Marine energy first became a renewable energy opportunity in New Zealand five years ago, when the then Labour government set a goal for 90 per cent renewable energy production by 2025 – a goal also endorsed by the current Government, the New Zealand National Party. Of the five existing projects under development in New Zealand, three are undersea tidal turbine arrays and two are surface wave generators.

Supporting this emerging industry is the Aotearoa Wave and Tidal Energy Association (AWATEA), with 57 members including current project developers.

While New Zealand is not short of renewable forms of energy – 73 per cent of all electricity is currently being produced from existing hydro, geothermal, and wind power – the costs are increasing.

The opportunity is to plan ahead for the crossover point where costs of traditional energy production are matched or bettered by the costs of producing other forms of renewable energy including marine, solar, and biomass.

The right conditions for marine project development

Geographically, New Zealand is perfectly placed for marine energy development. It lies in the ‘Roaring Forties’ latitudes, providing ample wind power to create strong wave patterns for surface wave generators. The country also lies between the Pacific Ocean and the Tasman Sea, creating strong tidal pressures around the 15,200 kilometre (km) coastline for underwater turbines.

Four years ago, the Federal Government recognised this potential and set up an $NZ8 million ($6.45 million) Marine Energy Deployment Fund to seed some of the costs of early development over a four-year period.

So far, two of the five companies with projects currently being developed have qualified for this funding. They are:

Wave Energy Technology-New Zealand, which, after extensive trials of small-scale wave generators since 2006, gained a resource consent from Taranaki Regional Council in April 2010 to place a half-scale device 4.3 km offshore from Waitara on the Taranaki coast for what will be a long-term testing program.

Crest Energy Kaipara Limited, which plans to deploy an initial three underwater turbines in the entrance to Kaipara harbour, and is nearing the end of an extended resource consent hearing.

The other three companies are: Neptune Power, the first to receive a Wellington Regional Council resource consent in 2008. The company plans mid-water tethered turbine generators in Cook Strait.

Energy Pacifica, which plans 50 x 1.5 megawatt (MW) turbines under Tory Channel in the Marlborough Sounds. The company is due to apply for its resource consent from Marlborough District Council.

Chatham Islands Marine Energy Limited, which has a resource consent application before Chatham Islands Council for a shoreline wave generator to reduce dependence on the diesel generators currently producing all the power for 700 inhabitants.

In several cases, the projects are dependent on start-up support from the Marine Energy Deployment Fund.

Supporting future development

AWATEA is currently developing a three-year strategic plan to show that continuing government support will be necessary until marine energy becomes sufficiently commercially attractive to stand alone.

That timeframe is estimated to be within the next ten years – which means marine energy could be making a significant contribution to the Government’s goal of 90 per cent renewable energy by 2025.

A commercial start has been made. Todd Energy, one of New Zealand’s foremost oil and gas explorers, has purchased a 30 per cent cornerstone shareholding in Crest Energy, with the option to increase this to 45 per cent.

What will be interesting to watch is how committed the current, and future, governments will be to supporting marine energy development and what support they will offer to potential commercial investors.

Chris Turver is the Executive Officer, Aotearoa Wave and Tidal Energy Association.