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Positional Analysis of Wave Power Examensarbete i Hållbar Utveckling 120 Applied at the Pacific Ocean in Mexico Positional Analysis of Wave Power Applied at the Pacific Ocean Jessica Garcia Teran in Mexico Jessica Garcia Teran Uppsala University, Department of Earth Sciences Master Thesis D, in Sustainable Development, 15 credits Printed at Department of Earth Sciences, Master’s Thesis Geotryckeriet, Uppsala University, Uppsala, 2013. D, 15 credits Examensarbete i Hållbar Utveckling 120 Positional Analysis of Wave Power Applied at the Pacific Ocean in Mexico Jessica Garcia Teran Supervisor: Mats Leijon “The road of life is progressive, ever ascending the infinite hypotenuse of a spiritual triangle, and nothing can obstruct it” Lu Xun Content 1 Introduction .................................................................................................................... 1 2 The wave power technology............................................................................................ 1 2.1 The wave energy converter................................................................................................ 2 2.1.1 The linear generator .......................................................................................................... 2 2.2 The wave power park......................................................................................................... 2 2.2.1 Maintenance....................................................................................................................... 3 2.2.2 Implications........................................................................................................................ 3 2.3 Other WEC technologies................................................................................................... 3 2.4 Physical factors of the WECs ............................................................................................ 3 2.4.1 The degree of utilization.................................................................................................... 4 2.4.2 Wave power density .......................................................................................................... 4 3 Current energy situation ................................................................................................ 5 3.1 Energy in Mexico .............................................................................................................. 5 3.1.1 Clean energy investment and climate financing................................................................ 6 3.1.2 Legal framework..... .......................................................................................................... 6 3.2 Current efforts-from local to worldwide context .............................................................. 7 4 Sustainable energy benefits ............................................................................................ 8 4.1 Clean energy....................................................................................................................... 8 4.2 Energy security................................................................................................................... 8 4.3 Economic development and Innovation ............................................................................. 9 4.4 Ecologically and social benefits.......................................................................................... 9 5 Economic analysis............................................................................................................. 11 5.1 Economic analysis methods................................................................................................ 11 5.1.1 Net present value and internal rate of return....................................................................... 12 5.1.2 Discount rate ....................................................................................................................... 12 5.1.3 Economic strategy................................................................................................................ 12 5.1.4 Electricity price.................................................................................................................... 12 5.2 Economic analysis results.................................................................................................... 13 6 Discussion............................................................................................................................ 14 7 Summary............................................................................................................................. 15 8 Acknowledgement............................................................................................................... 16 9 References........................................................................................................................... 16 Positional analysis of wave power - Applied at the Pacific Ocean in Mexico JESSICA GARCIA TERAN García, J., 2012: Positional analysis of wave power - Applied at the Pacific Ocean in Mexico. Villavägen 16, SE-752 36 Uppsala, Sweden. No. 120, 17 pp., 15 ECTS/hp Abstract: The energy transition has started. The key is to find an alternative to uneconomical and unsustainable energy production. In this sense it is a challenge to develop renewable energy technologies suitable for the present and proper for the future. Uppsala University is driving the Lysekil project at its Division of Electricity. The aim is to design an environmentally friendly energy system with wave energy converters (WECs) that are simple and strong in design. However, little has been done to know more about its economically feasibility and the social impact of its benefits. Therefore, this research focuses on a positional analysis of a 3 MW Wave Power Park to understand the relevant aspects of implementing this kind of technology. The target area will be at Rosarito, Baja California at the Pacific Ocean in the Northeast of Mexico, a region experiencing increasing energy demand. This thesis combines technical, economical and social aspects. The technical part describes how the device works. The analysis is complemented by describing the current energy situation in Mexico and the social benefits of sustainable energy. Finally, the economical analysis is presented, it is focused on the perspective of the Merchant Power Plant. The review shows that wave power could be economically viable due to its high degree of utilisation. Energy diversification and security, economic and sustainable development, and clean energy are some of the advantages of wave power. Therefore, wave power is an interesting alternative for generating electricity in Mexico. However, the energy sector is highly subsidised, making it difficult for new technologies to enter the market without government participation. Another finding is that in the long run if the equipment cost decreases or subsidies are applied, the technology might be successfully implemented. Environmental consequences are described briefly, concluding that little is known and more research is needed. The environmental constraints, economic implications and uncertainties of a high energy future are disturbing. In that sense, renewable energy appears to be unequivocally better than rely to a greater extent on fossil fuels, in the sense that they offer a sustainable development and less environmental damage. Keywords: Economic Analysis; Renewable Energies; Sustainable Development; Wave Energy Converters; Jessica García Terán, Department of Earth Sciences, Uppsala University, Villavägen 16, SE-752 36 Uppsala, Sweden Positional analysis of wave power - Applied at the Pacific Ocean in Mexico JESSICA GARCIA TERAN García, J., 2012: Positional analysis of wave power - Applied at the Pacific Ocean in Mexico. Villavägen 16, SE-752 36 Uppsala, Sweden. No. 120, 17 pp., 15 ECTS/hp Summary: The energy transition has started. The key is to find an alternative to uneconomical and unsustainable energy production. In this sense it is a challenge to develop renewable energy technologies suitable for the present and proper for the future. Uppsala University is driving the Lysekil project at its Division of Electricity. The aim is to design an environmentally friendly energy system with wave energy converters (WECs) that are simple and strong in design. However, little has been done to know more about its economically feasibility and the social impact of its benefits. Therefore, this research focuses on a positional analysis of a 3 MW Wave Power Plant to understand the relevant aspects of implementing this kind of technology. The target area will be at Rosarito, Baja California at the Pacific Ocean in the Northeast of Mexico, a region experiencing increasing energy demand. This thesis combines technical, economical and social aspects. The technical part describes how the device works. The analysis is complemented by describing the current energy situation in Mexico and the social benefits of sustainable energy. Finally, the economical analysis is presented, it is focused on the perspective of the Merchant Power Plant. The review shows that wave power could be economically viable due to its high degree of utilisation. Energy diversification and security, economic and sustainable development and clean energy are some of the advantages of wave power. Therefore, wave power is an interesting alternative for generating electricity in Mexico. However, the energy sector is highly