The ocean is one of the planet’s biggest untapped energy resources.

When we think of renewable energy, marine energy might not be the first things that come to mind. Yet the immense power coursing through our oceans represents a vast clean energy opportunity. Ocean energy (also called marine energy) refers to technologies that harness renewable power from the sea – including waves, tidal movements, ocean currents, and even thermal or salinity gradients. In an era striving for net-zero emissions, could the sea itself be a major power plant? Let’s dive into what ocean energy is all about, why it’s generating fresh interest among innovators and investors, and how it might shape the future of energy.

Why the Ocean Is a Renewable Powerhouse

Global map of wave energy resource (energy flux in kW per meter of wave front). Coastal regions with strong winds and large swells – shown in red – hold especially high wave power potential. Source: Wikipedia

The sheer scale of energy available in our oceans is hard to fathom. Consider these eye-opening facts:

1. Immense Theoretical Potential: Studies estimate that ocean waves could deliver around 29,500 terawatt-hours of electricity per year – that’s more than the world’s total annual electricity consumption. In the U.S., the waves just off the West and East Coasts contain an energy potential equivalent to over 60% of America’s electricity generatione360.yale.edu. Australia’s wave resource is similarly huge – over 1,300 TWh per year, about 5× Australia’s energy needs. In short, the resource is abundant virtually wherever coastlines meet open oceans.

2. Energy Density & Consistency: Water is ~800 times denser than air, so marine turbines can capture more energy than wind turbines of the same size. Waves and tides pack a punch – for example, 1 meter of wave front in a good location carries 2–30+ kW of power. And unlike sunshine or wind, ocean forces don’t sleep: tides are clockwork-predictable and waves keep rolling all day and night. This around-the-clock availability (see map above) makes ocean energy a promising source of base-load or dispatchable renewable power to bolster grid reliability.

3. Proximity to Demand Centers: Nearly 40% of the world’s population lives within 100 km of a coast, and many major cities sit near the sea. Ocean energy devices can be deployed off coastlines, potentially supplying power close to where people live without requiring vast land areas. This could reduce transmission needs and integrate well with coastal grids (for example, island communities or remote coastal regions could become more energy self-sufficient with local wave/tidal projects).

4. Complementary to Wind & Solar: A common question is, why invest in wave or tidal energy if we have cheap solar and wind? The answer is that it’s not wave instead of solar, it’s wave and solar. Marine energy can fill gaps – for instance, waves often remain strong at night when solar panels stop producing. Utilizing diverse renewables (solar, wind, hydro, and ocean) creates a more resilient overall energy system. As one expert puts it, the value of ocean energy is in its “persistence” – it can quietly work in the background to keep the lights on when other sources ebb.

5. Climate and Economic Benefits: Expanding ocean energy isn’t just about kilowatts – it’s also an economic opportunity. A recent international roadmap envisions reaching 300 GW of global ocean energy capacity by 2050, which could create an estimated 680,000 jobs and add $340 billion in gross value to the economy, while avoiding over 500 million tonnes of CO₂ emissions. That’s a powerful argument for countries to support this industry: it promises not only clean energy but also industrial development (manufacturing, maritime jobs) and climate gains.

In short, the ocean offers a huge, untapped renewable resource that is energy-dense, continuous, and sitting at our doorstep. No wonder many call it the next frontier for clean energy innovation.

Ocean Energy’s Status Today: Small Start, Big Momentum

If ocean energy is so promising, where are we today? The reality is that marine energy is still in its early days– but momentum is building fast as technology improves and investment flows in:

• Tiny Current Footprint: At present, ocean energy contributes only a fraction of a percent to global power. In 2020, all the world’s wave and tidal projects combined produced a mere 0.2% of renewable electricity. The entire installed ocean power capacity is estimated around 513 MW as of 2023 – equivalent to just a few large wind turbines. And tellingly, about 96% of that is from two legacy tidal barrages built decades ago. In other words, modern wave and tidal stream technologies are just now moving from prototypes to pilot farms.

