Market Research Reports

Wave and Tidal Energy Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020

139pages
Published Date: 2014-06-30
 

Description


Wave and tidal energy are methods of harnessing energy of oceans for power generation. Countries around the world are increasingly looking to utilize these forms of renewable energy as they provide a constant and steady source of clean energy. Abundance of ocean surface and significant potential of energy generation in nations across the world has led them to pursue ocean energy generation as an important part of their future renewable energy mix. Venture capital funding and government grant schemes are the vital aspects of this sector. Currently, technology development and commercial deployment of projects is at the nascent stage. Wave and Tidal energy might emerge as two of the most promising energy generation technologies in the future. However, for that goal to come into fruition the support mechanisms from national governments and private financers need to remain constant until the technology is mature enough. Like any renewable energy technology newly introduced, the wave and tidal energy sector also suffers from higher costs of installations. Scaling up of manufacturing and experience in large scale project development will go a long way in helping market players make the technology commercially viable rapidly.

This research is designed to estimate, analyze and forecast the market volume and revenue for the wind and tidal power generation market. It provides an in-depth analysis of the market size of wave and tidal power in terms of volume (installed capacity) and revenue (investments in the sector for adding capacity). The report analyzes the wave and tidal energy sector in detail along with deep dive research spanning three regions and eight countries. It provides detailed analysis, historical data and statistically refined forecast for wave and tidal energy plants regionally. Country-wise markets for wave, tidal or both forms of energy have been provided individually, depending upon the investment sentiment in the respective economies. The company market share in the sector for both wave and tidal energy plants has been provided separately for 2013.   

The market size for wave and tidal power generation has been estimated by studying the possible future technology trends in the market. Detailed research of countries and region-specific wave and tidal associations has been undertaken to estimate and forecast the installed capacity and investments in the wave and tidal energy sector. Regionally, the market has been segmented into North America, Europe and Asia Pacific. Owing to a limited penetration of these technologies in the rest of the world, the RoW segment has not been included in this market study. An important aspect of this report is the upcoming project details for both wave and tidal energy. This provides a clear idea of country-wise projects planned and the tentative timeline by which the industry would achieve commercial deployment of its technologies. Tidal Range and Tidal Stream plants have been accounted for together in this study for understanding the overall tidal energy deployment nation wise.
 
Wave and tidal power plant technologies are likely to experience significant changes in terms of individual market share from 2013 to 2020. The technology development is still in the initial phase for both wave and tidal energy. This leaves ample scope for new players to enter the market by introducing new and advanced technologies. Detailed cost breakdown analysis of both wave and tidal energy plants has been provided in the study. Cost projections of individual cost components have been done for the forecast period, supported by qualitative analysis. The major market players in the wave and tidal energy business have been profiled in the market study to identify market penetration strategies and winning imperatives for them. The global wave and tidal power generation market has been segmented as below:

Wave and tidal power generation market: Type analysis
  • Wave energy
  • Tidal analysis
Wave and tidal power generation market: Geography analysis
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Scotland
    • France
    • Others
  • Asia Pacific
    • South Korea
    • Australia
    • China
    • Others

