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SIMEC Atlantis Energy, a sustainable-energy generation and asset management company, recently achieved a new milestone after exporting over 12 gigawatt hours of clean tidal energy to the grid from their MeyGen Tidal Array in Scotland. 

Why it matters: Demonstrating reliable production is a constant challenge for any company looking to sell energy into the grid with a new technology. SIMEC's 12 gigawatt hours of grid-delivered energy since last spring is one of the best records within the marine energy community and will help bolster investor confidence.

Background: SIMEC's 6-megawatt MeyGen Tidal Array is the largest operational tidal array in the world and comprises four turbines rated at 1.5 megawatts each. This is just the first of several phases, however; next phases could expand the capacity of the array to 92 megawatts, and later to as much as 252 megawatts.

Between the lines: Proving that a given energy technology works at a competitive price point takes time, but is crucial to attract the private investment needed to see the project ramp up to full capacity. It's a classic catch-22: Investors want demonstrated performance before investing, but the companies need capital in order to demonstrate proof of concept over long periods.

The challenge of proving reliability is even more significant for marine energy because of unique environmental factors, such as saltwater corrosion, biofouling (degradation caused by microorganisms), and, in the case of tidal turbines, underwater operation. 

The bottom line: The scale of MeyGen may be modest in comparison to some of the recent offshore wind leases, which operate on the order of gigawatts, rather than megawatts, but it is nevertheless an important project to the marine energy sector that will help prove its viability.

David Hume is a contractor supporting the marine renewable energy portfolio at the U.S. Department of Energy's Water Power Technologies Office and the founder of The Liquid Grid. The views expressed are his own.

Scottish tidal energy generation record could boost sector investment

The MeyGen Tidal Array has exported over 12 gigawatt hours to the grid.

Eyemouth Harbor at sunrise after a tidal storm surge overnight on December 6, 2013 in Eyemouth, Scotland.

Eyemouth Harbor at sunrise after an overnight tidal storm surge on Dec. 6, 2013, in Eyemouth, Scotland. Photo: Mark Runnacles via Getty Images

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<a class="gtmContentClick" data-vars-link-text="SIMEC Atlantis Energy" data-vars-click-url="https://simecatlantis.com/" data-vars-content-id="002b99e7-bb9d-45c8-8332-a499028646ac" data-vars-headline="Scottish tidal energy generation record could boost sector investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://simecatlantis.com/" target="_blank">SIMEC Atlantis Energy</a>, a sustainable-energy generation and asset management company, recently achieved a new milestone after exporting over 12 gigawatt hours of clean tidal energy to the grid from their MeyGen Tidal Array in Scotland. Why it matters: Demonstrating reliable production is a constant challenge for any company looking to sell energy into the grid with a new technology. SIMEC&#x27;s 12 gigawatt hours of grid-delivered energy since last spring is one of the best records within the marine energy community and will help bolster investor confidence.

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

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The U.K. has historically supported the emerging marine-energy industry with  incentives to encourage adoption. The region has some of the best wave and tidal resources in the world and could benefit substantially from the industry once it fully matures.

Yes, but: The government’s support for the industry may be ebbing. After nearly two years of waiting and debate, the U.K. government decided to throw out the £1.3 billion Swansea Tidal Lagoon project, to be developed in Wales, on the grounds that it would not provide sufficient value for the cost. This directly contradicts a government-commissioned independent review that found the project economically viable.

Swansea was going to be the first of many tidal lagoon projects — which generate electricity from controlling the rise and fall of tides through a man-made breakwater — in the region, but it seems unlikely that other projects will go forward now. Advocates argue that the project's true lifecycle costs were not taken into account, since tidal lagoons have an operational life of 120 years, making them more cost-efficient than other generation sources. One of the main sticking points for the project was the subsidy it would require, though in this case it would have been less than one approved for a nearby nuclear power plant.

 The Swansea project scrapping is another in a series of moves leading many marine-energy professionals to believe that the U.K. is losing its appetite to subsidize new technologies and ceding its leadership in the sector. Marine-energy developers may now look elsewhere in Europe to develop their technologies, possibly with stronger government support.

U.K. scraps tidal lagoon project, departing from marine-energy support

Marine-energy developers may now look elsewhere in Europe to develop their technologies.