• Proven Demonstrations: On the positive side, recent projects have proven that marine energy works in real conditions. In Europe, pioneering tidal stream arrays like Scotland’s MeyGen have been feeding power to the grid for years, and by 2023 European tidal pilots cumulatively produced over 93 GWh of electricity One device – the Orbital O2 floating turbine in Orkney, Scotland – is currently the world’s most powerful tidal turbine at 2 MW. It’s capable of powering about 2,000 homes and offsetting 2,200 tons of CO₂ annually. The O2’s successful deployment (see image below) shows that cutting-edge designs can survive harsh seas and deliver reliable output. On the wave side, dozens of prototypes (point absorbers, oscillating water columns, etc.) have been tested at sites like the European Marine Energy Centre (EMEC) in Scotland and a new PacWave testing facility in Oregon (USA) slated to open in 2026. These facilities are helping engineers refine designs and drive costs down.

Scotland’s Orbital O2, a 2 MW floating tidal turbine, in the waters off Orkney. This single device can generate enough electricity for ~2,000 homes and is anchored in a fast tidal channel, with underwater rotors capturing energy from the ebb and flow.

• Surging Investment and Policy Support: After a stop-and-start history, marine energy is now benefiting from stronger policy and investment tailwinds. For instance, the U.S. Department of Energy announced a record $110+ million funding package in 2023 for wave energy prototypes and research – the largest U.S. investment in the sector to date. The U.K. government recently ring-fenced £20 millionper year in its renewable auctions specifically to support tidal stream projects, resulting in **53 MW of tidal projects winning contracts in 2023** – a big vote of confidence in this maturing sector. Meanwhile, the European Union set ambitious goals for ocean energy as part of its Offshore Renewable Strategy: targeting 100 MW of ocean projects by 2025, 1 GW by 2030, and 40 GW by 2050. These targets, paired with dedicated EU funding for R&D and commercialization, are giving the industry the long-term visibility it needs to scale up. As a result, private investors are beginning to take note – from utilities partnering on pilot farms to venture capital backing startups with promising new converters.

• Market Growth Trajectory: Analysts foresee hockey-stick growth for marine energy over the next decade. The global wave and tidal energy market, valued at under $1 billion in 2023, is projected to soar to nearly $20 billion by 2032 (a whopping ~40% annual growth rate). Similarly, the International Energy Agency’s net-zero scenario estimates marine energy could grow 60-fold by 2050 – still a small slice of the total energy pie, but one of the fastest-growing areas. The stage we’re in now for ocean energy is often compared to where wind and solar were a few decades ago: the innovators and early adopters are proving the tech, costs are high but dropping, and supportive policies are catalyzing the first wave of commercial projects. The coming 5-10 years are crucial to move from one-off demos to full arrays feeding significant power into grids.

Challenges on the Horizon (and Why They’re Solvable)

No energy source is without hurdles, and ocean energy has some tough challenges to overcome before it can truly go mainstream. Here are the key challenges – and how the industry is addressing them:

• Engineering for Harsh Environments: The ocean can be a punishing place for machinery – corrosion, powerful waves, storms, and biofouling (marine growth) all threaten equipment. Early wave devices sometimes failed spectacularly when seas turned violent. To tackle this, engineers are using advanced materials (corrosion-resistant coatings, composites), designing submersible parts to withstand pressures, and testing systems in incrementally rougher conditions. For example, devices like the Wello “Penguin” (a rotating barge) showed that simplifying moving parts in contact with water can improve survivability. Modern turbines like Orbital O2 have storm-mode settings (rotors that can fold up or submerge during extreme weather). Over time, this hard-won experience is yielding more rugged, reliable machines purpose-built for the sea.

