Tidal Lagoons: Future of UK Energy

Introduction

Tidal energy is generated through three different ways which include tidal lagoons, barrages and tidal streams (O'Doherty & Mason-James, 2018). These technologies are not in any way new. The focus of this research is on tidal lagoons. The other power generation technologies will be reviewed briefly to weigh and establish which among the three would be the most suitable. The Renewables Obligation Scheme has been established in the UK for support of emerging renewable industries. Additionally, the government passed that all projects on tidal energy projects that by 2017 had been installed would be eligible for certificates of Renewable Obligation for a period of five years. Such a type of incentive would with no doubt go a long way in attracting private investors which would guarantee that the UK cemented its position of being a leader in the production of tidal energy in the world. This project seeks to establish why tidal lagoons are the most suitable technologies for generation of power when compared to the other tidal power generation technologies. At all times, the government of the UK needs to pursue such an energy mix that is reflective of its relative priorities for affordability, low carbon and security of supply. That would imply making a decision whether it would be fair and right for consumers of energy to pay for tidal lagoon projects within long timeframes or short time frames would be the most conducive for the achievement of value for money for the consumers. Additionally, scholars often seek environmental studies dissertation help to explore the broader implications of such energy sources.

Tidal lagoons are power stations that generate electricity from the fries and fall of tides that is natural. The working of tidal lagoons is quite similar to the working of tidal barrages as they capture large volumes of water behind structures that are manmade and the water is then released for purposes of electricity generation and driving turbines. However, in contrast to barrages, where the structures span the entire estuaries of rivers in a line that is straight, tidal lagoons enclose n area of a coastline with a tidal range that is high behind a breakwater, with a carefully designed footprint for the local environment. the water is held back as the tide comes in by the turbine wicket gates that are used to control water flow and which could be closed at times to prevent water from getting into the lagoon. That ends up bringing a difference in the level of water between the sea and the inside of the lagoon. The wicket gates are opened once the difference between the levels of water is optimised and water rushes into the lagoon through the bulb turbines which are usually mounted inside turbine housings that are concrete in a section of the breakwater wall. Electricity is generated as the turbine is turned by the water. What then follows is that the water in the lagoon returns to closely match a level that is equal to the sea outside. The reverse of the process also happens as the tide flows out (ebbs) and that is primarily because the nature of the turbines is “bi-directional” and as such, it is possible to generate electricity from both the outgoing and incoming tides.

It is worth noting that the rise and fall of tides is quite natural, with zero requirements for fuel which makes tidal power a renewable energy source. Additionally, in contrast to other renewable energy forms, is predictable entirely. It is quite common to have two low tides and two high tides on a daily periods and as such, generation of electricity by tidal lagoons happens over four periods on a daily basis all through the year. To allow the precise operation of the lagoon, it is possible to predict the height and time of a tide years in advance to a degree of accuracy that is high and that allows for optimisation of the precise operation of the lagoon well in advance.

Operation of tidal lagoons

Single – Basin Operations

Tidal lagoons create a space that is confined that stores a water mass which is released in a controlled manner. Tidal lagoons, in their simplest forms are made up of a single basin, which usually, is created by a seawall. The water passages have turbines whose design is such that they are able to use the blades to convert water to rotational energy. Generators then convert the rotational energy into electric energy. The seawall`s openings house the turbines and the walls are fitted sluice gates that act as control gates and that are used for the regulation of the flow of water in the lagoon and out. The sluice gates are opened whenever the tides are high to allow water to flow inside the lagoon. When the water has entered into the lagoon it spins the turbines in clockwise direction which leads to generation of electric power. This process is known as flow tide generation. The sluice gates are closed once the maximum levels of water inside the lagoons are reached and that brings about an interruption of the flow of water. When the tides are low, the sluice gates are opened which allows water to flow from the lagoon and that in turn, turns spins the turbines counter clockwise in a process known as ebb tide generation. The sluice gates are usually closed when the minimum water levels of the lagoon are reached until such a time when the next tide comes about. The next tide triggers the next cycle of generation.

The potential energy that can be stored in a lagoon is usually, a function of the mass of water and usually is expressed as;

E = 1/2 Aρgh2

A represents the area enclosed by the surface of the walls, is the density of water, g is gravitational acceleration (9.8 m/s2) and h stands for the existing differential height between the levels of water inside of the lagoon and the level of the sea water. That average electric power that the lagoon generates is dependent on the time of generation T and of the energy conservation processes efficiency Cg.

