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BDI – Practical Guide – p. 2
Practical Guide
Contents
1. INTRODUCTION ........................................................................................................................................3
1.1. Scope of the study ...........................................................................................................................3
1.2. APC partners ....................................................................................................................................4
2. OBJECTIVES OF THE STUDY ......................................................................................................................7
2.1. This study should, in particular, take into account the following issues: ........................................7
3. RANGE OF STUDY .....................................................................................................................................7
3.1. Cross border cooperation ................................................................................................................8
3.2. Industrial Development ...................................................................................................................8
3.3. Other Economic Development Issues ........................................................................................... 10
3.3.1. Marine Environment ............................................................................................................. 10
3.3.2. Financial Engineering and Insurance .................................................................................... 10
3.3.3. Maritime Risks....................................................................................................................... 10
3.3.4. Other Activities ..................................................................................................................... 11
3.4. Issues for Research and Innovation .............................................................................................. 11
3.5. Energy Issues ................................................................................................................................. 11
3.5.1. Regulation of local energy systems....................................................................................... 12
3.5.2. Smart Energy Networks ........................................................................................................ 12
3.5.3. Transport and storage ........................................................................................................... 12
3.5.4. Integration schemes in energy planning ............................................................................... 13
3.6. Education and Training ................................................................................................................. 13
3.7. Economical and Financial Issues ................................................................................................... 13
3.7.1. Funding ................................................................................................................................. 13
3.7.2. Cooperation between Enterprises ........................................................................................ 14
3.8. Maritime Issues ............................................................................................................................. 14
3.9. Governance Issues ........................................................................................................................ 14
BDI – Practical Guide – p. 3
1. INTRODUCTION
The Atlantic Power Cluster seeks to exploit the renewable energy potential of the marine and coastal
environment of the participating regions. The APC regions span the Atlantic coastline including regions
from the UK, Ireland, France, Spain and Portugal. They are represented by 16 partner organisations, some
of which are regional authorities and some research or technical centres, as shown in Fig. 1 and table,
below.
The project is supported by the Atlantic Area Operational Programme 2007 – 2013. It started in February
2012 and will run for 24 months. One of its activities is the Practical Guide, conducted within the “Work
Package 4, Business Development”.
This study was put together by Bretagne development Innovation with data provided by a sea and littoral
expert.
1.1. Scope of the study
The development of the exploitation of Renewable Marine Energy (RME) for these regions is of particular
importance. Aware of the potential energy, economic and social development associated with this,
Atlantic regions therefore wish to launch a strategic and economic study to define in this policy area their
strategy for development and co-operation.
They actively support the development and exploitation of marine energy and are already collaborating
through various programmes and projects, including the APC (http://atlantic-power-
cluster.eu/index.php/en/) project conducted within the framework of the European programme
INTERREG IV B combination of atlantic regions. The European level is also important in this study, which
aims to create a social and political environment suitable for marine energy and to strengthen the
capacity for innovation and competitiveness of European regions.
BDI – Practical Guide – p. 4
1.2. APC partners
BDI – Practical Guide – p. 5
BDI – Practical Guide – p. 6
Fig. 1: Map of Partners
BDI – Practical Guide – p. 7
Partner Organisation Partner Region 1 SODERCAN Cantabria (ES)
2 FUAC –Foundation University of La Coruña, ES Galicia (ES)
4 Bretagne Innovation, FR Bretagne (FR)
5 FAEN –Asturias Energy Agency, ES Asturias (ES)
16 CIEMAT – Spanish Environment Energy Research Centre, ES Spain (info provided on
Asturias Region) (ES)
6 Regional Council of Basse-Normandie, FR Basse-Normandie (FR)
8 CIT – Cork Institute of Technology, IE Ireland (IE incl. N Ireland,
UK) 3 Galway County Council, IE
9 EVE – Basque Government Energy Agency, ES Basque Country (ES)
10 Wave Energy Centre, PT Portugal
(North, Centre, Lisbon &
Azores) 11 INEGI, PT
12 SEGEC – Scottish European Green Energy Centre, UK Scotland (UK)
13 Pôle des Eco-Industries de Poitou –Charentes, FR Poitou –Charentes (FR)
14 Société Publique Régionale des Pays de la Loire, FR Pays de la Loire (FR)
15 Regional Council of Aquitaine, FR Aquitaine (FR)
7 CPMR –Atlantic Arc Commission, FR (Study coordination)
(Partner number 17, Regen SW UK, has withdrawn from the project and had been replaced by Plymouth
University after the study was launched).
