Marine Energy Market Trends

Market Driver - Increasing Demand for Renewable Energy Sources

As climate change concerns grow internationally, the focus on cleaner energy has accelerated rapidly in the past decade. Ocean waves and tides are abundant sources of renewable energy with minimal intermittency compared to other renewables. Harnessing these vast ocean resources could play a major role in satisfying rising clean energy needs while mitigating adverse environmental impacts.

Many nations have adopted more ambitious renewable targets in response to the climate crisis. As policymakers under renewable portfolio standards push more aggressive carbon reduction, turning to diverse marine energy solutions will grow in appeal. Complimentary sources from the ocean will be necessary to achieve very high levels of renewable penetration over the coming decades.

Major economies are seeking to meet emissions cuts through expanding adoption of renewables for power generation. Corporations and industrial consumers are also responding to stakeholder pressure for greener operations. This surge in demand signals vibrant opportunities for marine technologies to carve market share catering to buyers’ needs for clean and local renewable options.

Market Driver - Technological Advancements Improving Marine Energy Viability

Technological innovations have been crucial to overcoming past challenges curbing marine energy commercialization. Further technical breakthroughs promise to increasingly strengthen the business case for marine energy going forward. Wave and tidal converters able to operate dependably for longer under harsh sea conditions would reassure investors and attract greater investment interest in marine projects.

On the tidal side, new turbine designs allowing for simpler installation and maintenance in challenging offshore environments have led to better project economics and grid parity coming within reach on favorable sites. Software solutions to optimize energy capture and array performance through real-time adjustments based on changing sea conditions are also helping to raise capacity factors. Such tech progress multiplies marine energy’s productive potential from individual devices up to utility-scale.

As these innovations commercialize and costs fall, bankers will view marine assets as less risky propositions. Lowered risk perceptions can then feedback to spur learning curve effects that accelerate the technology development process for players in the marine energy market.

Market Challenge - Environmental Impact Assessments Causing Delays

The marine energy market faces several challenges in its growth and expansion. One of the major issues is the rigorous environmental impact assessments that marine energy projects are subjected to before being sanctioned. As marine energy technologies involve installing devices in oceans and seas, there are risks of disruption to marine ecology and habitats. Therefore, environmental regulators rightly conduct detailed impact assessment studies to understand the potential impacts.

However, these assessment processes often take a long time, sometimes over 2-3 years for completion. The lengthy assessment periods cause major delays in the commissioning of marine energy projects. This delays the timelines for first power generation and grid connectivity. It further pushes back the revenue generation potential for project developers. The uncertain assessment timelines also add to the project risks and costs.

Overall, the slow assessment procedures pose a big challenge for the bankability of marine energy projects and deter investments in the marine energy market.

Market Opportunity - Synergies with Industries like Aquaculture and Fisheries

The marine energy market presents some attractive opportunities which can be tapped into for growth. One such opportunity lies in exploring synergies with synergistic blue economy industries like aquaculture and fisheries. There are opportunities to leverage existing infrastructure for multiple uses.

For example, marine energy devices could be installed within or around existing fish farms and shellfish production areas. This will help meet local power needs for aquaculture and reduce costs. Similarly, artificial reefs created by marine energy foundations could boost local fisheries by providing new habitats. Such symbiotic relationships with other blue industries can help marine energy projects attract more partners and mainstream faster.

It can also enhance the commercial viability of marine energy through additional revenue streams. Tapping into the synergies will be a promising way for the marine energy sector to find new applications and accelerate penetration in marine energy market.