Catching the Wave: Renewed Momentum for Wave Energy Technology

The global push for net zero emissions has driven unprecedented growth in renewable energy technologies. Yet, despite this progress, the world is significantly off track to meet the scale required to limit global warming. Recent developments highlight that wave energy, often overlooked in favor of solar and wind, is re-emerging as a promising solution. Here's why.

Unleashing Wave Energy’s Potential

Wave energy, a dense and predictable renewable energy source, has long been seen as a complement to more intermittent renewables like solar and wind. According to the UN and International Renewable Energy Agency (IRENA), wave and tidal energy have the potential to supply around more than one third of the world’s electricity needs, or over 29,000 TWh annually, by 2050. Closer to home, a 2022 report from Energi21 estimates that developing just 20% of Norway’s wave energy potential could produce 12–30 TWh annually. For comparison, Norway’s total annual electricity production is approximately 158 TWh. Despite this promise, challenges in cost, reliability, and survivability have hindered large-scale commercialization—until now.

1. Market Signals: A Growing Momentum

Recent developments indicate a renewed interest in ocean energy:

• Policy Support: The UK’s recent Contracts for Difference (CfD) round awarded funding to six tidal stream projects, signaling growing confidence in marine renewables as a whole.

• Innovation Recognition: Swedish company CorPower Ocean was named to Cleantech Group’s Global Cleantech 100, highlighting increased recognition of promising wave energy technologies.

• Technology Testing: Across Europe, dedicated marine energy test centers are fostering development. In France, Brittany’s SEENEOH test site enables validation of tidal and wave technologies under real-world conditions, while the SEM-REV site supports larger-scale wave energy testing. In Norway, the LoVe marine energy initiative in Lofoten and Vesterålen exemplifies regional efforts to explore marine energy's potential through structured testing and collaboration.

2. Filling the Renewable Energy Gap

Global deployment of onshore wind is falling short of required targets due to challenges like public opposition and space constraints. Similarly, while floating offshore wind holds promise, its high costs in early-stage deployment make it a challenging option for rapid scaling. Wave energy can help bridge this gap by:

• High Energy Density: Waves are energy-dense, enabling significant power generation in compact areas.

• Synergy with Offshore Wind: Wave energy converters can be co-located with wind farms, sharing infrastructure like subsea cables and substations. This reduces costs while stabilizing energy output through complementary generation profiles.

  
  

3. Addressing Historical Challenges

Innovations in wave energy design are tackling long-standing issues:

• Survivability: New technologies integrate storm mitigation measures into their designs. For example, Hurricane Innovation’s system leverages strategies like lowering floaters to minimize storm impacts, addressing survivability issues that have plagued wave energy for decades.

• Cost-Competitiveness: Some wave energy technologies are now targeting Levelized Costs of Energy (LCOE) as low as 50 USD/MWh or below. This is significantly lower than the global average for bottom-fixed offshore wind, estimated by IRENA at around 80 USD/MWh, and Norway-specific estimates of ca. 80–125 USD/MWh provided by NVE. With these improved economics, wave energy could become a highly competitive option in the renewable energy mix.

  
  

4. A Renewed Role in the Energy Transition

Wave energy's potential goes beyond its historical promise as a new renewable resource—it aligns with the strategic needs of offshore energy expansion.

• Optimized Offshore Utilization: At a recent conference SINTEF highlighted how wave energy can complement offshore wind by reducing the spatial footprint of energy projects. Integrating wave energy into offshore wind farms maximizes energy output per square kilometer, making better use of valuable marine areas.

• Power Stability: Wave energy offers stable production profiles, complementing wind energy’s variability. By smoothing grid supply during low-wind periods, wave energy reduces the need for costly grid balancing measures and enhances overall energy system reliability.

• Leveraging Norway’s Expertise: Norway's world-class offshore supply chain and engineering capabilities are well-suited for developing wave energy technologies. This alignment of resources creates an opportunity to expand Norway's renewable energy portfolio while tapping into existing industrial strengths.

These factors position wave energy as an essential part of the renewable energy transition, providing both technological and strategic benefits for a decarbonized future.

The Way Forward

With advancements in cost reductions, reliability, and integration potential, it is on the brink of becoming a key player in global renewable energy production. As emerging technologies gain validation at leading test centers, and companies like Hurricane Innovation scale their solutions, wave energy could soon make the leap to commercial viability.

At Respire, we’re proud to support this evolution, working with innovative portfolio companies to accelerate wave energy’s transition from promise to mainstream adoption.