ESB International (ESBI) has entered an agreement with the pioneering tidal energy company Marine Current Turbines (MCT) to develop an initial phase of a 100MW tidal energy project off the Antrim coast in Northern Ireland.

ESBI and MCT will work together to submit a proposal to the forthcoming Marine Leasing Round in Northern Ireland to secure an Agreement for Lease from the Crown Estate to commence formal consenting of the project. If successful, and subject to the achievement of consent, the initial phase of the project, which will use the MCT SeaGen device, could be in operation by 2018. The ESBI/MCT project will assist Northern Ireland in achieving its marine renewable energy targets as outlined in the DETI Strategic Action Plan which calls for 300MW of tidal energy by 2020.

SeaGen is the largest and most powerful tidal stream turbine in the world and the only one that is regularly generating electricity for customers, having been accredited by OFGEM, the UK industry regulator, as an “official” power station. The award-winning 1.2MW turbine has been operating in Northern Ireland’s Strangford Lough since April 2008 and last month (August) achieved another operational milestone by delivering its 2 millionth kWh of power to the grid. Thanks to Strangford being an exceptionally energetic location, SeaGen regularly produces as much electricity as an average off-shore wind turbine of double the rated power. This power is already being sold by ESB’s retail electricity supply business, ESB Independent Energy, to customers in Northern Ireland.

Safeguarding the environment is a key issue and ESBI is preparing an environmental scoping report on the project as an initial step in undertaking a full environmental impact assessment. In order to gain a thorough understanding of the tidal potential, ESBI has also undertaken tidal resource measurements off the Antrim coast over the summer months. This data is currently being analysed and it is planned to undertake further surveys in the coming months.

ESB has a corporate target to develop 150MW of ocean energy in Ireland by 2020 and the proposed tidal project off the Antrim Coast is a key project in delivering this target. “Our aim is to use our experience and technical strength to support the development of a viable ocean energy industry in Ireland and this project is an important step in realising that goal,” says Padraig McManus, chief executive of ESB.

ESB’s retail subsidiary, ESB Independent Energy, already supplies tidal energy to its customers in Northern Ireland through its purchase of the electricity output from the SeaGen tidal facility in Strangford Lough.

By 2020, ESB will be producing one-third of its electricity from renewable generation, delivering over 1,400MW of wind generation (with over 100MW already installed), and exploiting the potential of wave, tidal and biomass resources. ESB Networks will invest Eur11 billion in vital infrastructure to facilitate the development of up to 6,000MW of wind power on the island of Ireland.

Martin Wright, managing director of Marine Current Turbines, comments: “This agreement underlines the success to date of the SeaGen project in Strangford Lough but importantly the real and growing commercial interest in tidal energy. Our agreement with ESBI, which has been a valued shareholder in MCT for 2½years, confirms MCT’s tidal technology at being in the forefront in the race to harness the power of tides.”

The Confederation of British Industry (CBI) is warning that plans to hand back powers to ministers to approve major infrastructure projects could lead to further delays in building vital energy schemes in the UK.
The UK’s leading business group says the Government’s decision to replace the independent Infrastructure Planning Commission (IPC) with a Major Infrastructure Unit is making investors nervous about committing to large-scale building projects.

The CBI is particularly concerned about whether ministers will be able to deliver timely planning decisions under the revised system, and highlighted applications for 37 power plants, inherited from the previous government, that are still awaiting ministerial approval under Section 36 of the 1989 Electricity Act.

The delayed applications predate the formation of IPC and are equivalent to 17.5 gigawatts, around a fifth of the UK’s current electricity generation capacity. They include gas- and coal fired power stations, on- and off-shore wind farms, biomass, wave and tidal projects. Some of the projects have been awaiting a decision for three years.

The CBI wants the Government to clear the delayed applications in six months in order to give investors confidence that its revised planning system will be able to deliver timely decisions.

“The Government must get a grip on planning. We need to build new low-carbon energy sources, including wind, biomass, gas, nuclear and clean coal plants. These are essential for securing our energy supplies and meeting emissions targets,” explains Dr Neil Bentley, CBI director of business environment. “In the next six months, the Government must clear the backlog of delayed planning applications. This will send a strong signal to investors that it is serious about fixing the planning system. The new planning regime must be streamlined, with ministers able to make timely decisions on infrastructure projects in the national interest. We need a planning system that encourages, not deters investment.”

