Case Study. WAVE HUB An Innovative Renewable Energy Solution

Transcription

1 Case Study WAVE HUB An Innovative Renewable Energy Solution Drafted by Laura Roman Trainee in the Thematic Coordination & Innovation Unit Directorate General for Regional Policy, European Commission Draft date: February 2012

2 Background Information Country: United Kingdom Region: South West England, Cornwall Duration of project: Funding (Average exchange rate / : 0,819456) Total budget: Wave Hub Development Costs: ERDF: Regional funding: Wave Hub Construction Costs: ERDF: Regional funding: ERDF Objective: Convergence 2

3 Table of contents Background Information... 2 List of abbreviations Synthesis Project description Strategic and political context Implementation Project design and planning The construction and installation of the infrastructure Management, monitoring and evaluation system Governance: Partnership and leadership Innovative elements and novel approaches to implementation The link to universities and research centres in the project preparation Linking research with industry during the operational phase The dialogue with the local stakeholders The communication of project results Key implementation obstacles and problem-solving ideas Project results The support for marine renewable technology The synergies with further developments in the region Sustainability and transferability Sustainability Transferability Conclusions: Key success factors and lessons learned Contact details Sources

4 List of abbreviations BIS Department of Business Innovation and Skills ERDF European Regional Development Fund GVA Gross Value Added PRIMaRE Peninsula Research Institute for Renewable Marine Energy ORECCA Off-shore Renewable Energy Conversion platforms Coordination Action OWE Offshore Wind Energy R&D Research and Development RDA Regional Development Agency ROC Renewable Obligation Certificates UK United Kingdom WEC Wave Energy Converters 4

5 1. Synthesis Investing in renewable energy has been given high priority by the EU in recent years as a measure to accelerate the transition towards a low carbon economy. Within this framework, the Wave Hub is one example of a project to support the advancement of technology and research and development (R&D) activities in the field of marine renewable energy in an EU Convergence Region. The aim of Wave Hub is to create the world s largest test site for devices that generate electricity from the power of the waves, supporting large-scale deployment of devices in the final stage before full commercialisation. The project is meant to offer developers of Wave Energy Converters (WEC) from around the world the appropriate conditions to prove the commercial viability of their devices, which is an essential step in order to gain the confidence of private investors in the future of the technology. The advantage of Wave Hub is the size of support it offers to device developers, as the site is equipped with an under-sea electrical "socket" where the WEC developers can plug in arrays of their devices and connect them to the national electricity grid. This allows the developers to test the reliability of their devices in a real under-sea environment, assess their impacts and technical advantages or weaknesses and improve them over a period of time. The project was financially supported and managed by the South West Regional Development Agency (South West RDA), located in the South West of England and was co-financed by the European Regional Development Fund (ERDF). It has been embedded in the Cornwall and the Isles of Scilly Convergence programme , contributing to the region's investments in renewable energy and research and innovation. Although the preparation phase started in 2002, the process of developing the project took more than 8 years. The construction phase of the project ended in late 2010, while the official opening took place in The first customer will deploy its devices at the Wave Hub at the end of It is therefore important to note that any region wishing to engage in such an investment needs to take into account a long development time-span. The investment in Wave Hub can be considered a valuable example to take for future regions wishing to support innovative renewable energy projects. Wave Hub is innovative not only due to the type of technology-push it offers to the industry, but also because it was designed to go beyond the primary needs of users such as the developers of Wave Energy Converters and engage the local community more. It impacts further local and regional stakeholders, as it aims to increase the region's competitiveness. Wave Hub acts as a catalyser to the local marine renewable energy sector, which started to build around it by adapting the local offer of skills and capacities of workers, supply-chain companies and academic institutions such as the Universities of Exeter and Plymouth. 5

