Ocean Power

Ocean power technologies ⁱ represent the smallest share of the renewable energy market, although the global resource is vast. With concerted technology development, dedicated policy support, and growing investment, ocean power has been gradually moving towards commercial-scale deployment. A total of 2 MW of ocean power capacity was installed in 2023, about the same as in 2022. ¹ The estimated operating installed capacity in 2023 was 513 MW. ²

Two tidal range systems account for most of this capacity – the 240 MW La Rance station in France and the 254 MW Sihwa plant in the Republic of Korea. ³ Because suitable locations are limited and large-scale engineering is required, few proposals have been advanced to expand the use of tidal range systems.

Tidal stream and wave power devices are the focus of development efforts. Advancements had long been concentrated in Europe, but generous revenue support policies and ambitious research and development (R&D) programmes in other regions have spurred increased activity, particularly in Canada, the United States and China. ⁴

Tidal stream devices are approaching maturity, and pre-commercial projects are under way. Around 41 MW of tidal stream capacity has been deployed since 2010. ⁵ Developers targeting industrial-scale deployment have converged on horizontal-axis turbines, mounted either on the sea floor or on a floating platform. ⁶ These devices have demonstrated considerable reliability, and total generation surpassed 90 GWh as of the end of 2023. ⁷

Wave power devices are yet to see the same level of design convergence, with a diverse range of operating principles and concepts being developed. Around 27 MW of wave power has been deployed since 2010, with developers generally aiming to tap into utility-scale electricity markets with devices above 100 kW or to fulfil specialised applications with devices below 50 kW. ⁸ The focus of wave power development has long been on building and assessing full-scale prototypes, but in Europe, the sector is now moving towards larger-scale multi-device deployments. ⁹

Ocean Power Industry

Most ocean power deployments are pilot projects, with around 60 active teams testing their devices in the open sea. ¹⁰ A few developers have now advanced to higher technology readiness levels and are pursuing a pipeline of commercial-scale deployments.

A total of eight tidal stream devices were successfully deployed in 2023, with a capacity of 375 kW. ¹¹

In the United Kingdom, Nova Innovation installed two turbines at the Shetland Tidal Array, increasing the project's capacity to 0.6 MW; the original three turbines, deployed in 2016-17, were decommissioned, marking a full life-cycle demonstration. ¹² Magallanes Renovables completed the engineering phase for the second generation of its floating tidal platform and secured tariffs for two significant projects: a 3 MW expansion in Wales and a 1.5 MW project in Scotland through the UK Contract for Difference (CfD) auctions. ¹³ The four 1.5 MW turbines of the MeyGen array in Pentland Firth, Scotland have generated more than 60 GWh of electricity since their installation in 2018, and the next phase of the project aims to add 50 MW of capacity by 2028. ¹⁴ Orbital Marine Power secured a 30 MW project in Orkney, Scotland and received 7.2 MW in CfD allocations for two new projects. ¹⁵

In France, Scottish company Nova Innovation made its first tidal stream deployment outside of the United Kingdom, a 50 kW full-scale device in the Etel Estuary. ¹⁶ French company EEL Energy deployed its turbine in the Rhône River near Lyon, testing an innovative system that uses a plastic membrane that mimics the swimming action of fish. ¹⁷

In the United States, Littoral Power trialled a tidal energy device at the Bourne Tidal Test Site in Massachusetts. ¹⁸ Ocean Renewable Power Company (ORPC) tested a Modular RivGen hydrokinetic device and a TidGen tidal energy converter in Maine, with plans for further deployment, including in the Lower Mississippi River. ¹⁹

In China, the LHD Tidal Current Project marked more than six years of operation, with its Endeavour turbine generating nearly 3 GWh in 20 months. ²⁰ The Zhoushan tidal project (China Three Gorges Corporation) underwent a significant technical upgrade to facilitate grid-connected operations. ²¹

Minesto's tidal energy projects in the Faroe Islands continued to generate electricity in 2023, and preparations were finalised for installing a larger system. ²² The unique Dragon device operates on similar principles to a kite flying in the wind, using the hydrodynamic lift force generated by the underwater current to move a tethered kite that drives a generator. ²³

