The economics of tidal power

Concern over global climate change has led policy makers to accept the importance of reducing greenhouse gas emissions. This in turn has led to a large growth in clean renewable generation for electricity production. Much emphasis has been on wind generation as it is among the most advanced forms of renewable generation, however, its variable and relatively unpredictable nature result in increased challenges for electricity system operators. Tidal generation on the other hand is almost perfectly forecastable and as such may be a viable alternative to wind generation. This panel paper summaries the costs and benefits of tidal generation and illustrates the break-even capital cost for tidal generation on a real electricity system. The low break-even capital costs and limited resource availability suggest that tidal generation is not a viable option for the case system at the present time.