2. OBJECTIVES OF THE STUDY
The economic outlook, energy and social development of RME are challenging, the stakes are high but the
difficulties numerous. Providing strong support of regional and local policies and a concerted action by all
public and private partners are necessary conditions to this development, and require the development of
a coordinated strategy.
APC regions, supported by the European Union, wish to conduct a study whose main objective is the
development of strategic elements for the coordinated development of MRE in both regions to finally
supply the strategy to the industry and policy makers, to make the most of this potential development in
economic terms and in terms of local employment.
2.1. This study should, in particular, take into account the following issues:
• Energy supply and decentralised energy systems
• Economic development (institutional support structures, businesses, industrial use or not, cluster
development and know-how exportability)
• Port Infrastructure
• Research and innovation, training
• Regulatory aspects
• Joint activities
3. RANGE OF STUDY
BDI – Practical Guide – p. 8
Ideally, the study should take into account all potential issues associated with the development of RME. It
should also appear with regard to each of these potential issues, the potential associated benefits, the
risks, the external factors and more generally all critical factors likely to have an influence on strategy.
Among the key issues identified to date, by APC partners in particular, include:
• Industrial issues
• Port and logistic issues (land, sea)
• Energy Issues
• Other direct and indirect economic issues
• The challenges of research and innovation
• Academic issues and training
• The environmental and social issues
• Institutional and regulatory and governance issues
• Issues associated with the development of European regional and national marine and coastal
policies
A number of questions related to these issues are outlined below as a guide. This list is probably not
exhaustive and the study may reveal other important issues that do not feature.
3.1. Cross border cooperation
Beyond the common perception of the Marine Renewable Sector stakeholders, please analyse where the
strengths, weaknesses, opportunities and threats of both regions could benefit from the cross border
cooperation.
In particular please find specific correlation when one region can be help by strengths in the other region,
in order to create cooperation, when it is more beneficial than competition.
3.2. Industrial Development
Industrial Development associated with the design, implementation and operation of production facilities
is one of the major challenges of RME for APC partners. Marine energy can be exploited in various forms
(wind, waves, swell, heat or cold, currents, salinity gradients or temperature...), associated with different
industrial sectors. Even if all energies are not usable on the coasts and marine areas of APC partners
regions, all industries/sectors are based on a common core of knowledge and industrial know-how (off-
shore) and marine energy, and it is possible for APC regions to develop their potential (for example in
research, innovation or industrial development) even in sectors where there is no potential local1 energy:
all sectors (fixed wind farm, floating wind farm, tidal energy, wave energy, thermal energy: heat pumps,
1 Ocean thermal energy, in which the resource is available in tropical zones, or exploitation of the thermohaline
currents
BDI – Practical Guide – p. 9
SWAC2, ETM..., osmotic energy) should be taken into account, and no sector should be eliminated without
careful consideration of all options associated with direct or indirect economic development.
Each sector will be examined in terms of associated industrial development opportunities and in its
entirety (design, project development, Construction, O & M, dismantling and recycling).
The analysis of industrial development opportunities takes into account the possible mechanisms for this
development:
• development of existing companies and industrial facilities
• restructuring of companies and modification of existing installations
• creation of new businesses or new business networks (see below)
Emphasis will be placed on the following aspects:
3.2.1. Development / Restructuring of Port Capacity
Construction activities and maintenance of marine energy parks could lead to development and
restructuring of the existing port facilities, and re-distribute port functions among several locations. It is
desirable that this development is designed with a strategic vision beyond mere competition between
ports, with a view on European and national optimization.
3.2.2. Industrial Co-development
It is a matter of looking for potential industrial synergies, between different MRE sectors, or between
MRE and other industries.
• Example: swell/waves and port works
• ETM and drinking water (eg: island energy systems, areas where RME are abundant and water
resources are limited) • Associated risks
An audit of business categories was recommended:
- mapping the supply chain, building a database of companies - Communicate MRE jobs through creating partnerships, consortia, and promoting opportunities for
joining consortia
Engineering businesses need capital investment. This can encourage diversification and give new opportunities to supply chain businesses.
Work with utilities to lower costs and promote investment in areas with higher existing costs
Look at wider opportunities for business – be open about the real opportunities in MRE, and define areas for co-development/growth as MRE alone may not be enough to sustain a business plan.
Identify regional strengths/weaknesses and define cooperation opportunities (made in WP2, CRPM).
