Ocean Energy Cost-Effective Resource
An updated Cost of Energy analysis of Minesto’s ocean energy technology shows substantial improvements compared to previous estimates. “These new results convince me that our technology is transforming ocean energy into one of the most cost-effective energy resources,” says Dr Martin Edlund, CEO of Minesto.
As part of its first commercial-scale project, Minesto together with ITPEnergised has completed an updated Levelised Cost of Energy (LCOE) analysis of Minesto’s marine energy converter based on new knowledge of the system, its potential and its costs. Projections now indicate that Minesto’s LCOE will already fall to €100/MWh after 100MW cumulative installed capacity in tidal streams. Previous estimates showed a 50% higher cost level. This means that Minesto’s technology will be more cost-effective more quickly than established energy, such as new nuclear power.
Installing arrays of Minesto devices in continuous ocean currents, providing a much higher capacity factor than tidal streams, will have an even greater impact on the LCOE, with costs falling below €50/MWh following the installation of 100MW cumulative capacity. Mr Edlund: “This claim is unique in the ocean energy industry – but so is our technology. It is the only known and verified marine energy product that can be deployed in continuous low-flow ocean currents, providing cost-effective renewable base load power generation to grids both large and small all over the world.”
He continues: “The figures are underpinned by our light-weight design, our operations & maintenance concept and the fact that we will be operating at low-flow sites. It should also be noted that this analysis is based on conservative learning rates and initially high operating and maintenance cost levels expected from all new innovative solutions.” The substantial LCOE improvement has two main drivers, concludes Edlund: “Firstly, the expected performance of each system has improved. This can be attributed to our quarter-scale test results, new simulations data and a new verified turbine blade design developed in-house. Secondly, our operating and maintenance concept has considerably improved.”