Pav = €g E/T Aρgh2/T

There are several factors that determine the efficiency, €g and these include the losses in energy and the turbines operating points.

Purpose

This project will seek to develop a deeper understanding of tidal lagoons potential for generation of power in the UK while also seeking to develop a strategy that would attract potential investors putting their monies on the project. One distinct advantage that the UK has is that its tidal range resources are among the largest across the globe. Tidal lagoon power stations have the potential of adding into the available range of options for generation of clean electricity and that would go a long way in helping to achieve power sector that is decarbonised and the UK would also be put in a position to capture additional value that is significant from the wider industrial benefits that would be delivered by the sector. It is estimated that the tidal energy resources of the UK are more than 10 gigawatts (GW), which is a representation of up to 50% of the tidal energy capacity of Europe. The tidal energy that is technically harvestable across the globe from those areas that are close to the coast is estimated to stand at 1 terawatts (TW) (Neil et al., 2018).

The world`s nations have been observed to turn towards renewable- energy sources that are low in carbon and that can be replenished on human timescales- to meet their electricity and energy needs (Adib et al., 2015). The 2009 Renewables Directive in Europe set targets that were binding for all the members of the European Union so that by 2020, 20% of energy in the EU would be drawn from sources that were renewable. The government of the UK has a commitment to targets that are legally binding to cut on the emission of carbon by 34 % come 2020 and 80 % by 2050. These targets are set out in the 2008 Climate Change Act (Hammond & Griffin, 2019). To achieve such targets, it would be necessary to generate up to 30% of the electricity in the UK from sources that are renewable by 2020 and by 2050, the sector would be required to be almost entirely free of carbon. To develop a convincing strategy for potential investors, the study will consider the underlying economics that cloud make the use of tidal lagoons for generation of power and further demonstrate how the tidal resources in the UK which are quite substantial could be harnessed by a tidal lagoon industry for generation of electricity for enhancement of the growth of the economy, creation of job opportunities and the reduction of the dependence on fossil fuels that are imported.

The government of the United Kingdom has put in place different measures that are seen to support the sector of renewable energy. Suppliers of electricity are required to purchase specified amounts of that electricity they supply from sources of energy that are renewable. To demonstrate that sources that are renewable have been used, Renewable Obligation Certificates (ROCs) are obtained ("What exactly are ROCs and why is it important for renewable energy generators?", 2019). Additionally, there is also a climate change levy which has been instituted from which exemptions are usually granted through the use of certain renewable technologies. Additionally, there are also capital grants that are available for research and further development of a wider range of renewable energy projects. With no doubt, all these re good incentives that go a long way in the stimulation of investments in renewable energy. Investors, however, always need assurance that such subsidies and incentives wold be available over a larger part of the life cycle of a product and not just trap-in-incentives. That would put those companies involved in the generation of renewable energy in a better position to build strategies that are more viable and stable that would see them take advantage of the available incentives.

The last few decades have seen majority of the western countries changing the energy generation mixes nature shifting to sources of energy that are renewable, from the traditional sources of energy. The oceans are a source of energy which is observed to not have been utilised as extensively as other sources of renewable energy like wind and solar. The UK government commissioned an independent review in 2016 that was aimed at assessing the case for tidal lagoons and whether they could play a role that is cost-effective on the United Kingdom`s energy mix. The reviews results were published in 2016, and one of the major conclusions was that there was a very strong case for s small scale pathfinder project that produced 500 MW and below as soon as it would be reasonably practicable. The Swansea Bay Tidal Lagoon was in the same document indicated as the most likely pathfinder as a result of its advanced state of development and its small size (320 MW). The review further recommended the consideration of other large projects only after the commissioning of the pathfinder and its operation for a reasonable period. There however, exists major concerns related to tidal lagoon projects, with one major concern being related to the environmental impacts of such lagoons on fish movements, habitats, silt deposits and birdlife. Under the UK “Conservation of Habitats and Species Regulations” there is an obligation on the developers of lagoons to implement measures that would reduce disruption during the course of construction to continuously monitor the impacts on the environment and to further provide compensatory habitats that would replace designated features.