Table of Contents



CHAPTER 1  PREFACE
1.1 REPORT DESCRIPTION
1.2 RESEARCH SCOPE
1.3 MARKET SEGMENTATION
1.4 RESEARCH METHODOLOGY

CHAPTER 2  EXECUTIVE SUMMARY

CHAPTER 3  MARKET OVERVIEW
3.1 INTRODUCTION
3.2 VALUE CHAIN ANALYSIS
3.3 MARKET DRIVERS
      3.3.1 PREDICTABLE AND CONSTANT SOURCE OF RENEWABLE ENERGY
      3.3.2 SCALABILITY WITHIN A SMALL AREA ALLOWING LARGE PROJECT DEVELOPMENT IN PHASES
      3.3.3 GENERATION OF POWER FOR REMOTE LOCATIONS WHERE DRAWING GRID CONNECTIONS ARE NOT COST EFFECTIVE OR FEASIBLE
      3.3.4 STRONG GOVERNMENT POLICY FRAMEWORK AND INCENTIVE SCHEMES
3.4 MARKET RESTRAINTS
      3.4.1 HIGH CAPITAL INVESTMENTS AND LACK OF FUNDING CHANNELS
      3.4.2 LACK OF COMMERCIAL DEPLOYMENT OF PROJECTS DUE TO LOW TECHNOLOGY MATURITY
3.5 MARKET OPPORTUNITIES
      3.5.1 MASSIVE COST REDUCTION OPPORTUNITIES THROUGH TECHNOLOGICAL INNOVATIONS AND CAPACITY UP-SCALING
3.6 PORTER’S FIVE FORCES ANALYSIS
      3.6.1 BARGAINING POWER OF SUPPLIERS
      3.6.2 BARGAINING POWER OF BUYERS
      3.6.3 THREAT FROM NEW ENTRANTS
      3.6.4 DEGREE OF COMPETITION
      3.6.5 THREAT FROM SUBSTITUTES
3.7 WAVE AND TIDAL ENERGY: LIFETIME PLANT COST ANALYSIS
      3.7.1 WAVE ENERGY GENERATION
               3.7.1.1 Global Wave Energy generation cost reduction opportunities, By cost type
               3.7.1.2 Global Wave Energy generation lifetime plant cost breakdown and forecast, by cost type, 2013 – 2020, (Million USD/MW)
      3.7.2 TIDAL ENERGY GENERATION
               3.7.2.1 Global Tidal Energy generation cost reduction opportunities, By cost type
               3.7.2.2 Global Tidal Energy generation lifetime plant cost breakdown and forecast, by cost type, 2013 – 2020, (Million USD/MW)
3.8 WAVE AND TIDAL ENERGY: GLOBAL REGULATORY LANDSCAPE
      3.8.1 U.K & Scotland Wave and Tidal Energy financial incentive schemes
3.9 MARKET ATTRACTIVENESS ANALYSIS OF THE WAVE AND TIDAL ENERGY MARKET, BY REGION, 2013
3.10 COMPANY MARKET SHARE ANALYSIS
      3.10.1 COMPANY MARKET SHARE ANALYSIS : TIDAL ENERGY
                3.10.1.1 Tidal Energy, company market share analysis (MW), 2013
      3.10.2 COMPANY MARKET SHARE ANALYSIS : WAVE ENERGY
                3.10.2.1 Wave Energy, company market share analysis (MW), 2013

CHAPTER 4  WAVE AND TIDAL ENERGY MARKET: TYPE ANALYSIS
4.1 GLOBAL WAVE AND TIDAL ENERGY MARKET: TYPE OVERVIEW
      4.1.1 GLOBAL WAVE AND TIDAL ENERGY MARKET, VOLUME SHARE BY TYPE, 2013-2020
4.2 WAVE POWER PLANTS
      4.2.1 GLOBAL WAVE POWER PLANT CAPACITY ESTIMATES AND FORECASTS, 2014 - 2020 (MW) (USD MILLION)
4.3 TIDAL POWER PLANTS
      4.3.1 GLOBAL TIDAL POWER PLANT CAPACITY ESTIMATES AND FORECASTS, 2014 - 2020 (MW) (USD MILLION)

CHAPTER 5  WAVE AND TIDAL ENERGY MARKET: REGIONAL ANALYSIS
5.1 GLOBAL WAVE AND TIDAL ENERGY MARKET: REGIONAL OVERVIEW
      5.1.1 GLOBAL TIDAL ENERGY MARKET, VOLUME SHARE BY REGION, 2013 AND 2020 (MW)
      5.1.2 GLOBAL WAVE ENERGY MARKET, VOLUME SHARE BY REGION, 2013 AND 2020 (MW)
      5.1.3 GLOBAL WAVE AND TIDAL ENERGY MARKET, VOLUME SHARE BY REGION, 2013 AND 2020 (MW)
5.2 EUROPE
      5.2.1 EUROPE WAVE ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.2.2 EUROPE TIDAL ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.2.3 EUROPE WAVE AND TIDAL ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.2.4 SCOTLAND
               5.2.4.1 Scotland wave energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
               5.2.4.2 Scotland tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
               5.2.4.3 Scotland wave and tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.2.5 UNITED KINGDOM (U.K.)
               5.2.5.1 U.K. wave energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
               5.2.5.2 U.K. tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
               5.2.5.3 U.K. wave and tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.2.6 FRANCE
              5.2.6.1 France tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.2.7 OTHERS
              5.2.7.1 Others wave and tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.2.8 PROPOSED WAVE AND TIDAL POWER PROJECTS: EUROPE
              5.2.8.1 Proposed Wave projects
              5.2.8.2 Proposed Tidal Projects
      5.2.9 REGULATORY FRAMEWORK SNAPSHOT: EUROPE
5.3 ASIA PACIFIC
      5.3.1 ASIA PACIFIC WAVE ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.3.2 ASIA PACIFIC TIDAL ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.3.3 ASIA PACIFIC WAVE AND TIDAL ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.3.4 SOUTH KOREA
               5.3.4.1 South Korea tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.3.5 AUSTRALIA
               5.3.5.1 Australia wave energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.3.6 CHINA
              5.3.6.1 China wave energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
              5.3.6.2 China tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
              5.3.6.3 China wave and tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.3.7 OTHERS
              5.3.7.1 Others wave and tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.3.8 PROPOSED WAVE AND TIDAL POWER PROJECTS: ASIA PACIFIC
              5.3.8.1 Proposed Wave Projects
              5.3.8.2 Proposed Tidal Projects
      5.3.9 REGULATORY FRAMEWORK SNAPSHOT: ASIA PACIFIC
5.4 NORTH AMERICA
      5.4.1 NORTH AMERICA WAVE ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.4.2 NORTH AMERICA TIDAL ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.4.3 NORTH AMERICA WAVE AND TIDAL ENERGY MARKET ESTIMATES AND FORECAST, 2014 – 2020 (MW) (USD MILLION)
      5.4.4 UNITED STATES
              5.4.4.1 U.S. wave energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
              5.4.4.2 U.S. tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
              5.4.4.3 U.S. wave and tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.4.5 CANADA
              5.4.5.1 Canada wave and tidal energy market estimates and forecast, 2014 – 2020 (MW) (USD Million)
      5.4.6 REGULATORY FRAMEWORK SNAPSHOT: NORTH AMERICA

