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Editor's Letter - Infocus: Wave Energy, July 2008 |
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First published in Infocus: Wave Energy, July 2008. Copyright Cleantech investor Ltd. 2008 Dear Reader,
This is the first Cleantech Investor publication dedicated to the wave energy industry. Infocus: Wave Energy will be published periodically – and is likely to become more frequent as the industry matures. It is set to become a valuable source of information, both for industry professionals and for investors in the wave energy sector.
About 70% of our planet ‘Earth’ is covered by water. Water from rivers has traditionally been used to generate electricity in the form of hydro power. However, the enormous potential to tap the might of the ocean waves is only just beginning to be addressed.
In technology terms, hydro and tidal energy are more advanced than wave energy. However, wave power technologies are approaching commercialisation rapidly.
Backing a new and unproven technology is high risk in investment terms. The winners will be companies which benefit from a combination of factors, of which a good technology is only one: access to finance is also a crucial component in success when taking a new technology to market. As with all Cleantech Investor publications, Infocus: Wave Energy will concentrate on financial and investment matters.
In this issue, Denis Gross reviews some of the different technologies which are emerging. And guest writer Tim Stallard, of the University of Manchester, reviews marine energy standards.
The wave industry is still at the stage where government backing is important. Grant funding is still playing a significant role – and government financing for test sites, in the form of ‘wave parks’ and ‘wave hubs’, is also providing valuable opportunities for companies to test out prototype devices. Infocus: Wave Energy will, in the future, review the incentives being provided by countries and regions to promote investment in wave energy.
Another important consideration to be addressed is the crucial question of how the energy can be transmitted ashore – the ability to transport energy cheaply to the end users is fundamental to the economics of wave power.
We look forward to charting the progress of this emerging industry as it grows to maturity over the coming years.
Anne McIvor
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