Evaluating the economic viability of near-future wave energy development along the Galician coast using LCoE analysis for multiple wave energy devices

Abstract

The economic profitability of future wave energy production along the Galician coast is assessed by analyzing the Levelized Cost of Energy (LCoE) under different Capital Expenditure (CapEx) scenarios and two discounts rates (5% and 10%). Wave resources for the near future under the RCP8.5 scenario are downscaled using SWAN, providing up to 75 m spatial resolution in coastal areas. The study's goal is to enhance the cost-effectiveness by selecting the most suitable wave energy converter (WEC) for each location. Fourteen WECs operating at different depths are considered. This analysis reveals that the Atargis device boasts the lowest LCoE for 64.2% of the coastal area, mainly in deep waters, with an LCoE of 77 €/MWh. In addition, the Oyster and Wave Dragon devices exhibit the lowest LCoE for 12.4% and 15.0% of the coastal area, respectively, excelling in shallow waters and near the coast, with values of 50 €/MWh and 97 €/MWh. These findings demonstrate the profitability of wave energy production along the Galician coast, even when considering a more conservative CapEx of 3 M€/MW, resulting in a cost of 140 €/MWh. This conclusion takes into account the evolving electricity prices in Spain, which reached 0.2068 €/kWh in the second half of 2023.