CHAPTER 6  COMPANY PROFILES
6.1 AQUAMARINE POWER LTD.
      6.1.1 COMPANY OVERVIEW
      6.1.2 PRODUCT PORTFOLIO
      6.1.3 BUSINESS STRATEGY
      6.1.4 SWOT ANALYSIS
      6.1.5 RECENT DEVELOPMENTS
6.2 CARNEGIE WAVE ENERGY
      6.2.1 COMPANY OVERVIEW
      6.2.2 PRODUCT PORTFOLIO
      6.2.3 FINANCIAL OVERVIEW
      6.2.4 BUSINESS STRATEGY
      6.2.5 SWOT ANALYSIS
      6.2.6 RECENT DEVELOPMENTS
6.3 MARINE CURRENT TURBINES LTD.
      6.3.1 COMPANY OVERVIEW
      6.3.2 PRODUCT PORTFOLIO
      6.3.3 BUSINESS STRATEGY
      6.3.4 SWOT ANALYSIS
      6.3.5 RECENT DEVELOPMENTS
6.4 OCEAN POWER TECHNOLOGIES INC.
      6.4.1 COMPANY OVERVIEW
      6.4.2 PRODUCT PORTFOLIO
      6.4.3 FINANCIAL OVERVIEW
      6.4.4 BUSINESS STRATEGY
      6.4.5 SWOT ANALYSIS
      6.4.6 RECENT DEVELOPMENTS
6.5 OCEAN RENEWABLE POWER COMPANY LLC
      6.5.1 COMPANY OVERVIEW
      6.5.2 PRODUCT PORTFOLIO
      6.5.3 BUSINESS STRATEGY
      6.5.4 SWOT ANALYSIS
      6.5.5 RECENT DEVELOPMENTS
6.6 TENAX ENERGY
      6.6.1 COMPANY OVERVIEW
      6.6.2 PRODUCT PORTFOLIO
      6.6.3 BUSINESS STRATEGY
      6.6.4 SWOT ANALYSIS
6.7 AQUAGEN TECHNOLOGIES
      6.7.1 COMPANY OVERVIEW
      6.7.2 PRODUCT PORTFOLIO
      6.7.3 FINANCIAL OVERVIEW
      6.7.4 BUSINESS STRATEGY
      6.7.5 SWOT ANALYSIS
      6.7.6 RECENT DEVELOPMENTS
6.8 ATLANTIS RESOURCES LTD.
      6.8.1 COMPANY OVERVIEW
      6.8.2 PRODUCT PORTFOLIO
      6.8.3 FINANCIAL OVERVIEW
      6.8.4 BUSINESS STRATEGY
      6.8.5 SWOT ANALYSIS
6.9 PELAMIS WAVE POWER
      6.9.1 COMPANY OVERVIEW
      6.9.2 PRODUCT PORTFOLIO
      6.9.3 BUSINESS STRATEGY
      6.9.4 SWOT ANALYSIS
6.10 S.D.E ENERGY LTD.
      6.10.1 COMPANY OVERVIEW
      6.10.2 PRODUCT PORTFOLIO
      6.10.3 BUSINESS STRATEGY
      6.10.4 SWOT ANALYSIS

