Wave and tidal energy need to take on new approaches in order to demonstrate that grid parity is achievable in the near future at a reasonable cost, according to BVG Associates.
The consultancy said this probably means grid parity with at least 2GW of installed capacity by 2030, requiring a total subsidy investment of £3bn for wave and £4bn for tidal.
It added that lessons can be learned from offshore wind, which has developed effective stakeholder engagement and improved the cost of energy.
But, BVG Associates said, the wave and tidal sectors do not have the luxury of the many decades wind energy has had to get to the stage where its economics are as attractive as its environmental benefits.
BVG Associates associate director Giles Hundleby said: “Current thinking needs to be turned on its head. Instead of looking at savings using today’s devices, we must work back from grid parity at a given market size at a given point in the future to get targets relevant for now – this will drive different decisions.
“Without a fast and robust route to grid parity that investors and governments believe in, these sectors do not have a future.
“So we must work back from grid parity to see what we need to do now to achieve it as quickly as possible.”
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