Energy analysts at Frost & Sullivan have released an upbeat forecast for ocean energy over the next decade or so. In a statement released today (10th November) the company said that estimates suggest that if ocean energy technologies continue to be supported, and achieve their predicted potential, approximately 3 gigawatts (GW) of installed capacity could be available in the EU by 2020.

The company pointed to a number of drivers that are contributing to the resurgence in interest in ocean energy; global warming, energy security and rising oil prices have all played a role in the revival of the sector. Ocean energy, says Frost & Sullivan, is a predictable and abundant source of energy with the ability to supply approximately 10% of the world's electricity needs.

"After the loss of interest in the sector following the fall in oil prices in the 70s, marine energy has now been given a new lease of life," notes Frost & Sullivan Research Analyst Gouri Nambudripad. "Countries in Europe that are rich in marine resources, both wave and tidal, such as the United Kingdom, Ireland and Portugal are investing in and supporting this technology."

One of the biggest barriers to the growth of the industry is the competition it is facing from other renewable energy sources that are both mature, such as wind, and growing, such as solar. The renewable energy sector is currently very dependent on support from the government and there is only a limited amount of funding that the government can provide. This situation is dampening the prospects of the European marine energy sector, notes Frost & Sullivan.

"The marine energy sector has a number of technological hurdles to overcome, with the most significant being the ability to survive the harshness of the ocean environment," adds Nambudripad. "While marine energy currently lags behind many other renewable energy technologies, it is, over time, poised to catch up and provide meaningful amounts of electricity."

Promisingly, private investors are showing considerable interest in the sector. These range from private equity and venture capitalists to utilities who are partnering with device developers to assist them in taking their devices from pre-commercial and testing phase to full-scale commercialisation. With steep learning curves, government support and private funding, the sector is set to contribute significantly in the next five to ten years.

The value of worldwide electricity revenues from wave and tidal stream projects could ultimately be between pounds sterling 60bn (euro 77.40bn) and pounds sterling 190bn (euro 245.10bn) per year. The United Kingdom is a clear leader both in terms of activity and in terms of support to the sector. It possesses 50% of Europe's wave energy potential.