In Canada, a range of projects advanced, including the 9 MW Uisce Tapa tidal project in Nova Scotia (DP Energy), which plans to use six turbines, and Nova Innovation's 1.5 MW tidal project in Nova Scotia, targeting deployment in 2024. ²⁴ ORPC continued to operate its RivGen Power System (installed in 2022) at the Canadian Hydrokinetic Turbine Test Centre in Manitoba, providing local baseload power to the remote community of Igiugig, Alaska. ²⁵ Canadian company New Energy Corporation expanded its operations to South-East Asia with the delivery of five turbines (25 kW) to Singapore. ²⁶

For wave power, eight additions occurred in 2023, totalling 1.6 MW in capacity. ²⁷ The year marked the highest volume of deployment outside Europe since 2019, with a total of 1 MW. ²⁸

In China, Guangdong Grid Co. and China Southern Power Grid collaborated to develop and deploy the country's inaugural megawatt-class floating wave energy generation device, which has commenced open-sea testing. ²⁹ Characterised by a novel triangular structure, the Nankun has demonstrated robust typhoon resistance. ³⁰ Two 500 kW devices have been deployed as part of the Wanshan wave energy project, expected to enter into operation shortly, and the Penghu platform continued to demonstrate the effective integration of wave power with aquaculture. ³¹

In the United States, Oscilla Power deployed a prototype of its community-scale (100 kW) device in Maine and prepared for connection of its 1 MW utility-scale device off Hawaii, towing it from the harbour to the grid connection point where in-water tests were being conducted. ³² Ocean Power Technologies successfully tested the next generation of its wave energy converter buoy in New Jersey. ³³ The new design allows for the integration of wind and solar energy generation and is fully sealed to eliminate all external moving parts, increasing reliability and lowering maintenance costs.

In the United Kingdom, Mocean's BlueX wave energy prototype operated for 10 months and showcased the integration of solar panels; the company received USD 4 million (GBP 3.2 million) for developing a new 250 kW device. ³⁴ AWS Ocean Energy tested a 16 kW Waveswing wave energy converter at the European Marine Energy Centre (EMEC) in Orkney, Scotland and is seeking partners for a 2 MW prototype. ³⁵ OceanEnergy is also set to demonstrate its 1 MW floating wave energy converter at the EMEC. ³⁶ The device floats on the water's surface and allows waves to flow in, causing a water column within the device to rise and fall, which pressurises air to drive a turbine.

In Portugal, CorPower Ocean successful installed its inaugural commercial-scale wave energy device, C4, in Aguçadora, showcasing durability against storms. ³⁷ The company aims to redeploy the unit in 2024 for performance evaluation and to launch three full-scale devices by 2025. ³⁸

In Spain, Wavepiston completed the installation of a full-scale prototype at the PLOCAN test site in Gran Canaria for power production and desalination, with commissioning planned for early 2024. ³⁹ The Mutriku Wave Power Plant surpassed 3 GWh of energy generated since its commissioning in July 2011, with 266 MWh produced within the year. ⁴⁰ Carnegie Clean Energy and IDOM both secured approvals for deployments at the Biscay Marine Energy Platform (BiMEP) in 2025. ⁴¹ Rotary Wave tested its low-power full-scale device (20 kW) in La Marina de Valencia, producing 30,000 kWh from March to November of 2023. ⁴²

In Canada, Oneka Technologies scaled up its wave-powered desalination technology, securing significant funding and partnerships for deployments in Chile and California, focusing on utility-scale solutions and emergency freshwater supply. ⁴³

The development of other ocean power technologies, such as ocean thermal energy conversion (OTEC), has remained slow, with only a handful of pilot projects launched. ⁴⁴ In 2023, China successfully tested a 20 kW device and finalised construction of a 50 kW device integrated into an experimental test platform. ⁴⁵ Global awareness and expertise around OTEC remain limited, and there is a lack of financial support to move beyond small demonstration plants towards pre-commercial prototypes. ⁴⁶ The scarcity of cost data has hindered understanding of OTEC's economic feasibility for full-scale operations, and a consortium of countries has launched a collaboration to tackle key economic challenges facing the technology. ⁴⁷

