Capital costs in tidal stream energy projects – A spatial approach. (15th July 2016)

• Record Type: Journal Article
• Authors: Vazquez, A.; Iglesias, G.
• Is Part Of: Energy. Volume 107(2016)
• Page Start: 215
• Page End: 226
• Publication Date: 2016-07-15
• Subjects: Tidal stream energy -- Levelised cost of energy -- Capital costs -- Economic map -- Geospatial variability -- Bristol Channel; Power resources -- Periodicals; Power (Mechanics) -- Periodicals; Energy consumption -- Periodicals; 333.7905
• DOI: 10.1016/j.energy.2016.03.123
• Languages: English
• ISSNs: 0360-5442

Abstract

Abstract: Tidal stream energy projects involve high amounts of capital, for which ex-ante economic assessments are crucial. Unfortunately, the existing models to estimate the capital costs of a tidal stream energy project are often oversimplified. Focused on single estimates on a per installed power basis, such models fail to capture the all-important sensitivity of the capital costs to project site-specific characteristics (water depth, distance to the shoreline, etc.) The objective of this work is twofold: (1) to develop a new formulation for estimating the capital costs of a tidal stream farm, and (2) to implement this formula in a Matlab-based tool coupled with a Navier-Stokes solver and thus deliver the spatial distribution of this cost. As a case study, the new tool is applied to the Bristol Channel – the single largest resource area for tidal energy in the UK. Here, the best sites to install tidal stream farms are identified, with a cost comparable to that of offshore wind energy. Simulation results show that the proposed method is more efficient than the existing approaches. The results of this work have relevant policy implications in that they serve as decision criteria for allocating tidal stream projects and for designating supporting mechanisms. Highlights: An approach for estimating capital costs in tidal stream energy projects was proposed. Spatial constraints were considered in the approach. The tool was applied to a case study in the Bristol Channel and Severn Estuary. The spatial distribution of the capital costs was obtained. Several areas within the domain were identified as cost-competitive tidal sites.