Accelerating the Deployment of Offshore Renewable Energy Technologies - Project Proposal - Michael Paunescu Renewable and Electrical Energy Division Natural Resources Canada 6th ExCo RETD Ottawa, October 16, 2007

What we know Globally, offshore renewable energy is an emerging industry. Potential to grow rapidly in a number of countries. Offshore wind energy, tidal power and wave energy are at different stages of technology development and deployment Different approaches may be required for their successful deployment. Yet, offshore RETs face common barriers and issues in their way to market competitiveness. Globally, offshore renewable energy is an emerging, but burgeoning industry. While tidal and wave energy is at an earlier stage of development with technology demonstrations being pursued in many locations in Europe and North America, the offshore wind industry is already considered mature. Offshore renewable energy, i.e. wind, wave and tidal energy, has the potential to grow rapidly in a number of countries, including Canada, the USA, Denmark, China, Finland, Italy, Germany, Norway, Republic of Korea, and Spain, to name only a few. Regardless of their deployment stage, offshore RETs face common barriers and issues in their way to market competitiveness.

Some issues have been identified… Fragmented development Uncertainties and serious delays caused by: Lack of appropriate regulations Allocation and security of tenure rights Limited government support Limited project development experience Complex environmental assessment procedures Up until now, the development of offshore wind energy proceeded in parallel in a number of countries, with practices in each country reflecting largely its own context and early experiences. Uncertainties and serious delays have been experienced in the development of offshore wind energy projects, primarily due to: the lack of appropriate regulations, including allocation and security of tenure rights, limited governmental support, lack of project development experience, as well as complex and lengthy strategic environmental assessment procedures. Tidal power and wave energy are at the pre-commercial stage and as such there is no technology winner yet, in contrast to wind where the technology is a mature one.

How can we address these issues? “Accelerating the deployment of offshore renewable energy technologies” Objective: To provide an overview and analysis of best practice and experience with the deployment of offshore renewable energy technologies. A new project titled “Accelerating the deployment of offshore renewable energy technologies” could provide the critical information and knowledge necessary to speed up the deployment of offshore RETs.

Project assumption International collaboration in identifying and documenting the common drivers, barriers and issues facing the deployment of offshore renewable energy technologies could: accelerate offshore wind energy take up, and help ocean energy reach the stage of commercial deployment sooner. Continuous and improved international collaboration and dialogue could help policy makers in designing and implementing effective policies, and approving the most appropriate programs and measures. Includes collaboration with the IEA’s Implementing Agreements on Ocean Energy and on Wind energy, Task 23 on Offshore wind energy.

Approach: Offshore Framework… Regulatory policies Project economics and financing International collaboration Environmental impacts Technology development and demonstration To accelerate the deployment of offshore renewable energy technologies, there is a need for increased international collaboration through a common framework that would: Advance technology development and demonstration, both in shallow and deep water; Help understand and mitigate environmental impacts on marine ecosystems; Develop guidelines for regulation policies, including the allocation of rights for sea floor; Improve the understanding of economic and financial viability of offshore projects; Develop technical, environmental, and economic guidelines for increased international collaboration and improved national coordination of offshore energy deployment policies and programs.

…of which, this project will focus on: Regulatory policies Project economics and financing International collaboration Out of this five-point common framework, this project shall focus on: (1) Developing guidelines for regulatory policies; (2) Improving the understanding of economic and financial issues of offshore renewable energy technologies, and (3) Developing technical, economic and environmental guidelines for improved international collaboration on the deployment of offshore renewable energy technologies. The project shall also avoid duplication with ongoing activities under the other IEA implementing Agreements.

Expected Results Improved understanding of economic and financing issues: Overview of best practice and evidence-based analyses Recommendations for regulation and public policies: allocation of rights and access to seabed floor environmental, health and safety concerns. Guidelines for continuing international collaboration (economic and regulatory) An overview of world-leading countries experiences and best practice as a way to provide sound background information on the deployment of offshore wind, wave and tidal energy technologies; Best practice and lessons learned from world leading countries with respect to the allocation of rights and access to seabed floor, as well as environmental, health and safety concerns; and Lessons learned of how to avoid the most common barriers and issues in offshore energy project development and overcome the regulatory and economic challenges facing the deployment of offshore renewable energy technologies. Guidelines on the regulatory and economic challenges facing the deployment of offshore renewable energy technologies.

Full report including: Deliverables Full report including: Offshore renewable energy policy framework Evidence-based analyses and documented best practice Regulatory guidelines Project development guidelines (economics and financing) Slide-show presentation Communication Plan This project will provide added value and can benefit from the work being undertaken by: Task 23, Offshore Wind Energy Technology Development, of IEA’s Implementing Agreement for Co-operation in the Research, Development and Deployment of Wind Energy Systems, and IEA’s Implementing Agreement on Ocean Energy Systems. It will also draw on the IEA’s recent review of offshore wind experiences, and various studies being undertaken by IEA’s countries members.

Total Budget: €140,000, including Proposed Budget Total Budget: €140,000, including Approximately 130 person days: €130,000 Travel expenses: €10,000 (ExCo 8 and relevant workshops)

Time line October 2007 – approval at ExCo 6 October – November 2007: refine project, launch call for tenders December 2007 – approve Implementing Body, Steering Group; project launch December 2008 – project completion