6 2. Project description Wave Hub is a demonstration site for the generation of wave energy, with the primary goal of demonstrating the commercial viability of wave energy systems. It aims to cover the gap in the "route to market" of the innovations in the field of wave energy and shall become a "proving zone" for delivering energy from wave power. The project site is located near Hayle, around 16km off the coast of Cornwall in UK (see Figure 1). Wave Hub's long-term vision is to make the region the "destination of choice" for developers to test arrays of commercialscale Wave Energy Converters (WEC) in real offshore marine conditions. Figure 1. Location of Wave Hub (South West UK) Source: Wave Hub has obtained the consents for using an area of 8 km² of seabed where the devices can be installed. Importantly, it offers the possibility of connecting them to the national electricity grid through an electrical "socket" and via under-sea cables (Figure 2). The testing facility has a capacity for 20MW of wave energy generation (equivalent of the electricity needs of 7000 houses). This will allow up to 4 developers to share the site and plug in arrays of devices of 4-5MW capacity to the hub and test their reliability in converting the power of the waves in genuine under-sea conditions. In addition to the infrastructure, the project also provides a structured support to obtaining permits and consents for the equipment. Wave Hub will also contribute to obtaining major environmental benefits, as the wave energy devices will not emit greenhouse gases once they are commercially deployed and utilized on a larger scale. The project's goal is to also identify what other types of impacts the devices can have on the environment. The beneficiary of the ERDF grant has been the South West Regional Development Agency, who undertook the management and development of the project. The South West RDA also engaged in promoting the project and liaising with the industry and the local stakeholders for 6

7 developing a common vision on the project. The RDA organised a competitive tender to select an experienced engineering and managing contractor for the construction of the Wave. They cooperated closely for the duration of the project implementation. Figure 2. Schematic representation of Wave Hub Source: After the UK Government's decision to dissolve the Regional Development Agencies by 2012, the ownership of Wave Hub was transferred to the national Government, the Department for Business Innovation and Skills (BIS). Wave Hub Ltd was then set up by the BIS Department as a publicly owned company to manage the operation of the testing facility, continuing the work and plans already undertaken by the RDA. The direct users of the infrastructure provided by the Wave Hub are the developers of Wave Energy Converters (WEC), who will have the opportunity to test their prototypes in real-life settings before full commercialization. Further beneficiaries of the project are represented by the business and academic communities in Cornwall & the Isles of Scilly and South West, who would be able to develop news skills and projects in this field. Due to the convenient location of the hub close to the harbour in Hayle, the existence of related industries in the region would enable the further specialization of supply-chain companies, which would be engaged in the manufacturing of the commercial-scale devices, as well as in transport or maintenance activities. The academic community benefits through its close cooperation with the Wave Hub in terms of providing advice to developers as well as assessing their environmental impacts and collecting data for further research. The Wave Hub's infrastructure was installed in summer 2010 and energized successfully by November In March 2012, the installation of the navigation buoys will take place, to mark the consented offshore site. At this stage, the Wave Hub team is preparing the operational phase of the project and is cooperating with industry partners to deploy the first devices at the end of

8 3. Strategic and political context The Wave Hub has been conceived as part of South West England's efforts to contribute to the national and European targets for the transition to a low carbon economy. At the beginning it was linked to the UK's measures to reduce CO2 emissions by 20% by 2010 and increase in renewable electricity supply by 10% by More recently, the 2009 Renewable Energy Directive sets as target for UK to achieve 15% of its energy consumption from renewables by The national policy in the field of renewables particularly pays attention to the wind and marine energy sources. The national support for wave and tidal renewables in UK has been in the form of direct grants to research and demonstration projects, of which the Wave Hub is an example. Indirectly, the government supports the field by establishing Renewables Obligation Certificates (ROC), which is a scheme that rewards the use of renewables and penalises the more traditional carbon-intense energy consumption. 3 This support to tidal and wave energy is planned to increase by April 2013, when the number of tradable ROCs awarded to wave and tidal energy projects will increase from 2 to 5 megawatt hour. 4 The project is located in Hayle, county of Cornwall, South West of England. According to Hayle's mayor, Mr. John Bennett, the town was once booming during the industrial revolution in the UK, having been home to several engineering companies supplying the Cornish mining industry in the 18 th and 19 th century. Nevertheless, the 20 th century saw the decline of the traditional mining and ship building industries, with factories closing and rising unemployment and poverty. Today, the county of Cornwall is the poorest region in England. 5 Wave Hub is thus considered an "infrastructure plus" project for the region, as it supports the emerging marine energy sector, creating the opportunity for developing new skills and jobs in the local companies. It aims to make Cornwall and South West England an attractive location for WEC developers from around the world to conduct commercial-scale developments. Wave Hub is also part of the South West Marine Energy Park, which has been designated by the UK Government to be established here. The Park has as a core objective to provide a strategic framework for fostering the "triple helix" cooperation among businesses, the academic sector and the public sector, in order to attract and accelerate the investment and development of the marine renewables sector in the region. 6 1 RegenSW, 2003, "Renewable Energy Strategy for the South West", p. 6 2 Department of Energy and Climate Change, Tyler, 2011, p Wave Hub, 2011: retrieved Interview with John Bennett, Mayor of Hayle 6 Interview with Lars Johanning, PRIMaRE, University of Exeter 8

