Wave & tidal power |
No longer a niche technology
There is vast potential for powering global electricity systems with ocean energy, even though current studies are somewhat limited with estimates showing ‘a mere fraction’ of the whole picture. No longer viewed as a niche technology, those countries that move first to progress this renewable resource, are almost being assured of industrial leadership
lower than those of other renewable technologies at the same point in their commercial journey. As deployment increases, costs are projected to continue falling to around US$120/MWh for wave energy and US$140/MWh for tidal stream once 2GW has been deployed. Along with lower financing costs, ocean energy
Wave power has a role to play in the development of hybrid offshore renewables. Wasanajai/
Shutterstock.com
OCEAN ENERGY IS A VAST global resource with the potential to follow a credible pathway to large-scale deployment. And it’s the ability to generate a source of renewable energy at such scale that will enable it to help wind and solar decarbonise power systems across the world. Together, wave power and tidal stream have an estimated generation potential of around 3910TWh per year. This is equivalent to about 13% of present-day global electricity demand and close to the amount generated by hydropower worldwide. Reflecting the sector’s growing potential and maturity, for the first time, the International Renewable Energy Agency (IRENA) recently included a dedicated assessment of ocean energy in its flagship report on the cost of renewable power. And as Ocean Energy Europe explained in its recent global resource assessment, beyond its scale, ocean energy also adds system value. Being governed by the moon and the sun makes tides highly predictable, which means tidal turbines can generate for at least 20 hours per day. And when combined with short-duration battery storage, tidal power can provide round-the-clock renewable generation. Although primarily driven by wind, wave energy can also generate power for several hours after the wind has dropped. Such attributes matter to economic assessments of energy resources, according to IRENA, because the value of generation not only depends on cost but also on timing and predictability. With wave and tidal energy moving towards commercial deployment, they look set to follow the same cost- reduction pathway established renewable technologies have. Like offshore wind before them, wave and tidal now need market visibility to unlock investment, accelerate deployment and reduce costs through scale. IRENA reports that at an equivalent stage of development, today’s wave and tidal costs are already
30 | September 2026 |
www.waterpowermagazine.com
technology is expected to benefit from the same drivers that transformed offshore wind: innovation, industrialisation, larger projects, and economies of scale. And IRENA point to two policies that can significantly speed up the roll-out of ocean energy worldwide. These are: ● Revenue support: Experience with wind and solar suggests that ring fenced mechanisms such as contracts for difference or feed-in tariffs can provide the predictable returns and market visibility that attract private investment.
● Regulatory: Most countries still lack dedicated frameworks, such as standardised permitting, grid- connection procedures and designated deployment zones. This creates uncertainty which can slow projects and raise capital costs. “Market visibility drives investment, deployment and
cost reductions,” says Valentin Dupont, Policy Director at Ocean Energy Europe. “This virtuous cycle brought wind and solar to record levels of deployment. Ocean energy has the same business model and is set to follow a similar cost reduction trajectory with scale. National revenue support schemes are now needed to expand Europe’s pipeline of pre-commercial farms, speed up deployment and industrialise the sector.”
Current data
Known as the voice of the ocean energy industry, Ocean Energy Europe comprises over 120 organisations, including Europe’s leading utilities, industrialists and research institutes involved in this sector. In its Global Resource Assessment published in June 2026, Ocean Energy Europe admitted its findings represent ‘a mere fraction’ of the more accurate picture of total potential. This is because their figures were only based on studies from the 20 countries that have surveyed their ocean energy resources so far. With a substantial share of global ocean energy
remaining unquantified, this means global generation potential will grow as resource assessments expand and improve – particularly across South America, Asia and Africa. Looking at current data, ocean energy has the potential to cover over 50% of electricity demand in half of the surveyed countries. These are: the UK, Ireland, Portugal, Canada, Ecuador, Chile, Indonesia, The Philippines, Australia and New Zealand. Other findings indicate that
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