Economic Analysis of a Kuroshio Current Power Plant in Taiwan
Journal
OCEANS 2024 - Singapore
Part Of
Oceans Conference Record (IEEE)
Start Page
1-5
ISBN (of the container)
9798350362077
ISBN
9798350362077
Date Issued
2024-04-15
Author(s)
DOI
10.1109/OCEANS51537.2024.10682362
Abstract
This study examines the levelized energy cost for developing Kuroshio power farm in a near-shore area off Southeast Taiwan. It assesses the proportions of various cost components and explores potential avenues for cost reduction. Since the locations for Kuroshio power generation are further offshore and in deeper waters than offshore wind power, there are relatively significant risks and higher maintenance time and costs involved without any prior experience with Kuroshio power generation facilities in Taiwan. We compare the levelized energy cost of three scenarios of power capacity using a discount rate. The initial commercial Kuroshio power plant should establish the levelized electricity cost to reflect development costs accurately. Subsequently, with gained experience, cost and technical parameters can be adjusted according to actual circumstances to calculate subsequent levelized costs. With a 15% discount rate, the levelized cost exceeds that of Taiwan Power Company's natural gas power generation, reducing its market competitiveness. Thus, initial development necessitates government subsidies and the establishment of reasonable incentive systems and feed-in tariffs to stimulate developer interest. To further incentivize developer participation in the Kuroshio power market, the government can designate suitable areas for ocean current power generation based on existing data and coordinate with local fishermen and residents through interdepartmental collaboration to reduce resource surveys and public compensation costs. As technology advances and risks diminish, developers may be inclined to accept even lower discount rates and invest independently in Kuroshio power generation development. Overall, the levelized cost analysis suggests that a 200-MW scale Kuroshio power farm could be commercially viable in Taiwan.
Event(s)
OCEANS 2024 - Singapore, OCEANS 2024, Singapore 15 April 2024 through 18 April 2024. Code 202913
Subjects
Kuroshio turbine
levelized cost of energy
ocean energy
Publisher
IEEE
Type
conference paper