9 4. Implementation 4.1. Project design and planning The Wave Hub project went through a thorough process of conceptual design and planning before its commissioning and actual implementation. The initiator of the Wave Hub project was the South West RDA, which recognized the existence of natural resources for renewable energy and the possibility to obtain an economic value from the activities of protecting the environment as an asset for the Cornwall and South West regions as early as Thus, the RDA established RegenSW, which became a centre of expertise for renewable energy in the South West. RegenSW engaged together with South West RDA in the drafting of the Renewable Energy Strategy for the South West region, in which different options for investing in renewable energy based on the region's local assets were analysed, focusing the priorities of investment into marine energy. This was the starting point of the Wave Hub project's conception phase. A very influential further step in the start of the Wave Hub was the fact that South West RDA and RegenSW organised a workshop with partners from the industry, ranging from device developers and supply chain companies to legal experts, in order to establish a dialogue for better understanding the industry's needs. This workshop provided the team with hands-on insights on the biggest problems market actors were facing at that time. The major issues identified by the partners hindering market entrance of innovative wave energy devices were the high costs of providing the infrastructure for the pre-commercial phase of testing the devices. There was no centre that provided real sub-sea conditions and the connection to the grid, which were needed for increasing the confidence of the investors in such devices. These are two aspects that became the cornerstones of the project and were then included in the project design. A detailed feasibility study followed in 2004, the financial case was built in 2005 and the preparation of consent applications began in On the whole, the project preparation lasted more than 5 years, exceeding the initial planning of the South West RDA. Due to the complex nature of the project, the lengthiest procedures were the approval of numerous consents needed for the operation of the Wave Hub and the procurement of the innovative infrastructure (see section 4.6. for more details). 4.2 The construction and installation of the infrastructure The ERDF grant supported the construction and installation of the infrastructure at the Wave Hub, which was undertaken by working with six subcontractors. Based on a competitive tender, the technical project design was subcontracted to JP Kenny, a company who was also in charge of the oversight of the construction and procurement contracts of the project since The construction of the site took place in Within the project, 25km of subsea cable were manufactured and installed from the shore to the under-sea hub (see Figure 3). The hub and the cables connecting the wave devices and the grid were installed by further offshore contractors. Then, 80,000 tonnes of rocks were placed on the cables and hub to stabilize them. Onshore electrical works followed, and the sub-station at Hayle was built. The onshore horizontal directional drilling to construct a duct under the coastal sand dunes was carried out by civil engineers as one of the last steps in the completion of the construction process. 7 7 See Wave Hub, 2012: retrieved