A rendering of the Swansea Tidal Lagoon project. Image: Tidal Lagoon Power via PA Wire

A rendering of the Swansea Tidal Lagoon project. Image: Tidal Lagoon Power/PA Wire

Renewable energy

The U.K. has historically supported the emerging marine-energy industry with incentives to encourage adoption. The region has some of the best wave and tidal resources in the world and could benefit substantially from the industry once it fully matures.Yes, but: The government’s support for the industry may be ebbing. After nearly two years of waiting and debate, the U.K. government decided <a class="gtmContentClick" data-vars-link-text="to throw out the £1.3 billion Swansea Tidal Lagoon project" data-vars-click-url="https://www.bbc.com/news/uk-wales-south-west-wales-44589083" data-vars-content-id="0f73d39b-fce5-4cbe-b8bf-04728c64d325" data-vars-headline="U.K. scraps tidal lagoon project, departing from marine-energy support" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.bbc.com/news/uk-wales-south-west-wales-44589083" target="_blank">to throw out the £1.3 billion Swansea Tidal Lagoon project</a>, to be developed in Wales, on the grounds that it would not provide sufficient value for the cost. This directly contradicts a government-commissioned <a class="gtmContentClick" data-vars-link-text="independent review" data-vars-click-url="https://hendryreview.files.wordpress.com/2016/08/hendry-review-final-report-english-version.pdf" data-vars-content-id="0f73d39b-fce5-4cbe-b8bf-04728c64d325" data-vars-headline="U.K. scraps tidal lagoon project, departing from marine-energy support" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://hendryreview.files.wordpress.com/2016/08/hendry-review-final-report-english-version.pdf" target="_blank">independent review</a> that found the project economically viable.

The Scottish tidal energy developer Nova Innovation has teamed up with Tesla to demonstrate the world’s first tidal energy storage system (TESS). Tesla is no stranger to the renewable energy market, but this is the company’s first foray into tidal energy.  

Why it matters: While this is a relatively small-scale project for a national grid, it could have big implications for coastal microgrid designs if it proves successful. The integration of technologies that can produce tidal energy with those that can store it  makes a powerful combination, potentially providing consistent and reliable baseload power from a renewable energy source.  

The background: Unlike wind or solar, tidal energy is extremely predictable. The tides are known with strong accuracy years, and even decades, in advance. But like solar and wind, tides are not constant; the speed at which the tides ebb and flow is constantly changing in a sinusoidal pattern, repeated roughly every six hours.

During slack tides, or when there is little to no flow, no energy is being produced or delivered to the grid. If energy from peak ebbs and flows could be stored and then used during the slack periods, the system could provide consistent power. This is exactly what Nova Innovation and Tesla want to demonstrate through this project.

Neither company has commented on the capacity of the storage system, but the three turbines that make up the Shetland Tidal Array have a combined rating of 300 kilowatts (equivalent to about 300 window air conditioning units), so it’s unlikely that there are more than six Tesla Powerpacks (1.3 megawatt hours in total capacity) involved. This pales in comparison to some of the other energy storage projects Tesla announced this past year, such as a 1.1 gigawatt system in California with the Pacific Gas and Electric Company.

What to watch: Tidal energy is an emerging technology in the clean energy sector, so expect to see other energy storage companies looking to pair with tidal developers going forward.

Tesla wades into tidal energy with Scottish developer

The project could have major implications if successful.

The Powerpack system which powered the news conference in seen after Elon Musk, CEO of Tesla unveiled suit of batteries for homes, businesses, and utilities at Tesla Design Studio 

A Powerpack system at Tesla Design Studio in Hawthorne, California. Photo: Kevork Djansezian via Getty Images

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The Scottish tidal energy developer <a class="gtmContentClick" data-vars-link-text="Nova Innovation" data-vars-click-url="https://www.novainnovation.com/" data-vars-content-id="25eca447-60ba-4d41-be5e-0c9b4b960f7b" data-vars-headline="Tesla wades into tidal energy with Scottish developer" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.novainnovation.com/" target="_blank">Nova Innovation</a> has teamed up with <a class="gtmContentClick" data-vars-link-text="Tesla to demonstrate the world’s first tidal energy storage system (TESS)" data-vars-click-url="https://www.novainnovation.com/news/a-world-first-for-nova-innovation-the-holy-grail-of-baseload-tidal-power" data-vars-content-id="25eca447-60ba-4d41-be5e-0c9b4b960f7b" data-vars-headline="Tesla wades into tidal energy with Scottish developer" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.novainnovation.com/news/a-world-first-for-nova-innovation-the-holy-grail-of-baseload-tidal-power" target="_blank">Tesla to demonstrate the world’s first tidal energy storage system (TESS)</a>. Tesla is no stranger to the renewable energy market, but this is the company’s first foray into tidal energy.  Why it matters: While this is a relatively small-scale project for a national grid, it could have big implications for coastal microgrid designs if it proves successful. The integration of technologies that can produce tidal energy with those that can store it makes a powerful combination, potentially providing consistent and reliable baseload power from a renewable energy source.

The French marine energy company Naval Energies announced this past week that it will stop all investment in its tidal energy business. Naval Energies' subsidiaries, OpenHydro Group and its sister organization OpenHydro Technologies, have entered the liquidation process following the decision.