Methods

To collect data for this study, descriptive research methods will be used; specifically, survey methods and case-study methods will be applied. The case study method will involve looking into different tidal lagoon projects that have been established in different parts of the world and seeking to establish their viability. The tidal lagoons that will be explored here include; Swansea Bay, Colwyn Bay and Bridgwater Bay. Often, case studies lead to hypotheses that are testable (Hancock, & Algozzine, 2016). The survey methods will involve administration of interviews to engineers to develop a better understanding of tidal lagoons, especially, to understand their economic viability. Before the onset of the interviews, the researcher will first have to think out carefully of the questions that they will intend to ask in the course of the interviews and plan the questions properly to avoid repeating oneself and also to ensure that the questions are clear and easy to comprehend for the participants (Nardi, 2018). While questionnaires could also have been used, interviews are more appropriate for collection of in-depth data as the researcher can always deeply engage the participant on different issues. The researcher will then describe the responses of the participants.

A PEST and Porter`s Five Force Analysis will also be conducted on the renewable energy resources of the UK to establish the viability of tidal lagoons. PEST Analysis a tool that is used quite widely does an analysis of the Political, Economic, Socio-Cultural and Technological changes in a businesses` environment. Conducting a PEST analysis helped the researcher to build a bigger picture of the forces of change that the establishment of a tidal lagoon would be exposed to, and from that, take advantage of the presented opportunities. Generally, there are four main reasons why PEST analysis is useful and these include;

1. Helps in spotting personal and business opportunities and would provide advanced warnings of threats that are significant.

2. Reveals a business environments change of direction. That would be helpful in shaping what is being done, so that later on the developers of tidal lagoons would be able to work with change and not against it.

3. It helps to prevent kick-starting projects that have a high failure likelihood.

4. It can be helpful for breaking free of assumptions that are unconscious because it helps build a view that is objective of any environment.

PESTLE Analysis

In this research, the following steps were followed in analysis of the tidal lagoon business environment and the opportunities and threats it presents;

1. Use of PESTLE analysis to brainstorm the changes happening around the UK environment.

2. Brainstorming of the different opportunities that arise from the different changes,

3. Brainstorming issues and threats that could be brought about by them.

4. Taking actions that are appropriate.

Political factors

In brainstorming the political factors, the researcher put into consideration the following factors;

1. Is there any likelihood that certain political factors would change?

2. Could an investment in a tidal lagoon project be affected by any pending legislation or taxation change?

3. Does the government support an initiative of this kind? What approach does the government follow for environmental issues, corporate social responsibility and corporate policy?

4. The level of development of the rule of law in the UK and the spread of organised crime and corruption across the United Kingdom.

Britain has regularly been scoring highly as a country that is free of corruption previously ranking 8 to 10 in corruption perceptions out of 176 covered states across the globe. Additionally anti-corruption activists and organised networks for open governments have been pushing even more reforms. This is quite encouraging for any potential investor because the existence of corruption reduces the credibility of businesses. Whenever a business’s resources are tampered with, the efficiency of the business to turn the resources into profits would definitely be reduced. Corruptions effect on an investment would be such that the business now had fewer resources which would not be adequately sufficient for the effective running of the business and for the business to maintain its operation levels. The government of the UK hugely supports the renewable energy sector as a result of the continued efforts to solve the issue of global warming. The Government of the United Kingdom takes a role that is prominent in the mitigation of the effects of climate change through the reduction of the emission of carbon gas. By 2020, the government of UK aims to reduce carbon emissions through expansion of the sources of renewable energy (Masden et al., 2015).

There are several government initiatives and legislation that have been put in place to ensure the reduced carbon emissions and these include; The Climate Change Act of 2008 which is a commitment to cut on the greenhouse gas emissions of the UK by up to 80% below the levels that were witnessed in the 1990s come 2050, the 2008 Energy Act amd the Renewable Obligation. Suppliers of electricity are required by the renewable obligation to supply a specified amount of electricity from that are renewable. Such incentives are with no doubt vital for long term strategic plans and have succeeded in creating an atmosphere that is favourable together with opportunities for investment in the sector. The political imperative towards the introduction of incentives that are both regulatory and fiscal will with no doubt create opportunities for different investors.

Economic factors

In brainstorming the economic factors, the following factors were put into consideration;

1. Stability of the current economy. Is it declining, stagnating or growing?

2. Are the disposable incomes of the consumers of energy falling or rising? In the future, what is the likelihood that this would change?