LIST OF FIGURES 

FIG. 1 WAVE AND TIDAL ENERGY: MARKET SEGMENTATION
FIG. 2 GLOBAL WAVE AND TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 3 VALUE CHAIN ANALYSIS OF WAVE AND TIDAL ENERGY
FIG. 4 FIG: PORTER’S FIVE FORCES ANALYSIS
FIG. 5 WAVE ENERGY GENERATION MARKET, INDIVIDUAL COST BREAKDOWN OF LIFETIME PLANT COST, 2013
FIG. 6 TIDAL ENERGY GENERATION MARKET, LIFETIME PLANT COST BREAKDOWN OF OVERALL DEVELOPMENT COST, 2013
FIG. 7 MARKET ATTRACTIVENESS ANALYSIS OF WAVE ENERGY MARKET, BY REGION, 2013
FIG. 8 MARKET ATTRACTIVENESS ANALYSIS OF TIDAL ENERGY MARKET, BY REGION, 2013
FIG. 9 COMPANY MARKET SHARE OF TIDAL ENERGY INDUSTRY (MW), 2013
FIG. 10 COMPANY MARKET SHARE OF WAVE ENERGY INDUSTRY (MW), 2013
FIG. 11 GLOBAL WAVE AND TIDAL ENERGY MARKET, VOLUME SHARE BY TYPE, 2013 - 2020
FIG. 12 GLOBAL WAVE POWER PLANT CAPACITY ESTIMATES AND FORECASTS, 2014 - 2020 (MW) (USD MILLION) 
FIG. 13 GLOBAL TIDAL POWER PLANT CAPACITY ESTIMATES AND FORECASTS, 2014 – 2020 (MW) (USD MILLION) 
FIG. 14 GLOBAL TIDAL ENERGY MARKET, VOLUME SHARE BY REGION, 2013 AND 2020 (MW) 
FIG. 15 GLOBAL WAVE ENERGY MARKET, VOLUME SHARE BY REGION, 2013 AND 2020 (MW) 
FIG. 16 GLOBAL WAVE AND TIDAL ENERGY MARKET, VOLUME SHARE BY REGION, 2013 AND 2020 (MW) 
FIG. 17 EUROPE WAVE ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 18 EUROPE TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 19 EUROPE WAVE AND TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 20 SCOTLAND WAVE ENERGY MARKET CAPACITY AND GENERATION, 2014 – 2020 (MW) (USD MILLION) 
FIG. 21 SCOTLAND TIDAL ENERGY MARKET CAPACITY AND GENERATION, 2014 – 2020 (MW) (USD MILLION) 
FIG. 22 SCOTLAND WAVE AND TIDAL ENERGY MARKET CAPACITY AND GENERATION, 2014 – 2020 (MW) (USD MILLION) 
FIG. 23 U.K. WAVE ENERGY MARKET CAPACITY AND GENERATION, 2014 – 2020 (MW) (USD MILLION) 
FIG. 24 U.K. TIDAL ENERGY MARKET CAPACITY AND GENERATION, 2014 – 2020 (MW) (USD MILLION) 
FIG. 25 U.K. WAVE AND TIDAL ENERGY MARKET CAPACITY AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 26 FRANCE TIDAL ENERGY MARKET CAPACITY AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 27 OTHERS WAVE AND TIDAL ENERGY MARKET CAPACITY AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 28 ASIA PACIFIC WAVE ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 29 ASIA PACIFIC TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 30 ASIA PACIFIC WAVE AND TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 31 SOUTH KOREA TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 32 AUSTRALIA WAVE ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 33 CHINA WAVE ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 34 CHINA TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 35 CHINA WAVE AND TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 36 OTHERS WAVE AND TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 37 NORTH AMERICA WAVE ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 38 NORTH AMERICA TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 39 NORTH AMERICA WAVE AND TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 40 U.S. WAVE ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 41 U.S. TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 42 U.S. WAVE AND TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 
FIG. 43 U.S. WAVE AND TIDAL ENERGY MARKET VOLUME AND REVENUE, 2014 – 2020 (MW) (USD MILLION) 