The CBI recently set out actions the Government must deliver within six months to unlock the £150 billion of private investment needed to renew the energy system. Among the measures outlined in the report ‘No time to lose: Deciding Britain’s energy future’ are: tackling delays in the planning system, speeding up the development of carbon capture and storage (CCS) technology, and providing more detail on electricity market reform, its renewable energy policy, and the implications of the Emissions Performance Standard.

The opportunity to derive energy from the ocean is significant in Ireland, both from wave and from tidal sources. The potential is such that ocean energy represents a critical opportunity to create substantial wealth and employment on this island over the next twenty years and beyond, according to the recent white paper by the Marine Renewables Industry Association (MRIA), which represents Ireland’s marine renewables industry in the ocean energy fields of wave and tidal.

Key to this transformation of the island of Ireland into ‘Europe’s Battery’ is the achievement of the target set in the Republic by Government to have 500MW of wave and tidal capacity in operation by 2020.

The MRIA recognises that achieving the 500MW target over the next ten years will require a major co-ordinated effort across all Government departments and agencies and a focus on a small number of sea areas for developments towards 2020.

The MRIA proposes that four Initial Development Zones (IDZs) for ocean energy be prioritised by Government and that efforts to achieve the 2020 target be focused in these zones. The white paper demonstrates that this proposal is consistent with broad Government economic development policy as well as policies in energy, spatial planning and regional planning.

This white paper hails the progress made in ocean energy in Ireland to date, highlights the challenges which must be overcome and proposes measures to expedite further development.

Early Mover

Wavebob.

The white paper points out that Ireland is one of the international ‘early movers’ in developing the technology required to capitalise on the ocean energy resource and Irish companies like Wavebob, Ocean Energy and Open Hydro are among the leading developers in the world of wave and tidal energy conversion technologies.

Ireland is also well represented in other key elements of the emerging ocean energy industry. The project developer community – including companies such as Vattenfall (Tonn Energy), SSE Renewables (formerly Airtricity) and ESBI, consultants such as Arup, R&D businesses like Pure Marine and supply chain firms such as Lotusworks and Techworks Marine – are all engaged with the industry and ready to scale up as it develops.

Ireland has excellent research and test facilities in place at the quarter Scale Wave Energy Test Site in Galway Bay and at facilities such as those belonging to Queen’s University in Belfast. The Sustainable Energy Authority of Ireland (SEAI), with the support of a number of MRIA industry companies, is developing the new Wave Energy Test Site off Belmullet, County Mayo and the planned relocation and expansion of the Hydraulics and Maritime Research Centre and other facilities as part of the MERC3 project in Cork is another positive step – construction at MERC3 will commence in 2011.

Significant Investment

The Government has set a target of 500MW of wave and tidal energy capacity to be delivered by 2020. The scale of the challenge in meeting this target is significant with the estimated cost of devices alone being in the region of at least Eur1.5 billion with significant investment required also in supporting project infrastructure. Thus, total capital investment of several billion may be required to meet the Government target, possibly creating several thousand new jobs to support this emerging industry.

MRIA believes that ocean energy technology will mature and become commoditised after 2020 as has happened in the wind energy sector over the past decade. The cost of producing electricity from wave and tidal energy sources will fall and the industry will develop an export market via interconnectors to other countries, in particular to the UK. Accordingly, it is important to create both an economic and a regulatory environment that would create more certainty for the development of ocean energy, particularly for investors. Transparency, predictability and certainty in statutory consenting processes are important considerations for investors who will take business risks of unprecedented scale with ocean energy investments.

Renewable energy sources accounted for 62% (17GW) of the new electricity generation capacity installed in the EU27 in 2009, according to the ‘Renewable Energy Snapshots’ report, published recently by the European Commission’s Joint Research Centre (JRC). The share rose from 57% in 2008. For the second year running, wind energy accounted for the largest share of the new capacity – 10.2 GW out of the 27.5 GW built, representing 38% of the total. In absolute terms, renewables produced 19.9% of Europe’s electricity consumption last year.

In 2009, and in absolute terms, about 19.9% (608 TWh) of Europe’s total electricity consumption (3042 TWh) came from renewable energy sources. Hydro power contributed the largest share (11.6%), followed by wind (4.2%), biomass (3.5%), and solar (0.4%).

With regards to the new capacity constructed that same year (27.5 GW), among the renewable sources, 37.1% was wind power, 21% photovoltaics (PV), 2.1% biomass, 1.4% hydro and 0.4% concentrated solar power, whereas the rest were gas fired power stations (24%), coal fired power stations (8.7%), oil (2.1%), waste incineration (1.6%) and nuclear (1.6%).

