Economic viability of floating wave power farms considering the energy generated in the near future

Abstract

This article aims to analyse the economic viability of floating wave energy farms for the present and the next twenty years. The energy potential of the waves mainly depends on the climate, so the current and near future analysis is crucial to determine the economic viability of wave energy farms in a particular location. Current and near future wave resources were considered to assess the main parameters (Net Present Value (NPV), Internal Rate of Return (IRR) and Levelized Cost of Energy (LCOE)) that allow to know the economic feasibility of wave energy farms. This study takes one step forward in determining the economic evaluation of wave energy farms located in deep waters using their future energy projections. The case of study in this paper is the Atlantic coast of the Iberian Peninsula. Results indicate that the future wave energy reduction principally affects the NPV and LCOE of the wave farm.