The bottom line: Naval Energies cited slow growth and a closing of the tidal energy market as a reason for their decision. At the time of investment Naval Energies was expecting the tidal energy sector to mature rapidly, anticipating a turnover of €1 billion by 2025. While the industry still has a great deal of potential, most investors simply don’t have the patience or risk appetite for these technologies.

The Ireland-based OpenHydro was developing a unique turbine design to extract energy from the ocean’s tides. Naval Energies (formerly DCNS) became a majority shareholder back in 2013, following a €260 million strategic investment to help the French company expand into the high-growth market of marine renewables.

At the time of the announcement this past week, the two subsidiaries had debts approaching €280 million and required approximately one million euros per week to stay afloat. However, Naval Energies is not completely abandoning offshore renewables — it's still actively pursuing floating offshore wind and ocean thermal energy conversion (OTEC). 

What's next: The announcement comes just a couple of months after OpenHydro unveiled its new factory, capable of producing 25 full-scale tidal turbines each year. One of the facility's turbines was connected to the Canadian grid on July 24, and two days later the European Commission approved a separate seven-turbine tidal demonstration project to be deployed off the Normandy coast. The fate of these two projects is now uncertain.

Large tidal energy developer sinks as industry growth disappoints

Most investors don’t have the patience or risk appetite for tidal energy.

This photo taken on November 27, 2015 in the harbor of Brest, western France, shows a hydroelectric motor at a tidal farm. 

A hydroelectric motor at a tidal energy farm, designed by the DCNS group, in the harbor of Brest, France. Photo: Fred Tanneau/AFP via Getty Images

The French marine energy company Naval Energies announced this past week that it will stop all investment in its tidal energy business. Naval Energies&#x27; subsidiaries, OpenHydro Group and its sister organization OpenHydro Technologies, have entered the liquidation process following the decision.The bottom line: Naval Energies cited slow growth and a closing of the tidal energy market as a reason for their decision. At the time of investment Naval Energies was expecting the tidal energy sector to mature rapidly, anticipating a turnover of €1 billion by 2025. While the industry still has a great deal of potential, most investors simply don’t have the patience or risk appetite for these technologies.

Natural Resources Canada, a federal agency, recently announced C$29.8 million of funding for Halagonia Tidal Energy, a subsidiary of DP Energy, to develop a 9-megawatt tidal array demonstration project — among the largest ever built — off the coast of Nova Scotia.

Why it matters: This funding announcement marks a win for tidal energy, indicating strong confidence in the technology and its potential to meet future energy needs. Internationally, marine energy has been slow to reach widespread commercialization in comparison to other renewable technologies like wind and solar, but demonstration projects such as these reduce the technology's risk and improve investor confidence. 

The details: The project will include five Andritz Hydro 1.5-megawatt turbines and one SR2-2000 floating tidal turbine manufactured by Scotrenewables. Both turbine types have already demonstrated themselves in the water. Three of the Andritz Hydro turbines were deployed at the Meygen Tidal Array in Scotland, one of the first commercial tidal arrays in the world, and has produced over 8.2 gigawatt-hours. Scotrenewables has thoroughly tested a pre-commercial unit that has produced more than 3 gigawatt-hours for the electrical grid in Orkney, Scotland. This next iteration of the Scotrenewables device will be the largest tidal turbine ever constructed with a rating of two megawatts.

What's next: The project will be developed on the Bay of Fundy at the Fundy Ocean Research Center for Energy, a pre-permitted and grid-connected test site that also comes with a 15-year feed-in tariff. The Bay of Fundy is renowned for its extreme tides, in some places exceeding 10 knots, making it an excellent (possibly even too-energetic) site for tidal energy generation.

In Nova Scotia, tidal energy receives $30 million vote of confidence

The 9-megawatt tidal array will be one of the largest ever built.

Couple with dog coming in with tide on the Bay of Fundy shores at Alma New Brunswick. 

Low tide on the Bay of Fundy shores at Alma, New Brunswick, where the Halagonia tidal energy project will be constructed. Photo: Education Images/UIG via Getty Images

Natural Resources Canada, a federal agency, recently announced C$29.8 million of funding for Halagonia Tidal Energy, a subsidiary of DP Energy, to develop a 9-megawatt tidal array demonstration project — among the largest ever built — off the coast of Nova Scotia.Why it matters: This funding announcement marks a win for tidal energy, indicating strong confidence in the technology and its potential to meet future energy needs. Internationally, marine energy has been slow to reach widespread commercialization in comparison to other renewable technologies like wind and solar, but demonstration projects such as these reduce the technology&#x27;s risk and improve investor confidence.

David Hume

Stories

Scottish tidal energy generation record could boost sector investment

Tesla wades into tidal energy with Scottish developer

In Nova Scotia, tidal energy receives $30 million vote of confidence

Large tidal energy developer sinks as industry growth disappoints

U.K. scraps tidal lagoon project, departing from marine-energy support