A commercial power plant off the coast of Portugal began converting wave energy into grid-powering electricity yesterday.
The Agucadoura project is claiming to be the first comercial wave power plant.
However, yesterday Ocean Power Technologies, Inc. (Nasdaq: OPTT; OPT.L) announced that it, too, has deployed its first wave-power generating buoy off the coast of Spain, in a contract with Iberdrola (IBR.MC).
Both plants have yet to be built out to their full planned capacity.
The Aguacadoura project, which is being run by the investment firm
Babcock and Brown, employs snake-like articlulated steel mechanism,
moored to the seabed to create electricity.
The first phase of the project cost about $12.55 million, according to
Reuters. The project will eventually be increased in size tenfold to
provide 2.25 megawatts of power.
No projected completion date was given.
"The price is not competitive at the moment and the project was
possible because of the feed-in tariff in Portugal, which basically
allows (us) to continue developing the technology … But we hope that
in 15 years wave power will be where wind is now, that is extremely
competitive," said Anthony Kennaway, a spokesman for Babcock and Brown.
Babcock and Brown recently reduced its share in the project from
75% to 46%. Other shareholders include Portugals main energy company
Energias De Port (EDPFY.PK), engineering firm EFACEC and Scottish Firm
Pelamis Wave Power.
Read the Reuters coverage.
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