Guest blog: Ocean energy is ready for take-off
Ocean Energy Europe’s Policy & Operations Director, Jacopo Moccia, introduces the European Commission’s draft Ocean Energy Strategic Roadmap in his guest blog below.
A good vibe
There was a definite buzz at Ocean Energy Europe’s 2015 conference and exhibition in Dublin in October. Despite the many challenges facing the ocean energy sector, there was a sense of optimism and of getting down to business in the exhibition hall.
Ocean Energy Europe’s data indicates that there has seldom been as much activity in the ocean energy sector as in 2015. The short-term outlook to next year and to 2017 is similarly positive. The ocean energy sector is getting an increasing amount of kit in the water.
Swings and roundabouts
However, let there be no doubt in anyone’s mind that optimism in this sector is underscored with realism. If the feel-good indicator in Dublin was positive, other indicators are sending mixed signals.
The European Commission has opened a window of opportunity; ocean energy is on its radar and funds and finance are being made available. Is this enough? European policies are only as strong as its Member States’ will to support them. Where the EU is pushing for strong national commitments in favour of renewables, many countries are pushing back. Where the EU has increased the amount of its research budget spent on ocean energy, certain countries are cutting back.
The lack of clarity in the UK coupled with public-spending-cuts-in-renewables rhetoric from Westminster is a destabilising message across Europe. After all, the UK is the biggest ocean energy player in the world. In sharp contrast, a number of regional authorities have taken a firm stance in favour of ocean energy. We can cite here Scotland, long-time supporter of ocean energy, but also West Normandy, Pays de la Loire, Wales, the Basque Country and a growing list of others. Indeed, the Committee of the Regions, Europe’s representative body of regional authorities, recently voted in favour of a report urging Europe and its regions to support ocean energy deployment.
Similarly, things are moving in a number of countries. Ireland has come forward with a comprehensive plan to support wave energy from inception to demonstration, showing all the right signals that “Ireland is open for business”. The Belgian federal Secretary of State for the North Sea travelled to Dublin to promote the country’s vibrant marine industry. Belgium wants to join the party and says it has the potential to be la belle du bal.
As the sector develops, getting machines, then arrays into the water becomes increasingly important, but this comes at high cost and a high risk. Are the policy frameworks and financing environments right? Can the support and funds available on the one side compensate for mixed political messaging and cut-backs on the other? Swings and roundabouts are fun children games, but investors are seldom amused by political changes, U-turns and back-tracking.
A roadmap for the industry
To boost the ocean energy sector, the European Commission is facilitating the drafting of a roadmap for the commercialisation of the industry. The large consultation process under the banner of the Ocean Energy Forum, involving over 200 stakeholders, has taken the best part of 2 years. At the Ocean Energy Europe conference and exhibition in Dublin, the first draft of the Roadmap was unveiled to EU Commissioner for Maritime Affairs, Karmenu Vella, Irish Minister for Energy, Alex White and a number of high-ranking officials from regional and national administrations.
The roadmap puts forward six key actions to facilitate development and deployment of ocean energy at each stage of its development, from early R&D and prototypes to industrial roll-out. For the early development phases, a pan-European phase-gate fund is envisaged to stimulate innovation breakthroughs. For the costly and risky demonstration phases, the roadmap comes forward with three actions to design financing models and reduce risks for investors. An action that gathered a lot of support is the creation of a European insurance fund to underwrite demonstration project risk: bridging the gap between what device manufacturers can guarantee and the risk project developers are willing to take.
The Ocean Energy Forum will now work on detailing exactly how each action can be activated. This will require increased involvement from national authorities and the European Commission. The momentum is there and the final rendez-vous set for October 2016. Just under a year to put flesh on the bones.
A smooth take-off?
The ocean energy sector can definitely be the next big thing in renewables. It is poised on the launch pad, its engines are on and the course has been tracked. However, it remains to be seen if we can expect a smooth take-off.
The draft Ocean Energy Strategic Roadmap is available to view online: http://oceanenergy-europe.eu/images/Documents/Ocean_Energy_Forum_Roadmap.pdf
Jacopo Moccia
Policy & Operations Director
Ocean Energy Europe