3. What are the rates of unemployment? Would it be easy to build a workforce that is properly skilled?

There was an annual increase in the GDP from2018 into the first quarter of 2019 ("United Kingdom", 2019) and that has ensured that the demand for renewable energy is stable. It is further expected that the demand or renewable energy would continue to increase over the years as there are numerous incentives that have been put in place by the UK government which are aimed at ensuring that the goals of the UK renewable energy sector are achieved. These incentives would ensure that there would be enough renewable energy come 2020 to supply the equivalent of up to 26 million homes across the UK with their electricity demands and up to 4 million homes with their heating needs. Sustenance of technological and infrastructural development over a period of time would eventually bring about economies of scale in terms of reduced energy costs. That would definitely improve renewable energy`s competitive strength. The unemployment rate in the UK came in at 3.8% in the three months to April 2019 which is a quite low rate of unemployment. What this implies is that most of the people have a job. Any company that seeks to invest in construction of a tidal lagoon for generation of electricity would have to consider sourcing a good number of employees from foreign countries to fill different skilled engineering roles.

Social and Environmental factors

This part explored;

1. The population of the United Kingdom.

2. The social attitudes that could impact an investment in tidal lagoons.

Renewable energy is widely considered as a solution to the world’s wider environmental concerns. Renewable energy`s success as an alternative source of energy that is friendly is from time to time questioned by its sustainability and scope as such, there has been more pressure on companies that produce renewable energy to deliver sustainability agendas that are effective. There definitely will be an increasing focus on the sustainability credentials of renewable energy as it continues to become an increasingly large part of the energy equation. For companies involved in renewable energy, the implication of this is that theywould have to undertake thorough social and environmental assessments that would see sustainability embedded into their overall corporate strategies and supply chain so that the reputation of their industry can be sustained. It could be conferred that increased social and sustainability responsibilities would bring about an increment in the costs of renewable energy. The electric utility week did a survey in 2010 which established that high costs of various energy forms were the single most energy problems that faced consumers.

The difficulties associated obtaining planning permission is one social factor that militates the development of renewable energy projects. That has been borne out of the fear of change and absence of appreciation of the benefits communities could reap from renewable energy (Mirzania et al., 2019). The UK has a large population and which has been observed to grow over the years which is quite favourable for the future and current prospects of the tidal energy supply. A regions population and its composition, distribution and growth trends is an environmental factor that plays a role that is quite key in the designing of corporate strategies that are effective over a relatively long period of time. Recruitment policies are promoted by an understanding of the population dynamics in which corporate organisations operate in and that provides an enhanced understanding of the demand for the products and proper market segmentation. With a favourable population growth, companies will be able to expand their market share and that will have a positive impact on the bottom line of any organisation. It is however, worth noting that a growing population could also present a challenge for the industry to continue providing proper services as it aims to minimise carbon emissions.

Technological factors

This section explored whether there were new technologies on the horizon that had the capability of radically affecting the operations of tidal lagoons. The main challenges in the development of technologies that have the capabilities of harnessing ocean energy include; the extremely high upfront costs, the high maintenance costs required, the concerns that are related to the impacts of tidal lagoons on marine environments and the availability of energy sources that are cheaper. The increased demand for different forms of renewable energy has generated a need for people with skills that are appropriate. The renewable energy sector in the UK is a world class industry and that requires a skill base that is properly established for purposes of supporting its expansion. From this analysis, it is quite clear that renewable energy is a sector of the energy industry which is observed to grow continuously with numerous potentials for development into a key energy sector.

United Kingdom`s Renewable Energy Sector Porter`s Five Force Analysis

The Porter`s Five Forces model was used to do an analysis of different competitive forces that could shape the renewable energy industry. The use of tidal lagoons in the UK for generation of power is still minimal and that is why this section focused on the entire renewable energy sector. Through the analysis, it was possible to identify the strengths of the industry and its weaknesses.

Competitive rivalry

There is intense rivalry in the energy sector of the UK as a result of the many multinational energy companies present. Notable companies include; BP Plc., EDF Plc., Centrica Plc., Royal Dutch Shell Plc. among many others. All these are companies with extensive strengths financially, employ first class man power and employ the latest technologies (Hall & Buckley, 2016). Additionally, new entrants into refinery of Oils and Gases brings about nw innovations and even new ways of doing things which put intensive pressure on the renewable energy sector. These new entrants introduce lower pricing strategies which reduce costs and provide new value prepositions to customers. It would be necessary to manage all these challenges and further build barriers that are effective for purposes of safeguarding the competitive edge of tidal energy.

Threat of New Entrants in the Energy sector

The UK offers different incentives in terms of subsidies and tax credit which would definitely woo potential investors into investing in their renewable energy sector (Cowell et al., 2017). Generally, however, the threat of new entrants is quite moderate because of a number of factors; Low switching costs- the end user switching costs are quite low which goes a long way in increasing the opportunities for any potential new entrants. Undifferentiated product – it is worth noting that electricity is not differentiable and the users have incentives to switch to the low cost suppliers. That goes a long way in increasing the opportunities for new entrants who are efficient.

