European ocean energy market study hot off the press

first_imgDG MARE, a body responsible for the EU Commission’s policies on maritime affairs and fisheries, has published an ocean energy market study which outlines the financial needs of the ocean energy sector in the EU.The scope of the study, co-authored by WavEC Offshore Renewables and Italian business management consultants COGEA, was to estimate the financial needs of the ocean energy sector in the EU, identify potential financing gaps and possible financing solutions, and to analyse recommendations of the ocean energy roadmap in that context.Three scenarios have been developed –  analyzing situations where all projects in the pipeline are deployed and start at the proposed date, over those where projects are deployed, but some are delayed, to the final ‘plot’ where projects are delayed or cancelled.In an ‘optimistic’ scenario, and given the current level of political support – about 3.9GW of cumulative installed capacity are expected globally until 2030. The capacity falls to 2.8GW in a second scenario, and to just above 1.3GW in a ‘pessimistic’ scenario, according to the report.OpenHydro tidal turbine installation at EMEC test site (Photo: Mike Brookes Roper/EMEC)The study has also found that most of the financial resources injected in the sector come from private equity – with over 75% coming from private finance to reach over €6 billion invested to the sector so far on a global scale.Excluding tidal range, the report notes that the investments for the sector could amount to €9.4 billion in Europe until 2030, according to the optimistic prognosis, whereas the ‘worst-case scenario’ out of the three predicts €2.8 billion, tops.There is also the case where the ocean sector could garner €7 billion, it is affirmed in the report.The study has confirmed that there are several funding instruments at national and EU level for prototypes and demonstration projects.What is lacking, the report states, is a critical mass of finance to further develop the sector and scale it up to a fully commercial dimension.“Ocean energy projects are usually too capital-intensive for venture capitalists and too risky for private equity. By the same token, borrowing from banks is often too costly. As a result, private investment in the ocean energy sector often involves own financing. While on the one hand this shows a certain dynamicity and optimism in the sector, on the other it seriously limits the overall availability of resources,” the report reads.By using public money to leverage private capital, the funds proposed in the Ocean Energy Roadmap might accompany the industry until it reaches the desired level of maturity – however – the funds alone will most likely not be sufficient to reach the tipping point after which the sector can stand on its own feet, without strong and stable public support, according to the report.“The injection of public money via the funds will certainly lower the level of risk for private investors, but these will continue seeking investments based on projected returns. Hence, a form of revenue support is of paramount importance to accompany the funds and maximize their effectiveness.“It is thus highly recommended to take action towards the implementation of revenue support mechanisms, as much as possible consistent across Member States, so as to create certainty. Besides legislative and financial support, forward looking and determination are key,” the report advises.Revenue support essential, industry body agreesResponding to the report, Rémi Gruet – the CEO of the Brussels-based industry body for Europe’s ocean renewable energy Ocean Energy Europe – said:Rémi Gruet (Photo: Ocean Energy Europe)“This study puts figures on how great an economic opportunity ocean energy represents for Europe – €2.6 billion already invested in the EU with 75% coming from private companies; 3.9GW of projects by 2030, representing €9.4 billion of investments – just to name a few.“Crucially, those figures are calculated.”Commenting on the current level of political support in the EU, Gruet remarked: “The EU has been a great supporter of ocean energy in the last years, politically and financially.“Yet revenue support is essential for any emerging energy technology to make it to market.“It is now up to France and the UK to give the right signals to investors so that this opportunity can materialize in those countries and in Europe.”last_img read more

EPL: Man City too strong for Leicester

first_imgRelatedPosts EPL: Foxes attack Burnley EPL: Gunners survive West Ham scare EPL: Gunners gun for West Ham scalp Manchester City produced perhaps their best Premier League performance of the season to move within a point of second-placed Leicester with a 3-1 win over the Foxes at the Etihad. Goals from Riyad Mahrez, Ilkay Gundogan and Gabriel Jesus secured an important win for Pep Guardiola’s side, after Jamie Vardy’s counter-attacking goal had given the visitors the lead against the run of play. Without his number two, Mikel Arteta, after he became Arsenal’s new head coach on Friday, Guardiola made two changes to the side that had beaten Gunners in their previous league outing, with Bernardo Silva and Mahrez preferred to Phil Foden and Rodri in an attacking lineup. Brendan Rodgers, meanwhile, stuck by the bulk of the side that had seen their winning league run come to an end against Norwich last weekend, with the inclusions of Ayoze Perez and Harvey Barnes the only changes. City had the better of the opening exchanges, with Mahrez and Kevin De Bruyne particularly menacing in tandem, the latter tormenting his former side by cutting in from the right and the Belgian striking the base of the post on 14 minutes. But despite an impressive attacking start, City’s vulnerabilities on the break remained, and on 23 minutes they were ruthlessly exploited as Barnes curved a wonderful ball in behind for Vardy to race away from Fernandinho and lift cutely over Ederson. If that goal was undeserved, then a second would have been a travesty, but Vardy almost provided it, again cruising beyond a City defender – this time Nicolas Otamendi – but failing in his attempt to beat Ederson at his near post after the Brazilian this time opted to stay on his line. On the half-hour-mark, City did find their leveller, albeit with a huge stroke of fortune, as Mahrez’s low strike took a sizeable deflection off Caglar Soyuncu to take it beyond Kasper Schmeichel. And by half-time, they had the lead that their superiority merited as Ricardo Pereira’s ridiculous lunge brought down Raheem Sterling, allowing Ilkay Gundogan to stroke home from the spot. Mahrez came close to getting his second shortly after the break, guiding just wide with wonderful technique on the half-volley, but Leicester really should have equalised at the other end as Vardy swept across the face for Barnes, but the midfielder failed to apply the finishing touch from close range. And City’s dominance was finally converted into a two-goal cushion midway through the half when the outstanding De Bruyne romped past Soyuncu and squared for Jesus to tap home and score his first Etihad goal of the season.Tags: Gabriel JesusJamie VardyLeicester CityLeicester DityMikel ArtetaRiyad Mahrezlast_img read more