy
• Funding Sources
• Ocean Energy Industry Fund
• General
InfrastructureCable 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 2012The National Convention Centre October 17-19
ICOE 2012 Themes
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
Overall emphasis is on operational and industrial experience.
Further Information
Thank you and further Information
Sustainable Energy Authority of Irelandwww.seai.ie/oceanenergy
Enterprise Irelandwww.enterprise-ireland.com
Marine Institutewww.marine.ie