• Higher Costs (Today): At the moment, marine energy costs more per kWh than wind or solar. The prototypes are basically hand-built and not yet mass-produced, and deploying equipment at sea requires specialized ships and crews. However, as designs are refined and volumes increase, costs are expected to plummet – much as offshore wind saw huge cost declines over the last 10 years with larger turbines and volume manufacturing. Industry targets often talk of wave/tidal eventually hitting ~$0.10 per kWh or lower, competitive with other renewables. Public funding and incentives are crucial now to bridge this gap. The good news: every new project is bringing costs down through lessons learned, and there’s a clear path of learning-by-doing. Accelerating innovation (through R&D programs and test centers) plus smart market support (e.g. feed-in tariffs or contracts for difference for tidal/wave power) can drive the cost curve to where private finance pours in at scale.

• Regulatory and Environmental Hurdles: Ocean projects face a maze of permitting – multiple agencies, environmental impact studies, and sometimes local opposition. Concerns include potential harm to marine life (e.g. could a fish or marine mammal collide with a tidal turbine blade?). So far, studies have been reassuring: a monitoring report in Canada’s Bay of Fundy found no significant impacts on marine life from a deployed tidal turbine, and measures like slow-turning blades and acoustic deterrents can mitigate risks. Regulators are increasingly working with developers on streamlined permitting for pilots, recognizing that overly cumbersome processes could stifle this young industry. Clear marine spatial planning (designating areas for offshore renewables) and updated rules that support demonstration projects are making it easier to get devices in the water. As more data is gathered from real deployments, a balanced approach can ensure ocean energy grows in harmony with marine ecosystems.

• Scaling Up Manufacturing and Infrastructure: To hit the ambitious targets (like 40 GW by 2050 in the EU), the sector will need a robust supply chain – from factories building turbines and wave devices, to installation vessels, to subsea cables and grid hookups. This is both a challenge and an opportunity: it requires coordination and investment, but it can also create new industries. Ports may need upgrades to handle large marine energy components; coastal communities could host assembly facilities and maintenance hubs. Governments are starting to plan for this, for example by funding port infrastructure improvements and training programs for the “blue economy” workforce. The positive implication is that many of the skills are transferable from offshore oil & gas and wind industries (marine construction, electrical engineering, etc.), easing the transition. With targeted support, scaling up is feasible – and initiatives are already underway to map out the industrial needs for a marine energy boom.

In summary, while ocean energy faces real challenges, none appear insurmountable. Through clever engineering, policy support, and the same kind of learning curve that other renewables have ridden, marine energy is steadily charting a path from experimental to essential.

Riding the Next Wave: What’s Ahead for Marine Energy

Ocean energy is still small, but momentum is building. In the coming years, expect to see larger pilot farms, like multi-turbine tidal arrays in Scotland, France, and Canada, and wave projects in Portugal or Australia. These will test whether success can be scaled, especially in countries rich in marine resources like the UK, EU, Canada, U.S., Australia, China, and South Korea.

Crucially, ocean energy isn’t meant to replace wind or solar – it complements them. Experts say we need all the levers to reach net-zero: sun, wind, and waves. Thanks to its predictability and round-the-clock nature, marine energy can boost grid stability and energy security. Hybrid plants—offshore wind farms with wave devices—are already being tested.

Investment is also heating up. With global projections of 300 GW by 2050, ocean energy is becoming a serious clean infrastructure opportunity. Forward-looking investors and utilities are backing early-stage tech, aiming to lead in a growing global market.

In short, the ocean could be the next big renewable power source. As wave and tidal tech matures, the next decade will be key in turning promise into reality—and it’s a bet worth making.

Ready to catch the wave of innovation? At Penomo, we’re enabling this shift.

About Penomo

Penomo is a digital asset infrastructure platform specializing in tokenized energy and AI infrastructure financing. By transforming physical infrastructure into compliant digital securities, we connect private capital markets with institutional-grade renewable energy and AI investments. Through tokenization, Penomo is streamlining capital access, enhancing liquidity, and enabling efficient financing for the global energy transition and AI expansion.

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