10 The Wave Hub was open and energized for the first time in The first deployment of an array of wave energy devices will take place in 2012, with devices developed by Ocean Energy Limited, an Irish developer. Figure 3. The installation of the Wave Hub Source: Wave Hub project team All the project partners interviewed mentioned the important role of the ERDF funding in the decision to develop the project. The Wave Hub would not have happened in this form without the support of ERDF funds. Due to the high amount of investment needed in the innovative infrastructure, as well as the high uncertainty related to the performance of the WEC devices and the permitting and consenting process for them, the private sector needed to be incentivised through the provision of the capital assets in order to take the risks and invest in developing the devices Management, monitoring and evaluation system The management of Wave Hub project was performed by the South West RDA. It consisted of a person working full time on the project, with two further persons as part-time support during the project planning and preparation phase. Since 2003, there were two full time posts on the Wave Hub project, working directly with the industry to help develop the sector. Since the start of the operational phase of Wave Hub in 2012, there are four full time team members working at the newly founded Wave Hub Limited Company. The project team is monitoring the progress of the project and is in charge of cooperating with the device developers for deploying the WEC devices during their test phase. The project was conceived before the financial crisis started in 2008, which could explain the very ambitious targets it had set. Initially, the foreseen impact of the project was to create or 10

11 safeguard over 700 jobs to service the global wave energy markets and a Gross Value Added (GVA) to South West England of 32 million ( 27 million) per annum by However, the job creation perspectives were revised in 2009, due to the increased market uncertainty during the crisis and the lack of financing for developers. Thus, 95 jobs are planned to be created by 2015 and a gross new GVA of 6,58 million ( 5,4 million) (see Table 1. below). Table 1. Wave Hub planned gross results by 2015 Planned Results Gross new jobs created 95 Gross new GVA created ( 5.4 million) Planned Impact Net additional employment 81 Net additional GVA ( 4.6 million) Source: Claire Gibson, Project Manager of Wave Hub; (Average exchange rate / : 0,819456) The evaluation of the progress in achieving the project's goals will be performed through a survey developed for the device developers and supply-chain companies, also measuring the number of new jobs and gross new GVA created Governance: Partnership and leadership The Wave Hub was initiated by the South West RDA with the vision to develop the South West and Cornwall region as a world leader in generating electricity from wave power. The South West RDA was considered by most interviewees as crucial in building the vision of the project and bringing further regional, national and global partners on board for implementing the project. The project design of the Wave Hub was undertaken under a cooperation framework called the Wave Hub Partnership Board, which the South West RDA developed with the local Town Council in Hayle, the Crown Estate 9, the UK Government's Department for Energy and Climate Change, the universities of Plymouth and Exeter and partners from the industry. The Partnership Board met a few times a year in the beginning of the development phase. It was used as a mechanism for informing and consulting with the partners on the progress of the Wave Hub project. The project team put high value on engaging the different stakeholders throughout the project development and implementation phases. The partnership with the device developers and the local supply chain companies was very important from the beginning, as it helped shape the design of the Wave Hub's concept according to the needs of the industry. In addition, the partnership with PRIMaRE (a cooperation project between the Universities of Exeter and Plymouth, see section 4.5.1), provided the Wave Hub team with more expertise and academic background on the environmental impact and technical issues for the implementation and operational phases of the project. 8 AD Little, Wave Hub Summary Business Case, p.9. 9 The Crown Estate is a commercial organisation, tasked by the UK Parliament with enhancing the value of the property portfolio it manages and generating a profit for the benefit of the UK nation. See retrieved

