Annual Report 2018

Task 7 - Cost of Energy Assessment for Wave, Tidal and OTEC at an international level

In 2018, a new study on the Levelized Cost of Energy (LCOE) for ocean energy devices was initiated, in continuation of a previous one done in 2015.

In 2015, the study identified the need for homogenization of cost and performance (Capex, Opex, capacity factor and availability) data among different developers and countries. The study showed that whilst progress has been made, the rate at which cost reduction and technology deployment have taken place was below expectations in the sector.

In order to monitor the evolution of ocean energy costs and to assess the impact of different drivers on the LCOE, it was proposed a continuation of this task taking into account historical trends, future development and differences among technologies and countries. The objective of this second phase of the study was to provide information on the cost of ocean energy based on the methodology and results of the previous study, identifying different technologies, baseline projects in different countries and, when possible, comparing regions and technologies throughout a transparent methodology. The information received from technology developers and project promoters is expected to provide cost targets for different ocean energy technologies. Moreover, targets per cost component (CAPEX, OPEX and capacity factor) are planned to be proposed out using a reverse LCOE approach. Three main aspects will be considered in the evaluation of the cost of energy:

  1. Use of transparent assumption and methodologies and of accurate data;
  2. Analysis of historical trends and identification of key cost drivers;
  3. Use of models to define future projections.




Phase I:  2015-2016
Phase II: 2018-2019


José Luis Villate, Tecnalia, Spain

All Member countries

The University of Edinburgh, UK
Julia F. Chozas Consulting Engineer, Denmark
RAMBOLL Group A/S, Denmark
Inn2Grid, Spain
Acadia University, Canada

Joint Research Centre of the European Commission


In 2018, a proper questionnaire was developed to collect detailed information from the ocean energy technologies. Real cost and operational data were collected from a number of developers and data collection and analysis was harmonised at national level. Representative baseline projects ware developed allowing for comparison based on local cost differences and resources availability. This process aims at delivering anonymised information for each country while taking into account local resources and costs.

The final outcomes of this work are expected to be published in 2019.