Wave Energy SWOT Analysis
Wave Energy SWOT Analysis
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WAVE ENERGY ECONOMIC AND ENVIRONMENTAL ASPECTS STRENGTH (S), WEAKNESS (W),
OPPORTUNITY (O), AND THREATS (T)
ABSTRACT
Ocean wave energy provides sufficient storage as renewable energy with enormous growth
potential. Marine renewable energies present challenges and opportunities that necessitate
a reassessment of marine space and management. This article provides the primary
strengths, weaknesses, opportunities, and threats using a SWOT analysis while considering
economic and environmental factors. Addressing a variety of perspectives and issues makes
SWOT favorable to support in brainstorming sessions. This facilitates an understanding of the
strengths and weaknesses of wave energy resources that ultimately encourages the
development of strategic thinking. Also, enable decision-makers to focus on strengths and
build opportunities while considering the threats and weaknesses.
Keywords: Wave energy, economic and environmental aspects, SWOT analysis, wave energy
converters.
1 INTRODUCTION
The accessibility of renewable technologies that accompany low emissions to generating
electricity has convinced the government to support such technologies financially to become
competitive against nonrenewable alternatives [1-5]. Such a green energy resource requires
minor government investment to fulfill the energy industry to increase economic output and
employment [6-10]. Furthermore, wave energy is more easily assimilated into the grid than
wind and solar energy [11]. From a socio-economic aspect, the closeness of wave energy
areas may enhance fishing activities [12, 13]. Hence, countries no longer depend on
conventional energy sources, leading to energy diversity [8, 14, 15]. Thus, renewable energy
resources such as wind, solar, and wave increase the domestic energy supply [16]. Thus, the
economic path is the most critical perspective for policymakers, particularly investors who
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have to decide how or where to develop and deploy wave energy convectors (WECs)
technologies in deep waters.
Although wave energy generation is vast and more reliable than other renewable
resources, the most major disadvantage of this green energy is its location. Fig.1 represents
that in the northern hemisphere, Scotland and Ireland (Europe), Oregon, British Columbia,
and Alaska (US) are the leader in generating energy from wave energy. In contrast, Chile,
South Africa, Australia, and New Zealand have the highest proportion in the southern
hemisphere.
Figure 1: Annual net wave power generation the worldwide source [17]
Some studies noted a positive relationship between cost reduction and physical conditions
of WECs like device size, mass, and amount of material [18, 19]. In the early ’90s, a
spreadsheet-based capital costing model was developed [20], based on the work initially
carried out by [21]. They defined four major costs for any wave power scheme: device
structure, mechanical and electrical plant, electrical transmission and transportation &
installation. The approach adopted a parametric model that computes capital costs over the
total expected output of the scheme gives the CoE [22, 23]. Recently, the CoE approach has
been reformed by several researchers by applying the discounting rate to obtain a levelized
cost of energy (LCoE).
[30] diagnosed the impact of differing wave energy resources at different geographical
locations, development strategies and uncertainty in resources on LCoE, respectively.
To this end, Stallard, et al. [31] applied nonparametric model, i.e., Data envelopment
analysis (DEA), originally described by Charles et al., 1978. This method provides a
straightforward means of selecting the technology which maximizes electricity generation
with minimum inputs. In contrast to previous cost studies, this approach is independent of
expert estimates regarding cost and variation in market prices. Furthermore, the DEA model
can include additional inputs or output as environmental and macroeconomic effects are
likely to become critical at the industry level. The main drawback of this approach, from an
empirical viewpoint, is eliminating noise from data that means deviations from the efficient
frontier is due to the inefficiency, exclusively [32].
The operational simulation Teillant, et al. [33] has been developed in two phases:
productivity & cost assessment and financial calculator. In the first phase, capital
expenditure (CapEx), operational expenditure (OpEx) and energy productivity will be
quantified, which simultaneously applied as inputs for the second phase returns selected
financial indicators. However, this approach has some limitations: (1) Lack of information
regarding the requirement for manufacturing a WEC, workforce costs are almost ignored. (2)
power calculation denoted by pair of wave Hight (Hs) and wave energy period (Te) can be a
little fallacious for WECs as they are sensitive to the particular sea power spectrum. (3) The
hourly estimation of the device availability and operational costs fails to denote any moment
level alteration.
Recently, reverse engineering is applied to LCoE calculation in the wave energy sector
[34]. This estimation is performed based on a stepwise (6 steps) framework. In contrast with
traditional LCoE, the reversed LCoE is assumed with a predefined value, i.e., £0.15/kWh
[29], unknown costs (CAPEX and OPEX) as historical data is available, and three annual energy
production (AEP) scenarios are defined. Such a framework facilitate identification in the
early stages to diagnose whether their technology has the potential to become economically
lasting in the near future; otherwise, they need innovative breakthroughs to achieve
commercialization to compete with other renewable energies (especially wind power).
However, to assess the feasibility of wave energy, further clarification is required to
investigate the type of material (like steel) used in the construction of the WECs, which
under technical innovations can result in significant cost reduction and boosting in
performance.
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American University of Sharjah, UAE
Some environmental aspects of wave energy have been recognized in several papers [41,
42]. Actual environmental impacts can occur during (the construction, operation, and
decommissioning) stages [43, 44]. Frid, et al. [45] classified environmental concerns for wave
energy into five categories: (1) habitats and species, and ecological changes. (2) direct
effects on reproduction and recruitment, (3) impacts on water column processes and
hydrology, (4) noise emissions (5) electromagnetic fields.
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4 SWOT ANALYSIS
A SWOT study (the abbreviation refers to "Strengths, Weaknesses, Opportunities, and
Threats") has been created utilizing a comprehensive approach to acquire an understanding
of the primary benefits and drawbacks that marine renewable energy (MRE) technologies
possess. Furthermore, the SWOT analysis identifies the major elements that may limit or aid
the growth of the MRE industry [61]. Fig. 2 presents a SWOT analysis of the environmental
impacts of marine or wave energy.
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STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
5 CONCLUSION
Marine energy is a renewable and sustainable form of energy. The two basic kinds of
marine energy are offshore wind and ocean energy (wave, tide, marine currents, and
temperature and salinity gradients). The SWOT analysis may be used to study and assess the
existing state of Renewable Energy Sources, providing a platform for policy recommendations
on utilizing these resources efficiently. This provides an examination of the circumstances in
the marine energy sector in order to gain a comprehensive knowledge of the existing
situation, which can then be used to propose objectives and plans. Thus, private and public
sectors should be aware of this renewable energy potential in the GCC and utilize ocean
energy in its different forms. Moreover, countries by the ocean must prioritize the rapid
transition from nonrenewable fossil fuels to renewable energy sources and establish much
more specific renewable energy objectives in order to reduce foreign dependence, control
environmental problems, have a high-quality environment, have sustainable and stable
economic growth, and have national security.
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