3.2.3. Regional Pattern of Economic Development (APC regions)
2 Seawater Air Conditioning
BDI – Practical Guide – p. 10
Potentially, marine energy is an excellent engine for economic development; built on a broad foundation
of knowledge and skills valuable in other maritime or mainland areas, this sector is likely to contribute to
the competitiveness of both regions and their endogenous growth without undue risk of hyper-
specialisation. The study should identify how this sector can be integrated with a maximum contribution
in the regional pattern of economic development in APC regions, notably contributing to the priorities
identified in the economic strategy of each APC regions. Experiences of public-private partnerships are to
be analysed.
3.3. Other Economic Development Issues
Beyond industrial development, there is significant potential for economic development in areas directly
or indirectly related to the production of renewable marine energy.
3.3.1. Marine Environment
The development of RME based on a set of skills and expertise in the marine environment: knowledge of
the physical and biological marine environment and maritime activities in coastal areas.
APC regions have significant assets, with access to many marine research organizations and expertise.
They are in a good position to develop and offer a full range of expertise by public or private consulting
firms, for example in the following areas:
• forecasting and prediction (estimation of producible energy, management and network
integration)
• RME project development
• environmental assessment and monitoring
• geotechnology
• etc.
3.3.2. Financial Engineering and Insurance
The exportation of any knowledge in MRE will go through complete control over the construction of
projects in this field, including the financial engineering: it will indeed be able to propose not only an
industrial energy project that is socially, economically and environmentally acceptable but also the
corresponding financial solutions.
The insurance industry will develop around new projects, opening up development opportunities to
companies that have been able to invest to master this new market.
There is also potential for development around the guarantees associated with reversible use of public
space by the production facilities.
3.3.3. Maritime Risks
BDI – Practical Guide – p. 11
The emergence of MRE, a new sector in the maritime industry, poses new challenges to maritime risk
management (collision, safety, notes, etc.), but also opens the way for the development of valuable
know-how in a wide area, eventually in synergy with other maritime sectors already dealing with issues of
surveillance, security and safety.
3.3.4. Other Activities
The development of marine energy can support the development of other activities and cross border
cooperation, specific or not:
• Tourism: ecotourism, technical (visits to parks or facilities)
• Activities of congresses, conferences
• Joint activities (offshore aquaculture)
• Other joint activities (diving schools, etc.)
3.4. Issues for Research and Innovation
The development of the use of MRE rests on a broad base of research and innovation over a large number
of areas. These include, in an indicative sense, oceanography and meteorology, modeling of energy
systems, studies on the optimization of these systems (combination of land and marine resources), the
regulation of energy systems, materials…
Innovation could rely on existing clusters or poles of competitiveness, or on new specialized clusters
(which may involve organizations from APC regions in particular, refer to the “Espace Atlantique”.
A network of universities and research organizations could be structured in the field of MRE, and in all
related fields, including:
• Environment,
• meteorological, oceanographic forecasts,
• law,
• economy.
Development must rely on a network of test sites tailored to each of the sectors.
The study should identify other organizations of this kind in Europe (eg: Renewable UK) and analyse their
actions.
3.5. Energy Issues
Beyond the aspects of production, marine energy is likely to change the energy situation in coastal areas,
especially APC regions. MRE could indeed potentially meet all long term electricity needs, and beyond
some needs (mobility, heat) currently met by other sources.
BDI – Practical Guide – p. 12
This potential energy transition must be accompanied by a thorough study of the local energy systems,
which should include the following issues:
• Smart grids – these are a great opportunities for communities, • Storage.
3.5.1. Regulation of local energy systems
Currently renewable energy sources are often considered primarily as a supplement limited to traditional
sources (fossil, nuclear), which leads to avoiding the question of their gradual replacement - possibly full
term - of these traditional sources.
The integration of increasing amounts of onshore and marine renewable energy produced locally opens
the way for development of decentralized energy systems at local or regional level, compliment (and
eventually as alternatives) to centralized systems, particularly in outlying regions such as APC regions,
who are disadvantaged in the context of centralized networks, while they are favored in terms of access
to marine energy resources.
3.5.2. Smart Energy Networks
Coastal regions with significant marine energy resources can expect to meet, beyond their own electricity
needs, part or all of their other energy needs. This development will therefore involve the electrical
network type "smart grids" but also, without a doubt, eventually the development of multivector energy
networks (electricity, gas, heat...) associated with gateways ("electricity to gas," etc.).
Control of these areas is potentially both a key issue for the development of MRE, and potential
development of know-how widely exported beyond the scope of MRE and perimeter coastal and
maritime regions.
