Techno-Economic Feasibility Analysis of an Offshore Wave Power Facility in the Aegean Sea, Greece

Abstract

The decarbonization goals of each country necessitate the utilization of renewable resources, with photovoltaic (PV) and wind turbine (WT) generators being the most common forms. However, spatial constraints, especially on islands, can hinder the expansion of PV and WT installations. In this context, wave energy emerges as a viable supplementary renewable source. Islands are candidate regions to accommodate wave power resources due to their abundant wave potential. While previous studies have explored the wave energy potential of the Aegean Sea, they have not focused on the electricity production and techno-economic aspects of wave power facilities in this area. This paper aims to fill this knowledge gap by conducting a comprehensive techno-economic analysis to evaluate the feasibility of deploying an offshore wave power facility in the Aegean Sea, Greece. The analysis includes a detailed sensitivity assessment of CAPEX and OPEX variability, calculating key indicators like LCOE and NPV to determine the economic viability and profitability of wave energy investments in the region. Additionally, the study identifies hydraulic efficiency and CAPEX thresholds that could make wave power more competitive compared with traditional energy sources. The techno-economic analysis is conducted for a 45 MW offshore floating wave power plant situated between eastern Crete and Kasos—one of the most wave-rich areas in Greece. Despite eastern Crete’s promising wave conditions, the study reveals that with current techno-economic parameters—CAPEX of 7 million EUR/MW, OPEX of 6%, a 20-year lifetime, and 25% efficiency—the wave energy in this area yields a levelized cost of energy (LCOE) of 1417 EUR/MWh. This rate is significantly higher than the prevailing LCOE in Crete, which is between 237 and 300 EUR/MWh. Nonetheless, this study suggests that the LCOE of wave energy in Crete could potentially decrease to as low as 69 EUR/MWh in the future under improved conditions, including a CAPEX of 1 million EUR/MW, an OPEX of 1%, a 30-year lifetime, and 35% hydraulic efficiency for wave converters. It is recommended that manufacturing companies target these specific thresholds to ensure the economic viability of wave power in the waters of the Aegean Sea.