The economic analysis of the production of electricity on a significant national scale from wave energy reported in ETSU's Strategic Review of the Renewable Energy Technologies showed that in 1982 it was una ttractive when compared with compet ing technol ogies , Subsequent analysis has refined our under standing of wave energy ecor, omics while confirming the findings of the Strategic Review. The Harwell electricity supply system model has been used to recalculate breakeven costs, net present values and benefit/cost rat ios in the s ame scenarios as used in the Strategic Review. Attention was focused on a 2 G1~ wave power station with an assumed annual l oad factor of 25% instal led between 2001 and 2010 with a life of 25 years. ~uch of t he analysis was carried out for this first wave ?Ower stati on but the sensitivities to the main assumptions and the economics of subsequent wave power stations ~ere considered. This mo re recent economic analysis shows that while wave energy can appear cost-effective under particularly favourable scenarios u sing optimistic assum p tions on costs a nd productivity, its overall economic prospects a re not go od. The analysis ~erely serves to strengthen the conclusion of the Strate g ic Review of the Renewable Energy Technologies that the economic prospects of wave energy are poor both in comparison with othe r renewable energ y technologies a nd with conventional thermal plant. This suggest s tha t wave powe r is only likely to be considered by a UK electricity board as som e form o f s trategic opti on which cou ld be relie d upon if other more ec onor:ii cally att ractive generation options became unavailable fo r non-economic reasons. Its deploynent would increase costs to the consumer in a ll scenarios considered
