Paul O'BRIENRenewable Energy Manager

Scottish Development Innovation

www.sdi.co.uk

Developing a marine

energy industry in Scotland:

A tale of two technologies

Thetis May 2015, Nantes

www.sdi.co.uk

Building a supportive environment

• Strategic Environmental Assessment (SEA) –

locational guidance

• The right mix of policy & regulatory environment

– Marine Scotland

• Revenue Incentives - ROCs

• Targeted Capital Grant Support – WATERS and

Wave Energy Scotland

• Gird connected test centre at EMEC

• Commercial Leasing opportunities

• Port Infrastructure

• Supply chain mapping and expert support

The Scottish Government and its and economic development agencies, in consultation with industry, have put a number of elements in place to create the right environment to encourage development and acceleration of the marine energy market in Scotland

www.sdi.co.uk

Policy Context

Renewable Electricity Target:

50% of electricity demand from Renewables by 2015,

100% of electricity demand from Renewables by 2020,

Current Progress:

• 46% of Scottish electricity demand came from renewables in 2013

Other Targets:

• 30% of primary energy will be renewable by 2020

• 80% Carbon Emission reductions by 2050 and 42% by 2020

www.sdi.co.uk

European Marine Energy Centre

Nursery Wave Site

Nursery Tidal Site

Full Scale Tidal Site

Full Scale Wave Site

www.sdi.co.uk

Tidal Energy at EMEC

• 8 tidal devices test at EMEC

– 6 grid connected

– 2 at nursery siteOpen Hydro

Voith Hydro Tidal Current Atlantis Resources

Andritz Hydro Hammerfest

Tidal GenerationScotrenewables

Flumill

www.sdi.co.uk

Array deployment

• Scottish Power Sound of Islay project

– Consented 10MW

– 4 Andritz Hydro Hammerfest turbines

– 4 Alstom TGL turbines

– Deployed 2017

• Nova Innovation

– First community project at Bluemull

Sound in the Shetland Isles

• Atlantis Resources MeyGen project

– Initial array of 4 tidal turbines in 2016

– 4 x 1.5MW turbines

www.sdi.co.uk

Tidal Commercial Leases – Crown Estate

• Crown Estate – leasing process 1.0GW in

tidal leases

– World’s first commercial leasing round

• New Crown Estate Demonstration Leases

– Isle of Islay – Tidal (EMEC)

– Mull of Galloway – Tidal (Siemens MCT)

www.sdi.co.uk

MeyGen Project – Inner Sound

• First phase of the 400MW Crown Estate lease site in the Pentland Firth

• Strong public sector support in the

financial package

• £51.3m total project cost

• £9.7m in equity and £7.5m in debt

financing from Scottish Government's

Renewable Energy Investment Fund

• £10m in debt funding from The

Crown Estate

• £13.3m in grant aid from DECC and

Highlands and Islands Enterprise

www.sdi.co.uk

Pelamis Wave Power

Wello

Penguin

Seatricity

Wave Devices at EMEC

Aquamarine Power

• 5 Wave Devices grid connected at EMEC

– World’s first open water wave device – Pelamis

in 2003 and two more in 2012

– Aquamarine

– Wello

– Seatricity

• Two are going on to test arrays at Wave Hub in

Cornwell

– Wello

– Seatricity

www.sdi.co.uk

Wave Energy Leases

• New Crown Estate

leasing map for Orkney

Waters and the

Pentland Firth

– Leases have been

handed back by

developers

– Others have

changed hands

– Wave projects have

gone from 600MW

down to 250MW

www.sdi.co.uk

Wave Energy Scotland -WES

• WES - New public body run by Highlands

and Islands Enterprise

• Tasked with delivering a step change in the

development of wave energy

• £10m investment this year

• A number of component calls this year with

the first already underway

www.sdi.co.uk

• Up to 100% funding available.

• Competition is open Europe wide.

• Entry can be at different stages of technology maturity:

– Feasibility, Concept Optimisation, Small Scale Prototype, Large Scale Prototype and Research

• Aim to target sectors not currently active in marine energy.

WES Innovation Calls

Feasibility Concept Optimisation

Small Scale Prototype

Large Scale Prototype

Funding period Up to 6months 6-12months 12-24months 12-24months

State aid R&D category

Feasibility Studies Industrial Research Industrial Research Experimental Development

Typical funding limit per project

£50k £500k £2.5M £4M

www.sdi.co.uk

WES Work Programme

PTO Call5 x Feasibility

2015 2016 2017

3 x Concept2 x Small Scale Prototype1 x Large Scale Prototype

WEC Call5 x Feasibility43x Concept2 x Small Scale Prototype1 x Large Scale Prototype

Sub-systems 2

5 x Feasibility3 x Concept2 x Small Scale Prototype1 x Large Scale Prototype

Sub-systems 3

5 x Feasibility3 x Concept2 x Small Scale Prototype1 x Large Scale Prototype

Sub-systems 3

5 x Feasibility3 x Concept2 x Small Scale Prototype1 x Large Scale Prototype

Mar 2015

May 2015

June 2015

July 2015

August 2015

Knowledge Capture

Knowledge Capture 1

Knowledge Capture 2

Research

Research

Research

Research

Research

www.sdi.co.uk

Merci de votre attention

Paul O’Brien

Scottish Development International

paul.obrien@scotent.co.uk