| Summary: | This case study is based on actual project and consultancy work, balancing real life<br />experience with a review and analysis of empirical and theoretical literature. Tidal stream energy<br />(TSE) is still a nascent technology, but with much better predictability than the classical alternatives<br />of sun and wind. Being still more expensive than other renewable technologies, it is important to<br />find locations in order to initiate a learning process to bring down cost to a competitive level as it<br />was the case for solar and wind technologies. Locations for an initial phase of operation of TSE small<br />islands in the Philippines (and other Asian countries) were found to be most suitable, because<br />expensive and polluting diesel generators can be replaced and a reliable 24 h electricity supply can<br />be established. Different appraisal methods in different scenarios show that under normal<br />circumstances a hybrid combination of TSE, solar energy and battery storage is financially and<br />economically superior to existing fossil energy based power stations as well as to solar energy alone.<br />However, the traditional financial approaches are not always reliable, in spite of superficial<br />mathematical exactness, and the parameters used must be analysed carefully, especially if we deal<br />with innovative technologies with fast changes. In times of global warming we must also include<br />the controversial issue of evaluating damages from greenhouse gases if choosing fossil alternatives.<br />When evaluating and planning renewable technologies, engineering know-how is important, but<br />insufficient. Since financing is a crucial issue for most renewable technologies with high front loaded<br />cost and long amortisation periods, a thorough and trustworthy financial and economic analysis is<br />necessary not only to avoid financial failure later on, but also to attract stakeholders like private<br />investors, banks and government institutions to support a still unknown technology.
|
|---|