If current growth rates are maintained, in 2020 up to 1400 TWh of electricity could be generated from renewable sources, the report concludes. This would account for approximately 35-40% of overall electricity consumption in the EU, depending on the success of community policies on electricity efficiency, and would contribute significantly to the fulfillment of the 20% target for energy generation from renewables.

However, the report advises that some issues need to be resolved if the targets are to be met. Particular areas of focus include ensuring fair access to grids, substantial public R&D support, and the adaptation of current electricity systems to accommodate renewable electricity. The study highlights that cost reduction and accelerated implementation will depend on the production volume and not on time.

Summary of 2010 Snapshot Findings

Wind energy: with more than 74 GW of total installed capacity in 2009, has already exceeded the 2010 white paper target of 40 GW by more than 80%. The European Wind Association’s new target aims for 230 GW of installed capacity (40 GW offshore) by 2020, capable of providing about 20% of Europe’s electricity demand.

Biomass: if current growth continues, electricity output from biomass could double from 2008 to 2010 (from 108 TWh to 200 TWh). However, other energy uses such as heat and transport fuels compete for this particular source, which could potentially hinder the development of bioelectricity. Being storable for use on demand increases its importance as a source of electricity.

Concentrated Solar Power (CSP): installed capacity is still relatively small in Europe: 0.430 GW in May 2010, about 0.5% of the total, but is steadily increasing. An estimated 30 GW could be installed by 2020 if the European Solar Industry Initiative ESII is realised. Most CSP projects currently under construction are located in Spain.

Technologies such as geothermal, tidal and wave power have not yet been included in the Renewable Energy Snapshots.

Solar Photovoltaic:

since 2003, the total installed capacity has doubled each year. In 2009 it reached 16 GW, which represents 2% of the overall capacity. The growth will continue, as for 2010, installations of up to 10 GW are expected. Solar photovoltaic has also exceeded the capacity predictions formulated by in the EU white paper on renewable sources of energy.

Other sources of power: technologies such as geothermal, tidal and wave power are still at the R&D stage, so they have not yet been included in the Renewable Energy Snapshots. Yet, they are likely to be introduced to the market within the next decade. As far as hydro generation is concerned, no major increase is expected, as most of the resources are already in use. However, pumped hydro will play an increasingly important role as in a storage capacity for the other renewable energy resources.

Belfast shipyard Harland and Wolf has won the contract to construct a tidal turbine for Scotrenewables, the Orkney-based marine power company. Producing 250kw of energy, the SR250 tidal turbine will weigh around 80 tonnes and will measure 30m in length with twin 8m diameter rotors, giving the system a very competitive power to weight ratio.

Scotrenewables used local fabrication firms to construct a fifth scale prototype model but Harland & Wolff has been chosen to construct the full size SR250. “We have chosen Harland & Wolff to construct the SR250 prototype because of their outstanding pedigree in the field of shipbuilding, offshore oil and gas and, more recently, offshore renewables,” says Mark Hamilton, project leader at Scotrenewables.

“Our input was to assist their engineers to develop the design to make it production friendly. This makes it cheaper and enhances quality,” explains Fred Black, engineering manager of Harland & Wolff. “We have been very active in the renewables market for many years now.”

Work on the SR250 floating tidal energy device has already commenced (see picture) and installation at the European Marine Energy Centre in Orkney is scheduled for March 2011.

Other Renewable Energy Contracts

The Orkney project is the latest in a series of renewable energy contracts won by Harland and Wolff.

Earlier this year, Harland and Wolff Heavy Industries completed the construction of an offshore wind energy transformer in a joint project. The contract was awarded by German offshore construction company Weserwind on behalf of BARD Engineering.

The offshore transformer platform serves as a hub for wind farms in the North Sea and converts the energy into electrical current and connects this to the European grid system. The transformer effectively generates 400mW, the equivalent of Kilroot power station.

Weserwind commissioned the Belfast yard to assemble and erect the jacket structure (lower sections) of the offshore transformer platform in the yard’s main building dock. The floatable topside (upper section) was built in Latvia and was delivered to the yard by sea. Harland and Wolff provided facilities and support services acting as an assembly and logistics base to Weserwind.

Harland and Wolff also recently completed a contract for the assembly of 60 wind turbines for an offshore site near the south west Scottish coast of the Irish Sea.