1. Tidal Power: China’s Connection to an Emerging Industry Beijing Energy Network BEER Lectures Mar 19, 2014 Evan Cervelli, Maritime Tidal Energy Corp. (MTEC) 1979 2014? 1

2. The Talk Overview of Marine Renewable Energy Tidal Energy Devices (Barrage vs. In-Stream) Existing Tidal Capacity Tidal Energy Plans Reasons for successes/failures Opportunities Challenges 2

3. Take Aways Better idea of what is going on Appreciation for the building momentum 3

4. Tidal Energy in the Past Barrage/Dam 4 Tidal Plants in World 4

5. World Resource Map: Benefits of Tidal: -Energy density, predictability. Quick facts: 10-25% of total worldwide electricity demand could be supplied by wave and tidal energy. Worldwide potential to develop 748 GW of ocean energy 2050, leading to a carbon savings of 5.2 billion tonnes of CO2. Estimated $60 billion/year industry by 2050; current activity estimates reaching about $1.2 billion in expenditures by 2015. Canada has one of the most significant and attractive marine renewable energy markets in the world with: Abundant energy sources: Wave, tidal, and river resources across the country. World class resource: Minas Passage (just one area of The Bay of Fundy) has a potential of 2,500 MW of extractable energy. Established market drivers: Projects under development in Nova Scotia supported by feed-in tariffs (FITs) up to 65.2 cents/kWh. Supportive policy regime: Nova Scotia’s Marine Renewable Energy Strategy sets a goal of 300 MW by 2020 and establishes a new licensing system. Why Tidal? 5

6. China Tidal Energy Potential 6

7. MRE: Innovative Technology 7

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9. -Annapolis -Korea -Map of Bay of Fundy Investment huge Many environmental concerns The interest continues Barrage Tidal 9

10. Jiangxia -Image of Jiangxia, off shoot land reclemation farming and aquaculture industry. -Well chosen location for environment In 1960 70 barrages built in China, all but Jiangxia decommissioned due to siltation etc. 10

11. Dynamic Tidal and China 11

12. In-Stream Tidal: Big Players 12 Windmill-like device Turbine farms Overcomes problems of barrage technology Other advantages still valid

13. The Financial Case – “Currently the cost for generating electricity using an OpenHydro Turbine is comparable to offshore wind. Longer term, economics of large scale deployment will trend costs towards those for on shore wind” OpenHydro web site It is estimated that tidal stream energy could become competitive with current base costs of electricity by the time the UK has installed its estimated economic capacity of 2.8 GW UK Ocean Industry 13

14. Tidal Energy Demonstrations to Date Eight tidal energy developers in the world who have undertaken significant tidal turbine demos – 2002Hammerfest StromNorway.3 MW – 2003Marine Current TurbinesEngland.3 MW 14

15. Tidal Energy Demonstrations to Date – 2006Clean CurrentCanada.06 MW – 2006VerdantUnited States.03 MW – 2006OpenHydroScotland.25 MW – 2008Marine Current N. Ireland 1.2 MW Turbines 15

16. Tidal Energy Demonstrations to Date – 2009Open HydroCanada 1 MW – 2009GCK /LucidS. Korea 1 MW – 2010Tidal GenerationScotland.5 MW – 2010Atlantis ResourcesScotland 1 MW 16

17. Tidal Energy Demonstration Projected - 2011Hammerfest StromScotland 1 MW - 2011Voith HydroScotland 1MW - 2012Marine Current /MBP&PCanada 1.5 MW - 2012Clean Current/AlstomCanada 2.2 MW - 2012Atlantis/Irving/LMCanada 1MW ?Open Hydro (re-deploy)Canada 1MW 17

18. Plans For China Atlantis Resources Verdant Dynamic tidal Barrage? Harbin U research? Taiwan?….long term due to resource challenges 18

19. What can we learn – Pace – Size – Countries leading the charge – Viability – Designs continue to evolve 19

20. Tidal Energy Commercial Plans 2012-13Marine Current TurbineWales 10 MW 2017-20Scotland100 MW 2011OpenHydroFrance 4 MW By 2020Scotland 200 MW 2013-15 Hammerfest StromScotland 10 MW By 2020Scotland100 MW 2013Korea East West Power Co.S. Korea 90 MW 2011-12 VerdantUSA 1 MW By 2020 SSE RenewablesScotland200 MW By 2020 MaygenScotland400 MW 20

21. What Does This Tell Us World activity centered in Scotland 4 small commercial arrays in the next 2 years 7 large commercial arrays in the next 10 years Serious tidal energy commercial development No commercial plans in Canada …..yet A tidal/ocean industry is beginning to evolve 21

22. Success Factors Resource Electricity Costs/Trends Political Environment R &D Proof-of-Concept Demos Policy, Regulations Incentives Partners/Investors Community Support 22

23. Challenges Hostility of Environment Deployment Initial Costs Proximity to Grid Environment/Fishing Interests Design Financing Government Budgets 23

24. Summary United Kingdom is a world leader Canada close behind China was once a world tidal leader. Lots of tidal and MRE potential in China Things are happening but slowly. UK plan – 1 GW by 2020 Scotland – Leases for 700 MW by 2020 Competitive – When 2.8 GW installed OREG – 100 MW in NS by 2020 Pins being placed to realize this objective 24

25. Opportunities Multiple commercial arrays Tidal energy industry Ocean energy industry Export Sharing the Chinese tidal experience (Come to ICOE2014!) Transferring offshore oil and gas expertise to MRE. Manufacturing (Capacity in China) Where will the centre of excellence develop? Wind = Denmark Tidal = ? 25

26. Sources / Acknowledgements http://mhk.pnnl.gov/wiki/images/3/33/Releva nt_Ocean_Energy_Activities_in_China.pdf 26

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28. Tidal Energy The Momentum is Building 28