Green Economy in a Blue World-Full Report

Tidal energy While technologies for tidal range are mature, tidal stream energy is not at a stage of broad deployment and is commercially immature when compared to other renewable energies, particularly wind. The table on page 65 shows US$4 500-5 000 per KW investment costs for tidal range with a 40-year gestation period. The high investment cost and long gestation period associated with tidal energy makes it currently less economically feasible when compared to fossil-fuel based energy. However, government and public agency support for initial investment costs can improve the economic feasibility of tidal energy. Wave energy Cost estimates for energy produced by waves are dependent on physical factors, such as system design, wave-energy power, water depth, distance from shore, and ocean floor characteristics. Economic factors, such as assumptions on discount rate, cost reductions from a maturing technology, and tax incentives, are also critical. As a result, themainchallenges for implementing wave power are to reduce the capital costs of construction, to generate electricity at competitive prices, and to withstand extreme conditions at sea. For example, electricity from waves is currently estimated to cost seven times as much as coal-fired power (Bloomberg, 2010). However, in certain remote locations where electricity supplies are expensive wave power is beginning to look competitive (Andrews & Jelley, 2007). This draws on the fact that the transmission and distribution cost of grid- based electricity in certain places can be higher, in locations that are farther from electricity generation centres, when compared to wave- power based electricity. Algae-based biofuels Algae-based biofuel development is still in its nascent phase. Despite some projections on the cost-effectiveness and imminent production volumes of algal-based biofuels, there are no commercial-scale examples of algae biofuel production (FAO, 2009). Some of the identified reasons for economic non-viability of algae biofuels are: high capital costs; biomass output is still under development (but has high potential); and the value of co-products is currently too low to achieve commercial feasibility. In addition, knowledge gaps exist for algae- based biofuels due to several critical factors. For instance, due to a lack of industrial-scale experiments, there is insufficient knowledge

to adequately judge the economic viability; productivity data is often extrapolated from small experiments andoverall analyses of energy balances, GHG balances and CO 2 abatement potential are lacking (FAO, 2009). However, co-production of food and/or fuel has the potential to increase economic viability and can build on existing experience, with high potential in fish farming (FAO, 2009). 2.3.1 Employment benefits Marine based renewable energy creates new and high return employment opportunities, due to the labour-intensive nature of production. This section here will illustrate the additional or increased employment benefits of marine based renewable energies, drawing on specific technology examples. Compared with thermal power generation, renewable energy has a higher labour intensity and therefore acceleration in the deployment in the marine-based renewable energy sector could provide additional employment opportunities (UNEP, 2011). Lack of skilled labour is also one of the potential barriers to deployment of renewable energy (UNEP, 2011). The types and scale of opportunities will vary by national context and energy source. Marine-based renewable energy also presents a particularly relevant alternative for maritime communities who were formerly reliant on fisheries or offshore oil and gas production. In addition, energy installations can become tourist attractions in their own right, indirectly creating associated tourism and services jobs, as seen at La Rance tidal barrage in France (IPCC, 2011). Windenergy for exampleprovidesbothdirect and indirect employment in the areas of wind turbine manufacturing, R&D, marketing, engineering and specialized wind-energy services. The total estimated direct and indirect jobs in Europe in 2009 are approximately 154 000 jobs. These jobs range from wind-energy manufacturers, developers, engineers, project managers, legal experts, environmental engineers, consultants, financial managers, insurers, R&D experts, constructors, etc. In terms of gender, a survey conducted by EuropeanWind Energy Association shows that men make up 78 per cent of the workforce, due to the traditional predominance of men in production chains, construction work and engineering (EWEA, 2009). Similarly, tidal energy is labour-intensive. For example, the envisaged Severn Barrage tidal 2.3 Social issues and opportunities

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