Earlier this month, the Minerals Management Service (MMS) and the Federal Energy Regulatory Commission resolved jurisdictional disputes over offshore energy leasing rights. 

 

Many attribute the ocean wave and tidal energy industry’s slow growth to a lack of capital and investment, jurisdictional and leasing inconsistencies and uncertainty regarding environmental impacts. Currently, start-up firms are exploring more than 80 different ocean, tidal and river technologies, but have failed to attract much interest from investors. Edwin Feo, a partner at Milbank, Tweed, Hadley & McCloy, believes that, in order to attract investment, the MMS must issue leases longer than its normal practice of roughly five years. He maintains that ocean wave technology developers will need more long-term guarantees of access to resources to successfully build projects that will prove to investors that the industry has staying power. Although the MMS has yet to announce its leasing timetable, it is slated to unveil a report addressing potential development areas within 45 days. 

 

Despite some setbacks, researchers remain optimistic about the potential energy gains. Roger Bedard, head of the Electric Power Research Institute's wave power research unit, projected that by the year 2025, it would be possible to have nearly 10 gigawatts of ocean energy and 3 gigawatts of river energy online. Each gigawatt can power roughly 400,000 houses. He further emphasized that the West Coast, especially Alaska and California, would benefit most from the technologies.  

- Adrine Akopyan

 

Marine Power Not Ready For Prime Time, Experts Say (by Colin Sullivan, New York Times)

Minerals Management Service (AllGov)

Federal Energy Regulatory Commission (AllGov)