3.5.3. Transport and storage
Marine energy available in the northwest Atlantic Ocean is intermittent and / or fatal; their integration
with the energy system requires that careful consideration is given to the control of transportation issues
(to compensate for the lack of correlation between production areas and consumption areas) and storage
issues (to compensate for the lack of correlation between periods of production and the periods of
consumption). This question is usually discussed only in terms of the electrical interconnections or
centralized storage. There exists decentralized storage solutions around which can be built potential
industrial sectors.
MRE sectors with the most potential (wind, waves and swell, thermal energy, thermohaline currents) will
in the medium or long term exploit offshore areas away from coastal and terrestrial power systems and in
some cases away from areas where energy may be consumed: this poses a problem of long-distance
transport and ultimately integration into the gird.
BDI – Practical Guide – p. 13
In addition, potential MRE is superior to current electricity needs alone, and MRE may eventually
compete with all present energy systems (sectors including oil and gas), little can be transported and
stored using a vector more suitable than electricity.
Development of the sector in the medium term will therefore require the mastering of these new issues,
and the question arises as to whether peripheral have the opportunity to develop skills and industrial
capabilities in these areas also important at European level.
3.5.4. Integration schemes in energy planning
MRE are confronted by difficulties integrating with terrestrial networks generally designed as a
centralized model, where they fall more in competition with terrestrial ENR.
Taking them into account in the strategic planning is a major challenge; among relevant policy schemes
that may be mentioned for each APC partners regions, which would integrate a larger share in the future
production of marine energy and their value in the regional energy system.
3.6. Education and Training
MRE is a recent sector, where large-scale operational development will require high-level training
(engineers and technicians). The needs will cover all fields of MRE, at all stages of project development to
industrial exploitation in particular financial engineering, forecasting production, risk management and
environmental impacts.
The challenges of training in these areas for APC regions will be analyzed in order to identify strengths and
weaknesses, opportunities (regional or global openings) and threats (competition, uncertainty, skills and
governance).
Particular attention should be spent on research for synergies between existing maritime training and the
future (polyvalent training, in-house training, complementary support training accompanying mutations
in fishing activities or commercial...) relying in particular on existing maritime training institutions and
highlighting the possibility of organizing a network to cover the field completely for future needs. The
possibility of developing training programs to meet the needs of one or more systems of RME should be
discussed.
3.7. Economical and Financial Issues
3.7.1. Funding
The economic model associated with MRE is very different from that of conventional energy: low
operating costs (since the basis of the energy is free), but high in capital costs. Their development but also
the governance of future associated energy systems, notably depends on the capacity of local
stakeholders to mobilize long-term financing to high levels.
Based on benchmarking experiences in other countries or regions, the study should propose financing
schemes, highlighting the strengths and weaknesses of each of the existing systems and their potential
interest for each APC regions.
BDI – Practical Guide – p. 14
3.7.2. Cooperation between Enterprises
The study should focus on approaches to bring together small to medium sized companies (PME/PMI) in
order to enable them to respond collectively to the Invitations to Tender (AO) and arrange funding to
meet the challenges and legal solutions to develop this type of partnership.
The study should rely on benchmarking of existing experiences from renewable energy projects,
particularly in Germany, Denmark and Scotland (eg: Community Energy Scotland). This will also consider
the contribution of initiatives across territories or sectors to network companies (eg: Bretagne Pole Naval
or NEOPOLIA).
3.8. Maritime Issues
MRE is a new challenge with new actors in model maritime environment, in the true sense and
figuratively, by centuries of history; their maritime integration (acceptability, synergies...) is an important
issue, which functions in particular:
• by clarifying the legislative and regulatory framework,
• by a reflection on the regulation of various uses of the maritime area, starting with the coastal
area,
• by searching for synergies between maritime activities susceptible to the improvement of project
economics and their acceptance by other maritime and coastal actors.
The study should identify in these areas the potential contribution of the action from APC partners
(particularly in terms of strategic planning) and identify priority areas for action.
3.9. Governance Issues
An ambitious strategy should unite the actions of many types of partners:
• Institutional: various levels of local authorities in both regions, public research organizations or
expertise, networks, State
• Industrial: energy suppliers, naval and maritime engineering specialists
• Marine users and coastal fisherman, fish farmers, involved in maritime transport and leisure
• Academics and researchers
• Citizens: Citizens interest associations or collective interest groups, etc.
The study should analyze models of governance capable of supporting the development of MRE, whether
specific MRE models or models successful in other areas which could be transferred to MRE projects
Particular attention will be given to addressing these issues.