Rémi Gruet, CEO of Ocean Energy Europe, explores opportunities, challenges and futures in the European marine energy sector.
Europe is at the forefront of Onean Energy, a promising new renewable energy frontier. Wave and tide energy is emerging as a key component of Europe’s clean energy future, as it can generate 100 gigawatts of capacity and create hundreds of thousands of jobs. Unlike wind and solar, ocean energy provides consistent and predictable electricity and is a valuable asset in the transition to a stable, carbon-free power grid.
But despite that promise, the sector faces challenges, from securing investments to navigating complex permitting processes. While European funding provides important early stage support, expanding marine energy to fully commercially deploy it requires stronger commitments from both policymakers and private investors. Meanwhile, competition between the US and China is intensifying, putting pressure on Europe to act quickly if they want to maintain leadership in this sector.
To explore the opportunities, challenges and future prospects of marine energy in Europe, we talk to Remi Gruet, CEO of Marine Energy Europe. With years of experience defending the sector, Gruet will industrialize marine energy, attract investment and provide valuable insight into what Europe needs to remain at the forefront of this transformational industry.
What are the most important opportunities and challenges facing the European marine energy sector today?
The most important opportunity lies in the creation and industrialization of new economic sectors based on ocean energy, primarily wave and tidal energy. This is a sector developed in Europe, with 100% European content on currently deployed devices. Expanding this sector could lead to 100 gigawatt capacity and create around 400,000 jobs in the EU economy, including export opportunities.
The industry can provide 10% of the EU’s electricity through renewable sources that complement wind and solar, as it generates electricity at different times. This makes ocean energy a valuable addition to the European energy grid, providing great economic opportunities for member countries.
When it comes to challenges, ensuring the necessary funding remains the biggest hurdle. As an innovative sector, financial support is needed to reach commercialization. Currently, there is strong funding at the European level, but ongoing support is needed to attract private investors, especially at the member state level. Ultimately, public funds alone cannot sustain this sector. It requires private investment to scale successfully.
You said that ocean energy complements other renewable sources like the wind and the sun. How do they compare in terms of cost, efficiency and scalability?
Currently, ocean energy is more affordable at a deployment level than wind and solar are at comparable stages. This is because lessons learned from offshore winds can be integrated and entered the pre-industrial stage at a low cost. Today, marine energy technology has similar cost levels to floating wind projects.
Like offshore wind power, marine energy technology relies on materials such as steel, cement, epoxy resins for blades, and electrical equipment. The main difference is that medium turbines use air and tide and wave devices operate with water. The energy of the tide in particular is very similar to wind technology. The energy of the waves is slightly different, but shares similar scalability.
A large number of marine energy equipment is required to produce the same power output as a coal plant. However, this is beneficial for cost reductions, as mass production allows for standardization, automation and economies of scale. This makes cost savings easier compared to fossil fuel plants and nuclear power.
Ocean Energy Europe has recently announced 15 projects over the next five years. How do you think this will promote industrialization in this sector?
These projects mark the beginning of true industrialization. I have never seen such a high level of development before. To be clear, these are publicly funded projects and meant that they received a stamp of financial support and approval. Many have already attracted private investment, increasing the chances of success.
With a capacity of 165 megawatts and about 140 machines, the initiative is the start of a production expansion. This allows standardization of components such as turbine blades for tidals, helping manufacturers improve their production techniques.
When deployed, these projects will generate valuable power and data and help guide future development. This transition from research and development to industrialization and commercialization is critical to the success of the sector.
What barriers should we overcome to move from a pilot project to a full-scale commercialization?
Funding remains a major barrier. Innovative technologies are inherently expensive in the early stages. Development and deployment of prototypes cost between 5 million and 20 million euros per unit, which requires a significant investment. The power sector is not capable of introducing new products every day.
Public funding has played an important role in supporting the wind and solar industries in the early days, but the same is necessary for marine energy. Member States can help by providing revenue support systems that bridge the gap between early stage costs and market competitiveness. Proven successful initial deployment reduces costs and reduces dependence on subsidies.
Like today’s wind and solar energy, there are barriers associated with permits and consent, especially in many European member states where these processes take an excessively long time. Investors are unlikely to commit to projects with a 10-year return on investment, so these delays need to be addressed.
Investors are looking for returns within three years. Permission process (excludes environmental permits, but requires a five-year procedural approval in a member state, it becomes attractive. During that time, investors were able to re-allocate funds twice elsewhere. Streamlining the timeline of these approvals is important to accelerate project implementation and to promote sector growth.
What role should government policies and funding play in accelerating sector development?
The government must take the lead by implementing policies that accelerate permits and consent, funding the first commercial project, 10, 50 and ultimately 200 megawatts. Once the sector reaches a certain size, subsidies will either fade naturally or become unnecessary.
The European Commission does not direct national energy policies, so this responsibility rests on individual member states. Countries with marine energy resources and strong industrial capabilities, such as Sweden and Finland, have strategic advantages in leading the industrialization of the sector.
A great example is offshore wind. Denmark and Germany dominate this market and now control 99% of that through two European companies, Siemens and Vestas. With appropriate government support, marine energy can achieve similar success.
How important is private sector investment important to industry growth?
Private investment is essential. This is the other half of the equation. Public funding helps make the project bankable, which attracts private investors.
For example, the UK has been implementing a revenue support system for tide energy for several years. As soon as the scheme was introduced, the project began to move forward, and investors were interested. Clear business cases and economic viability encourage private investment.
This is a new sector and is appealing to investors looking to acquire early expertise and future financial rewards. However, the innovative nature of the technology makes the risk higher. Public funding plays an important role in mitigating these risks and ensuring that private investors are confident in their back projects.
How can Europe maintain its leadership in the marine energy industry due to growing competition between the US and China?
The US and China have invested heavily in marine energy. Over the past five years, the US has invested more than 500 million euros (as much as Europe as Europe) in wave and tidal energy. China is equally aggressive, often using pricing strategies to dominate global markets.
Europe still has technical advantages, but to maintain leadership, we must now industrialize. If we delay another five years, we and the Chinese industry can overtake European companies by attracting them with financial incentives. For example, the US has launched a 140 million euro grant system explicitly designed to seduce European companies into US waters.
The solution is to act quickly. Industrialization today secures Europe’s position as a global leader in marine energy.
Finally, what important milestones and breakthroughs do you want to see in 2025?
By 2025, we hope that commercial bids for French tide energy will move beyond pilot projects. It also aims to create a new subsidy system for vibration energy in markets such as Portugal, Ireland, and France.
Some companies that have received EU funds are ready to go, but need policy signals to complete the project and reach financial reach. This sector is on the brink of commercial viability. These final steps determine whether it will succeed or stall. We are very close to breakthroughs and with appropriate government support, 2025 could be a transformative year for European marine energy.
Source link
