Development
Limited
The Markets
The potential markets for the Waveberg are large; in the long run, one can envision floating power islands turning wave energy into hydrogen gas for the projected hydrogen economy. In 2008, electrical energy generation produced 3.7 million kWh of energy in the USA; at 4¢ per kWh, the wholesale revenue for the industry was 168 billion USD. 50,000 Wavebergs offshore could generate 1% of this power at an installed cost under 6 billion, for annual revenue of 1.5 billion. Return-on-investment calculations yield almost a 22% annual return based upon overall system costs including maintenance.
The potential markets for the Waveberg are large. The International Energy Agency, the leading world body for energy statistics and projections, envisions the global resource of wave energy at over four times current world electricity production (2MB PDF).
The European Thematic Network on Wave Energy estimated the potential contribution as 2,000 Terawatt-hours/year, or 10% of current electrical production, which would require capital investments of €820 billion. They compare the projected cost of €0.08 per kWh at a discount rate of 8% for wave energy to the average price of €0.04 per kWh and call for financial and market support to reduce that high cost through experience and economies of scale.
The Initial Markets
The first projects will go into the European coast where the ground has already been prepared. Europe is anxious to increase the use of alternative energy and supports early experimental demonstrations of new technologies.
Three European countries have feed-in tariffs for wave energy ranging from €0.22 in Portugal to £0.22 in Scotland. At these prices, Waveberg installations appear to be very profitable, repaying installation costs in two years. The total market for feed-in tariffs is at least 100 MW of generation, yielding $240 million in pre-tax profits, after amortization of 80% of capital costs at 8% interest over 20 years.
Most of the islands in the world, such as Hawaii, Bermuda, Fiji, and Malta, depend on diesel fuel to generate electricity; the fuel costs alone range from a low of $0.15 per kWh for Oahu, with several refineries, to $0.35 per kWh for smaller Pacific Islands. The islands have abundant waves and benign climates, so Waveberg can serve their needs with high reliability and low maintenance. We project at least 1,000 MW of production for these islands within a decade.
In the scenario above, Waveberg Development can achieve over one billion in gross profits annually in the prime markets which pay much higher prices than the mainland grids. Waveberg can grow without overtaxing the company as we engage product developers to take on the burdens of permitting and planning. We plan to have the development team commissioning new factories, one after another, in target markets such as Portugal, UK and the Pacific.
Long-term markets with potential for Waveberg:
NASA photo:
Hawaii and the Pacific
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