LIST OF TABLES

TABLE 1 GLOBAL WAVE AND TIDAL ENERGY MARKET: SNAPSHOT
TABLE 2 DRIVERS OF WAVE AND TIDAL ENERGY MARKET: IMPACT ANALYSIS
TABLE 3 RESTRAINTS OF WAVE AND TIDAL ENERGY MARKET: IMPACT ANALYSIS
TABLE 4 GLOBAL WAVE ENERGY GENERATION COST REDUCTION OPPORTUNITIES, BY COST TYPE
TABLE 5 GLOBAL WAVE ENERGY GENERATION LIFETIME PLANT COST BREAKDOWN  AND FORECAST, BY COST TYPE, 2013 - 2020 (MILLION USD/MW) 
TABLE 6 GLOBAL TIDAL ENERGY GENERATION COST REDUCTION OPPORTUNITIES, BY COST TYPE
TABLE 7 GLOBAL TIDAL ENERGY GENERATION LIFETIME PLANT COST BREAKDOWN  AND FORECAST, BY COST TYPE, 2013 - 2020 (MILLION USD/MW) 
TABLE 8 U.K & SCOTLAND WAVE AND TIDAL ENERGY FINANCIAL INCENTIVE SCHEMES, BY SCHEME NAME AND DESCRIPTION

Enquiry Before Buying


Free Market Analysis


When harnessed effectively, oceans could prove to be one of the largest reserves of clean and sustainable energy. Ocean energy can be broadly classified as wave and tidal energy. Under wave and tidal energy, energy is harnessed through the movement of waves and tides, respectively. There are various methods of harnessing the ocean energy; however, currently, wave and tidal are the most dominant forms. Tidal energy can be further segmented into tidal stream and tidal range energy. Tidal range energy is a relatively mature technology, which entails the construction of tidal barrages. Both wave and tidal stream energy are relatively newer concepts. These are in the nascent stages of technology development.

About 200 companies are either partially or fully involved in the development of the wave and tidal energy sector. Most of these are technology developers with their own types of energy converter devices. There is no single dominant technology in the wave or tidal energy sector. Both wave and tidal energy are capable of reaping extensive benefits of economies of scale. Large-scale commercial deployment is imperative for wave and tidal stream power plants to generate electricity at cost-competitive rates. Currently, costs for such power plants are exorbitant. However, major cost reductions are imminent as the industry focus shifts from the prototype testing and project demonstration phase to large-scale array deployment phase. Benefits of economies of scale are likely to occur not only in the manufacture of energy converter devices, but also in power take-off systems and on-shore grid connection infrastructure. Cost sharing of fixed infrastructure by multiple turbines would contribute towards reduction of electricity generation tariffs from these power plants.

The tidal barrage power plant market is in the mature stage of development with high plant operating experience in both France and South Korea. Currently, the largest tidal barrage power plant in the world is located in South Korea. As part of its expansion strategy for generation of renewable energy, the country plans to add nearly 3000 MW of tidal energy generating capacity by 2020. Scotland has emerged as the technology capital of the world for wave and tidal stream energy. The country is the most attractive market for project development due to the presence of a large number of companies coupled with strong governmental financial grant schemes. Europe is likely to lead in terms of capacity installations for wave and tidal stream power plants. However, Asia Pacific is anticipated to account for the highest overall growth in the tidal energy sector, with the construction of large tidal barrage plants in South Korea. Wave energy development in Asia Pacific is estimated to be concentrated in Australia. The wave and tidal energy sector in North America is still struggling as most demonstration projects are stuck in various stages due to inadequate financial grants and governmental sanctions.

Tidal barrage plants self-sustain through the sale of electricity. Both tidal stream and wave energy plants are still not capable of generating electricity at grid parity rates. Development of prototypes and demonstration of pilot scale projects are extremely cost intensive, rendering technology developers highly dependent on financial grants. Currently, the general trend in the industry indicates a retraction of grant and venture capital financing. The market would have to be dependent solely upon private equity or debt financing, for which commercial viability of projects is an absolute necessity. The sector would primarily focus on commercial deployment of these technologies and long-term power sales contracts with utilities during the forecast period. Large-scale patenting of established energy capture technologies is being observed by incumbent technology developers. 

Large original equipment manufacturers (OEMs) are likely to enter the market by acquiring smaller technology developers or forming special purpose project companies. It is uncertain if the industry would face a wave of consolidation in the future. However, with the lack of project developers in general, small-time technology developers would feel an increased need to tie-up with large OEMs to accelerate the process of commercialization of their technologies. Technology developers may shift to technology licensing business as part of their business strategy. This would help them concentrate on making their technologies more robust. It would also enable technology developers to significantly lower working capital requirements and business risks.
 

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