12 All in all, the integrated approach to dealing with the local stakeholders contributed to ensuring an efficient governance of the project. Moreover, especially by developing the link between the public and private sectors and the universities within the project, the South West RDA established a "triple helix" partnership Innovative elements and novel approaches to implementation During the implementation of the project, the Wave Hub team proved to be very resourceful in developing several practices that can be considered innovative in the context of EU-funded projects: the team strengthened the link of the project with universities and research and is also connecting the academic community to the industry (device developers and supply chain companies), they engaged in a thorough dialogue with the local stakeholders and found new ways of communicating the concept and results of the project to the local community The link to universities and research centres in the project preparation The strong link to the research community and constant involvement of the scientific partner can be considered good practice in the new approach taken by Wave Hub to implement the investments in wave energy technology. Wave Hub has a close partnership with PRIMaRE, the Peninsula Research Institute for Renewable Marine Energy. PRIMaRE is the cooperation platform between the Universities of Exeter and Plymouth and was set up with funding from the ERDF in 2007, in order to give support to the emerging marine renewables industry in South West England. The researchers at PRIMaRE have supported the Wave Hub with resource characterisation and an environmental survey, which helped in providing data for the environmental impact studies performed at the project site. The Institute also provides facilities for research on marine operations and navigational risks, or for testing the offshore reliability of marine renewable energy components and systems among many Linking research with industry during the operational phase As part of the cooperation with Wave Hub, PRIMaRE also works with WEC developers in supporting them through the process of device deployment. This has already been the case for the Ocean Energy Limited, the Irish developer company who worked first with PRIMaRE to prepare their device for the full-scale deployment, which will happen at the Wave Hub at the end of In addition, PRIMaRE has developed in partnership with Wave Hub and the industry additional testing facilities for marine energy devices, such as the Falmouth Bay (FaB) Test facility - a wave energy test site to deploy scale models of devices that are in a less advanced stage than the one required at Wave Hub. The engagement of the universities with the industry partners enhances the role of the universities in contributing to regional growth, which is a good example of achieving the goals of the "triple helix" partnership The dialogue with the local stakeholders The Wave Hub site is an area which has been appointed a "safety zone" by the UK Government; therefore different activities that were normally undertaken there were affected. This included fishing, maritime transport or tourism and surfing activities. This is why the team engaged in impact assessments and a thorough dialogue with the stakeholders, coming to a common understanding on the impact of the project, as well as on the measures that should be taken by all sides to mitigate the problems that may arise from Wave Hub's activity. Thus, after a consultation process with the navigation stakeholders, an agreement was reached and an international decision was taken to have a separation zone and slightly alter the route 12

13 of outgoing ships in order not to interact with the devices connected to the Wave Hub. The surfers' community was also consulted with, as well as the natural heritage or environmental and surfers' associations. A particularly challenging dialogue took place with the fisheries representatives, which will not be allowed to fish in the area anymore. The team inspired itself from the guidance used in offshore wind energy projects and employed a fisheries liaison officer to engage into a formal consultation process with the mariners. This was developed into a common practice for dialogue. Compensation was agreed for using the site during the construction phase and payments to fishermen were made. During the operational phase, the compensation will take a different form, as both parties agreed to mitigate the impact of the project by investing in concrete projects that help the fishing industry. This is why a strategic mitigation fund was created by Wave Hub, which will be used to match fund projects co-funded by the European Fisheries Fund and improve the harbour in Hayle for the fishing community The communication of project results The project team made use of various channels to share the message of the project and its results. Alongside the project website and the brochures, the project choose a symbolic location for the office in the "John Harvey" house in Hayle, where the former industrial revolution leader lived during Hayle's prosperous times. The office has an open door to the local community to come and inform themselves of its vision. In addition, the project has a YouTube channel where a series of videos were published with images from the construction phase of the hub. The local press is updated with the latest developments through press releases and appearances on TV. In addition, the Wave Hub team also participates in disseminating the project's goals in schools, educating the local youth on the issue of marine energy Key implementation obstacles and problem-solving ideas One challenge to overcome by the Wave Hub team during the preparation phase, which delayed the start of the implementation phase by a year, was the process of gaining consents from the relevant regulatory bodies to allow construction and operation of the hub. The fact that there was no precedent for the development of a similar testing centre was an obstacle as the full understanding of likely environmental impacts of the development, needed to support the consent application was lacking. 10 However, with the help of thorough impact assessments and the support received from PRIMaRE, the project received the needed consents to be able to start the construction and installation of the hub. One further unexpected obstacle encountered during the implementation of the project was the procurement process for constructing the hub. Due to the complexity and novelty of the approach, the offers received in the first procurement round did not generate the desired Value for Money. This is why the team decided to stop the process and go back to the design board, reviewing the project design and change perspective. The project could not be contracted out to civil engineering companies. The most important step was then to seek expert advice from technical experts who had been working with offshore marine projects before. This resulted in the project being split in 6 separate contracts, which gave a better value for money and allowed the project to be realised within the planned budget. Even though the 6 contracts proved to be more challenging to manage, for the project team it proved to be a learning experience to recognise the need for expert help, but also to accept delays in the project implementation in order to achieve better results. 10 AD Little. 2005, Wave Hub Summary Business, p

