OTEC Development

This Task is undertaken by different working groups (WG):

WG-1: Resource Assessment

1. Literature Review
2. Coordination of Member Countries participating in the Annex
3. Soliciting inputs based on pre-fixed schedules
4. Gather information from available source from other member countries
5. Collation, presentation and documentation in the form of report and web page

WG-2: Status and Plans

1. Prepare questionnaire
2. Solicit information from participating countries
3. Gather information from available sources from other member countries
4. Collation, documentation in report form

Final results will be presented in a workshop to work on the future road map.

WG-3: Economics on OTEC

Historical and current estimates of capital and operational costs associated with technically sound designs of closed cycle (CC) and open cycle (OC) OTEC plants will form the original data base for this project.  These will be used to estimate the levelized cost of electricity (LCOE) production under specific loan rate terms available from different sources ranging from commercial banks to concessionary loans from development banks. The LCOE provides the rate ($/kWh) required to breakeven over the assumed life of the plant. In the case of the OC-OTEC plant the combination of electricity rate ($/kWh) and desalinated water rate ($/m3) required to breakeven will be estimated. At this stage of development, when considering commercial loans, the investment rate of return would be given by a rate charged ($/kWh) above the LCOE.

This Tasks is carried out by Dr Luis Vega and Mr. Benjamin Martin from Xenesys, in collaboration with the IEA-OES Executive Committee. 

Status of OTEC Power Plants
(May 2017)

White Paper on OTEC

In 2021 a White Paper on OTEC was prepared under the auspices of the IEA-OES seeking to elucidate the current state, the potential, and future prospects of OTEC technology.

This document addresses policymakers and developers, offering a comprehensive update on the evolution of OTEC from its conceptual stages to its present-day applications and beyond.

Furthermore, it outlines the environmental impacts, economic considerations, and the strategic recommendations necessary to propel OTEC towards commercial viability and global energy market integration.



Recomendations on OTEC Development:

• Financial Hurdles: The primary obstacle for wider adoption of OTEC technology, especially below 10 MW, is financial rather than technical.
• Proven Reliability: The basic electricity generation process has shown reliability at facilities like the Hawaii Natural Energy Laboratory and the Okinawa Deep Seawater Research Center.
• Need for Financial Guarantees: There is a crucial need for financial guarantees to advance from small demonstration plants to pre-commercial prototypes. These prototypes are essential for gathering operational performance data to attract further investment.
• Financial Incentives: Implementing financial incentives, such as feed-in tariffs, could promote the development of larger-scale facilities.
• Research Requirements: Additional research is needed to scale up OTEC plants beyond 10 MW. This includes addressing challenges related to the large size of the Cold Water Pipe and ensuring its long-term reliability.
• Industry Collaboration: Seek insights from the oil industry, including numerical simulations, design optimization, and wave tank model testing.
• Educational Gap: Increase educational efforts and publicity to raise awareness within governments and the public about the green benefits of OTEC technology. Intergovernmental agencies could support the establishment of educational programs.
• International Cooperation: Encourage international cooperation among national governments to share information, plan joint projects, pool funding, and potentially reduce duplicated efforts.
• Private Sector Engagement: Involve the private sector, including project developers, venture capitalists, banks, consultants, contractors, oil and utility companies, and classification companies. Intergovernmental agencies can play a key role in facilitating these communications.