Chapter Iv Cost-Benefit Analysis. Major Capital Cost Items

CHAPTER IV: COST-BENEFIT ANALYSIS Major capital cost items for a wave farm include: initial and replacement WEC devices, moorings and foundations, power conditioning equipment at the hub and submarine cables, grid connections, and environmental permits. Additional non-capital costs include annualized operations and maintenance, and personnel costs. A formal request for information (RFI) was sent to OPT. The RFI asked for WEC performance data and cost specifics. They declined to respond to the RFI completely. The wave energy industry considers almost all design information extremely proprietary and compromise competitive advantages if specifications are released. Consequently, WEC device performance specifications were limited to that of†¦show more content†¦The total installation cost is estimated between 4 and 5 million dollars (Jarocki). Maintenance costs for WECs are expected to be substantial due to the inherent challenges of operating in a marine environment. Seawater is exceptionally corrosive, and the variable loads and shock forces that WECs will be subjected to will require frequent intervention and mitigation. Offshore oil and gas operations have shown that offshore operation and maintenance (OM) costs are typically 5-10 times higher than similar onshore activities. Survivability and device failure are further issues that will drive up operational costs and demand high safety requirements and strict tolerances. Historical buoy data shows that significant wave heights of 10 to 11 m occur every few years in Delaware (Service 2005). Additionally, the accumulation of microorganisms, plants, algae, or animals on wetted surfaces (biofouling) poses risks to underwater construction, structural stability, and efficiency of power absorption. There is a recommended 3-month maintenance period for the OPT buoy technology (Ocean Power Technologies 2016). 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