14 Some of the risks which were foreseen by the team from the onset of the project were from related to the demand for the hub's services. This depended particularly on the number of WEC devices the developers would be able to test by the time the construction of the Wave Hub would be finalized. This uncertainty was augmented by the ongoing economic and financial crisis, which had an impact on the activity of the device developers. The companies had fewer resources to engage in R&D and innovation as intensively as planned, which is why the four WEC developers that had shown interest to deploy their devices at the Wave Hub as soon as the site is open, are still not advanced enough to test them on a precommercial scale. However, the Wave Hub team worked with several device developers, advising them on what the requirements are for being able to test at the Wave Hub. 5. Project results The ultimate success of the project can be measured in the number of wave energy developers it manages to attract for connecting WECs to the grid. At the moment, the project site is in the first operational year after the opening in 2011 and has attracted two WEC developers with firm commitments. The first deployment of a device is thus under preparation, as Ocean Energy Limited, an Irish company, has agreed to install its device towards the end of The novelty of the project concept is especially enhanced if considered within the context of the South West UK region. The decision to provide large scale support for environmental technology development and foster innovation for the transition towards a low carbon economy in a convergence region can be regarded as innovative. There are several more innovative results that make the project an innovative "plug-and-play model," equipped to support the emerging market for wave energy devices: 5.1. The support for marine renewable technology The part of the R&D process of the wave device technology that is supported is meant to help devices achieve the final stage of the innovation cycle, also known as level 8 (of 9) of the Technology Readiness Level. 11 This is important because even though there are several test facilities around the EU that provide the infrastructure for the initial testing of prototypes, the Wave Hub offers support to the later precommercial phase. This was considered the missing link in the process to market entry by the developers, as it is highly cost intensive and risky. By offering the opportunity to test the devices in real under-sea conditions before their full commercialization, the hub reduces the risks of the devices and it increases the confidence of private investors in the wave energy technology market. The possibility to deploy arrays of devices also makes the Hub more attractive to developers. It offers the device developers a longer time-frame for testing and refining the devices. After the deployment of a single device at the demonstration site, the WEC developers can build on the results and test it several times to improve it, which gives the companies more security in the process of R&D. Easing the consenting and permitting process for developers to use the site is another feature of the Wave Hub services, as the team will offer advice to regarding the steps needed for the consent application. Especially due to the fact that the field 11 The Technology Readiness Level is a scale of measuring the transition of a technology from scientific research to fully operationmal systems, see: 14

