Revenue from installation of marine power systems is forecast to have a 56% compound annual growth rate between 2012 and 2018.
The nascent Marine subsegment, which encompasses wave, tidal stream, river hydrokinetic, ocean thermal, and ocean current technologies, had revenue estimated at $300 million in 2011, and this is expected to drop to $140 million in 2012, due to completion of a large marine power project in South Korea. The majority of projects are still in the pilot phase at testing centers based primarily in the United Kingdom. Large corporations, such as Siemens, Rolls-Royce, and Voith Hydro have entered this emerging industry through their own designs or via acquisition of technology companies. A number of 10 MW to 50 MW commercial projects are expected to come online in the next few years, the majority located in Europe. In the United Kingdom, the Crown Estate has successfully leased the rights to approximately 2 GW of marine energy that could be developed by 2020.
Marine power technologies will have to operate in extremely harsh conditions and be competitive with offshore wind in terms of levelized cost of electricity (LCOE). Nonetheless, revenue from installation of marine power systems is forecast to have a 56% compound annual growth rate between 2012 and 2018.
In 2012, the U.S. Federal Energy Regulatory Committee (FERC) issued Verdant Power the first-ever commercial license for its 1 MW tidal stream power project in New York City’s East River. In addition, FERC provided approval of 100-plus preliminary permits to 20 companies to study the feasibility of developing projects around the country. The majority of these permits are for inland river-based hydrokinetic technologies, but permits have also been issued for tidal stream and ocean wave power plants.
gross domestic product
The Marine subsegment contributed $47 million in increased U.S. GDP in 2011.
- Gas Turbines
- Other Distributed Generation
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