Posted by: JaredFurtado on Nov 17, 2011

The engineering giant likes the predictability of marine power - which can be "calculated for centuries in advance."

By: Peter Fairley

Marine energy has long looked to be a niche area, capable of meeting just a few percent of global power demand. But this seemingly limited energy source is drawing some big players, the latest being Siemens. The German engineering giant boosted its stake this month in Bristol, U.K.-based tidal energy developer Marine Current Turbines from under 10 percent to 45 percent. The attraction, according to Michael Axmann, chief financial officer for Siemens's solar and hydro division, is the predictability of marine power.

Solar and wind farm operators struggle to predict tomorrow's output, and bad forecasts can wreak havoc with power transmission planning and market prices. In contrast, the gravitational pull of the moon and sun that controls tidal cycles provides a sure means of anticipating the output from tidal generating stations. "Power output of the systems could be calculated for centuries in advance," says Axmann.

The result could be higher revenues. Axmann notes that tidal power is "not subject to volatility. This increases the value of the energy produced, and hence makes the business case more reliable for the investor and operator."

Axmann declined to say how much value would be added by that predictability. But he anticipates that, by 2020, marine turbines will deliver power at a cost that's competitive with today's offshore wind farms—in spite of the challenges involved in engineering for underwater operations.

Click HERE to Read the Full Article



Print
Return