15 of wave energy is very new, there are uncertainties with regard to the environmental impact of the devices, which normally makes the process of obtaining the various consents for deploying them very lengthy. The ongoing environmental monitoring at the Wave Hub will offer data for the developers consent applications The synergies with further developments in the region The vision of transforming the region and specializing on a forward looking field such as marine renewable energy was one of the motivations for investing in Wave Hub. The Wave Hub project's concept was the catalyser of a series of partnerships and developments in this new sector in the region. This is how, in parallel with the Wave Hub development, further activities in related fields were supported with further local and ERDF funds, including the founding of PRIMaRE to enhance the research activities. In addition, the South West Marine Energy Park was created to provide a common platform for cooperation for all the regional market stakeholders, including ports and offshore supply chain infrastructure and vessels infrastructure. 12 The Wave Hub was seen as an opportunity to also change the course of Hayle s development by building on the assets of the region and stimulating the activities of the local community towards the field of marine energy. To this end, the harbour area is undergoing a renewal, as further local and EU funds are invested in the development of a Marine Renewables Business Park, which will provide the location for device developers using the Wave Hub, supply chain companies and further businesses in the marine renewables industry. 6. Sustainability and transferability 6.1. Sustainability The project was designed from the beginning with the view to allow developers of Wave Energy Converters to use the testing facility at the Wave Hub. The infrastructure has a 25 years lease period, which is considered a sufficient amount of time for the technology to advance. The facility is now operated by Wave Hub Limited on a not for profit basis. It is currently dependent on a grant from the UK government, which covers the operational costs of the project for the first four years, until It is planned that the project will generate revenue from berthing fees from the device developers by then. The South West RDA took into consideration a number of risks that characterise the project, which were highlighted by the risks assessment performed for the project. This included the risk of migration of developers due to delays in the construction of Wave Hub, the possibility that device developers are not ready to deploy by the time the Wave Hub is constructed, or that device developers leave the hub after their three year tenancy. 13 At the moment, the sustainability of the project depends on the readiness of the device developers to deploy the devices at pre-commercial scale at the hub. Their readiness is a function of the technological development stage of the devices, the existence of local supply chain companies and facilities as well as the access to finance to support the installation of the 12 Future evaluation reports will assess the benefits the project brings to the local small and medium-size enterprises (SMEs), as well as the local workforce. 13 Arup, 2009: Appraisal of the Wave Hub (Construction Costs) 15

16 devices at the Wave Hub 14. Since not all four berths are yet occupied by device developers that test their technology after one year from the opening the Hub, the project's goals appear to be very optimistic. Several stakeholders characterised Wave Hub as being "ahead of the market", which emphasises its innovative nature. In addition, the financial crisis was mentioned as a further reason for the current slow development of the devices up to the stage required for deployment at the Wave Hub. The development of the South West Marine Energy Park as a platform for the marine renewable industry in the region was welcomed by the device developers and the project stakeholders as a key step towards accelerating the pace of investments in the field. It secures the he strategic framework conditions to improve the skills of the workforce and the capabilities of the existing businesses came together in the region. There are perspectives that the market will develop in less than years, especially also due to the high synergies with the offshore wind energy industry, which can offer lessons learned. 15 The project team also sought new ways to engage with other industry stakeholders and to create synergies with related renewable energy sources in order to expand the return on investment at the Wave Hub. This will happen through collocating offshore wind energy (OWE) devices that are also in the pre-commercial testing phase. As a planned result, the Wave Hub will diversify its range of devices supported by cooperating with the Energy Technology Institute on installing an OWE device at the hub and connecting it to the grid in the near future to test it for commercialization Transferability Wave energy devices are highly dependent on the geographical and resource characteristics of the location. This is why the project would be transferable only to regions where the nature of the waves would allow it to generate sufficient energy. According to the recently published ORECCA European Offshore Renewable Energy Map (2011, p.5), there are several EU Member States (and members of the European Economic Area) with high wave resources apart from the UK, such as Ireland, France, Spain, Portugal, Norway and Iceland. The strategic thinking to support an emerging sector like environmental technologies for harnessing new renewable energy sources contributes to enhancing the project's transferability. Further regions could also engage in a similar process of capitalising on their resources and follow the "golden thread" of accelerating the transition to a low carbon economy. 16 The concept of the project to provide capital for supporting the large scale deployment of renewable energy technology is one valuable transferable element, which further regions could consider. Nevertheless, it is also necessary to properly quantify the risks of the project, and consider the sustained efforts needed by the project managers over a long period of time. The partnership component of the project is an example of good governance practice by the South West RDA. The fact that the technology-push measure was accompanied by consultation and dialogue with the industry and regional and national stakeholders has ensured that the local community and government, the supply chain companies, the national regulators and the device developers are working towards the same goals. This was also 14 Interview with Tim Stiven, Ocean Power Technologies 15 Interview with Tim Stiven, Ocean Power Technologies 16 Interview with Claire Gibson, Project Manager of Wave Hub 16

