A study into commercial and technical considerations for the future use of marine energy in New Zealand

New Zealand's geographical location in the “Roaring Forties” with its high winds and energetic sites provides it with excellent wave resources, and a good tidal resource in several locations, including the Cook Strait. The New Zealand marine energy industry is still in its infancy and remains mainly at a research and development stage; however, it is poised for gradual growth as the sector gains momentum. The New Zealand electricity market is unsubsidised and there are limited funds available to assist developers. Projects struggle for economic viability, making financing and insurance difficult to obtain without government support. Using the NZ Government Price Path as a benchmark, the Levelised Cost of Electricity will remain above projected wholesale prices until at least 2030. If cost reduction pathways are successful, it may be possible to enter the wholesale market by supplying peak demand electricity after 2030. However, there is a risk that marine energy will never enter the market as other renewable energy forms could gain a sustainable competitive advantage.