Oceans hold abundant, largely untapped renewable energy potential that could drive a vigorous global blue economy. A blue economy driven by offshore renewables will bring major benefits to Small Island Developing States (SIDS) and coastal communities. Ocean energy can not only help to decarbonize power generation, provide affordable and reliable access to electricity, help countries to fulfil Paris Agreement pledges and contribute to global climate action. Offshore renewables can help meet energy needs for shipping, cooling and water desalination, laying the foundation for a broad-based blue economy and industry. They create jobs, improve health, strengthen people’s livelihoods and foster wider socioeconomic opportunities for a green recovery from COVID-19.
Ocean energy accounts for approximately 530 megawatts of installed generation capacity globally. Tidal stream and wave projects currently under construction may add another 3 gigawatts (GW) of installed capacity short-term within the next 5 years, most of it in Europe (55%), Asia-Pacific (28%) and the Middle East and Africa (13%). However, with the right incentives and regulatory frameworks in place, IRENA foresees the potential growth of ocean energy up to 10 GW of installed capacity by 2030 globally. Following the steps of wind power and solar PV, innovative offshore renewables have seen huge cost reductions in recent years. Tidal and wave energy already offer a viable alternative for remote diesel-powered island territories with high electricity costs.