Threat of substitutes

This threats are relatively high as a result of the many different alternate sources of energy which include wind, solar, biomass and hydro.

Bargaining power of Buyers and suppliers

The bargaining power of suppliers and buyers is high relatively as a result of the lack of information among buyers and lack of product choice. There also is a small number of suppliers of renewable energy.

SWOT Analysis

Strengths

Renewable energy is an option that is both viable and feasible for the reduction of carbon emissions. Global warming is one of the largest challenges facing the world and it is brought about by emission of carbon gas from conventional fossil fuels. Tidal energy is a source of energy that is renewable. The source of energy is a result of the sun and moons gravitational fields which are combined with the rotation of the earth round its axis bringing about, low and high tides. The difference in potential energy, is usually the source of generation of power from tidal energy.

Tidal power is also friendly to the environment. In addition to being energy that is renewable, it does not take up a lot of space and neither does it emit any climate gases. There are however, rather few examples from actual tidal power plants and the effects they have on the environment and it would thus be important to do an assessment of such things. Tidal currents are also highly predictable and that is because the development of high and low tides happens in cycles that are well known. That makes it rather easy to construct systems with appropriate dimensions since it is already known the kind of power equipment would be exposed to. Also, the density of water is up to 1000 times higher than the density of air. This makes it possible to generate electricity at rather low speeds.

Finally, there are currently no reasons to doubt the longevity of tidal power plants. Their long life spans would definitely cut on the costs that the power plants sold their electricity which would go a long way in increasing the cost-effectiveness of tidal energy.

Weaknesses

Substantial amounts of capital are required in the development of large scale renewable energy plants. It also has been established that in the short run, when compared to conventional sources of energy, renewable energy is more expensive. What that implies from a business perspective is that in the short run, the profitability of an investment in renewable energy would be affected. There is low product differentiation in the energy sector which makes consumers to go for the cheapest sources of energy.

Dig deeper into Driving Success through Synergy with our selection of articles.

Opportunities

The political structure of the UK is quite stable and is characterised by high infrastructural and technological development. As such, the economy has the capabilities of developing expertise that is extensive in a wide range of renewable technologies which include installation, manufacture and research. The UK has numerous universities with world class manpower and facilities which could be channelled towards the development of first class technologies of renewable energy that would go a long way in promotion of the efficiency of the industry generally.

Threats

The proposed plans of replacement of the old nuclear power stations in the UK with new and advanced power stations with extremely low carbon emissions pose threats that are quite serious to renewable energy`s future and to the future of a tidal lagoon rpoject.

References

Adib, R., Murdock, H. E., Appavou, F., Brown, A., Epp, B., Leidreiter, A., & Farrell, T. C. (2015). Renewables 2015 global status report. Paris: REN21 Secretariat.

Cowell, R., Ellis, G., Sherry-Brennan, F., Strachan, P. A., & Toke, D. (2017). Rescaling the governance of renewable energy: Lessons from the UK devolution experience. Journal of environmental policy & planning, 19(5), 480-502.

Griffin, P. W., & Hammond, G. P. (2019). Industrial energy use and carbon emissions reduction in the iron and steel sector: A UK perspective. Applied Energy, 249, 109-125.

Hancock, D. R., & Algozzine, B. (2016). Doing case study research: A practical guide for beginning researchers. Teachers College Press.

Masden, E. A., McCluskie, A., Owen, E., & Langston, R. H. (2015). Renewable energy developments in an uncertain world: the case of offshore wind and birds in the UK. Marine Policy, 51, 169-172.

Mirzania, P., Ford, A., Andrews, D., Ofori, G., & Maidment, G. (2019). The impact of policy changes: The opportunities of Community Renewable Energy projects in the UK and the barriers they face. Energy Policy, 129, 1282-1296.

Nardi, P. M. (2018). Doing survey research: A guide to quantitative methods. Routledge.

Neill, S. P., Angeloudis, A., Robins, P. E., Walkington, I., Ward, S. L., Masters, I., ... & Aggidis, G. (2018). Tidal range energy resource and optimization–Past perspectives and future challenges. Renewable energy, 127, 763-778.

O'Doherty, T., O'Doherty, D. M., & Mason‐Jones, A. (2018). Tidal Energy Technology. Wave and Tidal Energy, 105-150.

Waters, S., & Aggidis, G. (2016). Tidal range technologies and state of the art in review. Renewable and Sustainable Energy Reviews, 59, 514-529.