17 important in the process of obtaining consents for the project, which is another activity where there are lessons to share with regions wishing to implement similar projects. The Wave Hub project team at the South West RDA, the current Local OP of Cornwall and Isle of Scilly and the partner Universities have already been engaged in INTERREG projects for sharing experience with different other regions. For instance, through the MERiFIC 17 project the regions of Cornwall and Isles of Scilly and Finistere (France) are exchanging good practice on resource assessment, supply chain development and stakeholder engagement. Furthermore, the Intelligent Energy Europe project called SOWFIA 18 is another platform in which the Universities in the region are involved together with eight other partners who develop wave farm test centres in seven European countries. They aim to develop European wide streamlined Environmental and Socio-economic Impact Assessment tools for offshore wave energy developments. 7. Conclusions: Key success factors and lessons learned The project has been effectively prepared based on the strategic vision and professional project development of the South West RDA and project team together with multiple stakeholders. Its ultimate success is not yet proven. The strategic vision of the South West RDA in deciding to orient the investments of the region towards the niche market of marine renewable energy is grounded in the region's natural and human capital assets. It was important to acknowledge them and create the "greenhouse" for environmental technology in the South West. 19 The project will ultimately be a success if it continues to work with the regional stakeholders to attract the developers of Wave Energy devices to test them at the site, and if it sustains the process of creating the conditions for developers to establish further activities in the region. The thorough planning and design of the project contributed considerably to the implementation of the project. The numerous impact assessments and the work with several technical experts to provide the best design for the project were key factors to deliver the project concept. The governance of the project can be considered another positive factor. By engaging with the industry and the local government partners, and creating the "triple helix" partnership with the Universities of Exter and Plymouth, the Wave Hub team is working towards securing the sustainability of the project. Equally important was the building of confidence within the private sector in an emerging field such as wave energy. It was essential to have the government support in the form of ROCs in order to steer the investment of the private sector in this field, since private sector companies migrate where there are incentives from the public sector to locate. All the interviewees mentioned the importance of the stakeholder engagement process as crucial in ensuring the success of the project. Hayle's mayor, John Bennett, said it is highly important to have stakeholders involved from the beginning in the project development. Wave Hub was built around the concerns of the local stakeholders, with whom it was in constant dialogue. This also resulted in making the local community proud, as bringing an Interview with Theo Leijser, Local Lead Operational Programme Cornwall and Isles of Scilly 17

18 innovation and engineering project in the region revived the "engineering heritage" of Hayle and Cornwall. 18

19 Contact details Claire Gibson Project Manager Wave Hub John Harvey House 24 Foundry Square Hayle, Cornwall TR27 4HH Tel: +44 (0) Fax: +44 (0) Internet: Interviewees The Wave Hub team: Claire Gibson Project Manager Wave Hub Helen Wilson Business Development & Communication, Wave Hub Colin Campbell Marine Operations Manager Robert McConnell Electrical Engineer Project Stakeholders: John Bennett Mayor of Hayle Theo Leijser Local Lead Operational Programme Cornwall and Isles of Scilly Lars Johanning University of Exeter and PRIMaRE Johnny Gowdy - RegenSW Chas Spradberry JP Kenny Tim Stiven Ocean Power Technologies Colin Cornish Marine Energy Matters Study The information contained in this study is up to date as of: 8 February This case study has been prepared by Laura Roman (laura.g.roman@gmail.com) during her 5- month traineeship at the European Commisssion, DG REGIO, Unit D2 Thematic Coordination & Innovation. The contents and views expressed in the case study are those of the author and do not necessarily reflect the opinions or policies of the European Commission. 19

20 Sources AD Little, 2005: Wave Hub, Summary Business Case, retrieved Arup, 2009: Appraisal of the Wave Hub (Construction Costs) Department of Energy and Climate Change, "Renewable Energy Policy", x, retrieved ORECCA (Off-shore Renewable Energy Conversion platforms Coordination Action) European Offshore Renewable Energy Map, Tyler, Peter (2011): "Policy Paper on Renewable Energy and Energy Efficiency of Residential Housing. United Kingdom", in "Expert Evaluation Network Delivering Policy Analysis on the Performance of Cohesion Policy " on/2011_synt_rep_uk.pdf, retrieved