Deriving Current Cost Requirements from Future Targets: Case Studies for Emerging Offshore Renewable Energy Technologies

Shona Pennock, Anna Garcia-Teruel, Donald R. Noble, Owain Roberts, Adrian de Andres, Charlotte Cochrane and Henry Jeffrey
Additional contact information
Shona Pennock: School of Engineering, Institute for Energy Systems, University of Edinburgh, Edinburgh EH9 3DW, UK
Anna Garcia-Teruel: School of Engineering, Institute for Energy Systems, University of Edinburgh, Edinburgh EH9 3DW, UK
Donald R. Noble: School of Engineering, Institute for Energy Systems, University of Edinburgh, Edinburgh EH9 3DW, UK
Owain Roberts: School of Engineering, Institute for Energy Systems, University of Edinburgh, Edinburgh EH9 3DW, UK
Adrian de Andres: School of Engineering, Institute for Energy Systems, University of Edinburgh, Edinburgh EH9 3DW, UK
Charlotte Cochrane: School of Engineering, Institute for Energy Systems, University of Edinburgh, Edinburgh EH9 3DW, UK
Henry Jeffrey: School of Engineering, Institute for Energy Systems, University of Edinburgh, Edinburgh EH9 3DW, UK

Energies, 2022, vol. 15, issue 5, 1-19

Abstract: This work investigates potential cost reduction trajectories of three emerging offshore renewable energy technologies (floating offshore wind, tidal stream, and wave) with respect to meeting ambitious cost targets set out in the Strategic Energy Technology Implementation Plans (SET-Plans) for Offshore Wind and Ocean Energy. A methodology is presented which calculates target costs for current early-stage devices, starting from the 2030 SET-Plan levelised cost targets. Component-based experience curves have been applied as part of the methodology, characterised through the comparative maturity level of each technology-specific cost centre. The resultant early-stage target costs are then compared with actual costs for current devices to highlight where further cost reduction is still required. It has been found that innovation and development requirements to reach these targets vary greatly between different technologies, based on their current level of technological maturity. Future funding calls and programmes should be designed with these variables in mind to support innovative developments in offshore renewables. The method presented in this paper has been applied to publicly available cost data for emerging renewable technologies and is fully adaptable to calculate the innovation requirements for specific early-stage renewable energy devices.

Keywords: LCOE; cost target; cost reduction; ocean energy; innovation requirements; offshore renewables; wave energy; tidal stream; floating offshore wind (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/1996-1073/15/5/1732/pdf (application/pdf)
https://www.mdpi.com/1996-1073/15/5/1732/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:15:y:2022:i:5:p:1732-:d:758741

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().