Investment

Ocean power is not yet competitive in utility markets due to the need for significant cost reductions and further technological advancements, particularly for wave power. The sector remains highly dependent on public funding to leverage private investment and is yet to receive clear market signals to encourage the final steps towards commercialisation. ⁴⁸ Dedicated revenue support is essential to achieve predictable returns and to attract private investors until the industry reaches greater maturity. ⁴⁹

Public funding for ocean energy deployments in Europe surged to an unprecedented USD 215 million (EUR 195 million) in 2023. ⁵⁰ The European Union's (EU) Horizon Europe project allocated USD 44 million (EUR 40 million) for the development of two new tidal farms, and the EU Innovation Fund provided USD 71 million (EUR 65 million) for the demonstration of two wave energy projects. ⁵¹ The EuropeWave programme, supported by the Scottish and Basque governments and the European Commission, granted USD 14.8 million (EUR 13.4 million) to three wave technology developers for atsea testing by 2025. ⁵²

At the national level, the United Kingdom allocated USD 38 million (GBP 30 million) annually for tidal stream projects over 15 years through its CfD auction, with 11 projects adding 53 MW to the 40 MW already contracted. ⁵³ France provided a financial package – including at least USD 72 million (EUR 65 million) in funding and a feed-in tariff – for the 17.5 MW FloWatt project by HydroQuest. ⁵⁴ It also announced commercial tenders for tidal stream projects as part of its national energy strategy revision. ⁵⁵ In Spain, the Renmarinas Demos Program awarded USD 265 million (EUR 240 million) for testing infrastructure and marine renewable technologies, including USD 13.5 million (EUR 12.2 million) for wave energy demonstration projects. In the United States, the government allocated a record USD 120 million to the Water Power Technology Office's Marine Energy Program, bringing total US R&D funding since 2019 to USD 520 million. ⁵⁶

Private investment in ocean energy saw a significant 75% increase in officially announced deals in 2023. ⁵⁷ Minesto (Sweden) secured USD 11.8 million (EUR 10.7 million) through a rights issue of shares, and Oneka Technologies (Canada) obtained USD 9.6 million (EUR 8.7 million) through an equity round to support its desalination solution development. ⁵⁸ Mocean Energy (Scotland) secured USD 2.9 (EUR 2.6 million) in new equity for advancing its Blue Star technology. ⁵⁹ Havkraft (Norway) raised USD 1.4 million (EUR 1.3 million) through a capital raise campaign, and HydroQuest (France) collected USD 1.6 million (EUR 1.5 million) via a crowdfunding campaign. ⁶⁰ Additionally, Wavepiston (Denmark) secured USD 1.5 million (EUR 1.4 million) from crowdfunding and private investors. ⁶¹

Policy

Diverse policies have been deployed to foster the development of the ocean power sector, including support programmes, streamlined regulations and financial backing for research. Policies aim to foster innovation, mitigate risks and enhance the sector's competitiveness. There is also a focus on establishing test sites, which are critical for innovating and testing new technologies. These efforts are increasingly complemented by marine spatial planning initiatives that seek to balance development and ecosystem conservation. International collaboration and knowledge sharing are crucial for advancing ocean power. ⁶²

Deploying ocean power at scale requires streamlined consenting processes. ⁶³ Uncertainty regarding environmental interactions has often led regulators to require significant data collection and strict environmental impact assessments, which can be costly and threaten the financial viability of projects and developers. ⁶⁴ Current scientific knowledge suggests that the deployment of a single device poses little risk to the marine environment; however, the impacts of multi-device arrays are not well understood. This calls for an adaptive approach that responds to new information over time, supported by more long-term data and greater knowledge sharing across projects. ⁶⁵

In 2023, the International Energy Agency's Ocean Energy Systems programme (IEA-OES) launched an International Vision for Ocean Energy, which provides a roadmap to develop 300 GW of ocean power by 2050. ⁶⁶ The document offers a detailed plan for addressing challenges and opportunities for tidal stream and wave power, emphasising the synergy between R&D and the need for co-ordinated efforts and clear strategies. The key policy recommendations focus on market support, accelerated innovation, infrastructure development (including opportunities for collaboration with the offshore wind sector) and building a robust and efficient regulatory framework.