Explore the cost of wave energy. How much does it cost to build and run a wave farm? How does it compare to wind and solar? A clear economics guide.
Wave energy has great potential, but it comes with a price tag. Right now it costs more than wind or solar power. Here is the short version:
The cost of wave energy includes several parts.
Building the device is the biggest cost. Wave energy converters use strong materials like steel and special composites. They must survive decades of saltwater, storms, and constant movement. This makes them expensive to manufacture.
Installing the device at sea is also costly. You need ships, cranes, and skilled crews. Working in the ocean is harder and slower than working on land. Bad weather can delay installation for days or weeks.
Connecting to the grid requires underwater cables. These cables carry electricity from the wave farm to the shore. Laying cables on the seafloor is expensive. Long cables cost more than short ones.
Maintaining the devices adds ongoing cost. Saltwater corrodes metal parts. Storms can damage equipment. Marine growth like barnacles can clog moving parts. Periodic inspections and repairs are needed.
Decommissioning is the cost of removing devices at the end of their life. Devices must be taken out of the ocean and disposed of or recycled.
The most common way to measure energy cost is the levelized cost of energy or LCOE. This includes everything: building, fuel, maintenance, and operation over the plant’s lifetime.
Current LCOE estimates for wave energy:
For comparison:
Wave energy is more expensive than wind and solar today. But it is already competitive with some fossil fuels in certain locations.
There are several reasons wave energy costs more than other renewables.
Newer technology. Wind and solar have been developed for decades. Wave energy is still in its early stages. Fewer devices have been built and tested. The industry has not yet found the best design.
Small scale. Mass production brings costs down. But there are not enough wave farms yet to support mass production. Each device is still mostly custom-built.
Harsh environment. The ocean is one of the toughest places to work. Waves, storms, salt, and marine life all test the equipment. Devices need extra strength and protection.
Difficult access. If a wind turbine breaks, a technician can climb up to fix it. If a wave device breaks, you need a boat or a diver. Repairs at sea are slower and more expensive.
The wave energy industry has a clear path to lower costs.
Larger scale. Building more wave farms will allow manufacturers to produce devices in larger numbers. Mass production could cut costs by 30 to 50 percent.
Better materials. New materials that resist corrosion and fatigue will make devices last longer. Longer life means lower cost per year of operation.
Smarter designs. Improved control systems can help devices capture more energy from the same waves. More energy per device lowers the cost of each kilowatt-hour.
Shared infrastructure. Wave farms can share underwater cables and grid connections. This spreads the cost across multiple devices.
Learning from experience. Every new wave farm teaches engineers what works and what does not. Lessons learned lead to better, cheaper designs.
Cost is not the only factor. Wave energy has advantages that other sources do not.
Predictability. Wave energy can be forecast days ahead. This helps grid operators plan. Wind and solar are harder to predict.
Consistency. Waves run day and night. Solar only works during daylight. Wind is intermittent.
Density. Wave energy has higher power density than wind or solar. A wave farm can produce more power per square mile.
Location. Wave farms are offshore. They do not take up land that could be used for farming or housing.
These advantages mean wave energy could be valuable even if it costs slightly more than other renewables.
Think about building a sandcastle. A simple sandcastle is easy. But if you want it to survive the waves, you need stronger walls and special tools. That costs more time and effort.
Wave energy devices are like that. They have to be really tough. The ocean is powerful. Storms can be dangerous. Building something that lasts in the ocean is expensive.
Now think about a toy you buy at the store. If only a few people buy it, the toy is expensive. If millions buy it, the price drops. Wave energy is like the expensive toy right now. Not many people are buying it yet. But as more wave farms get built, the price will come down.
Let us look at the economics in more detail.
Capital expenditure or CAPEX includes the cost of designing, building, and installing the devices. This makes up 60 to 80 percent of the total cost. CAPEX is high because each device is still expensive to build.
Operational expenditure or OPEX includes maintenance, repairs, and insurance. This is 20 to 40 percent of the total cost. OPEX is expected to drop as devices become more reliable.
Learning rate measures how much costs drop each time production doubles. The learning rate for offshore wind is about 10 to 15 percent. Wave energy is expected to follow a similar or steeper curve.
Discount rate affects LCOE because wave projects have high upfront costs and long lifetimes. A lower discount rate makes wave energy more attractive.
Pelamis, Portugal. Each Pelamis device cost around 6.6 million dollars. Three devices made up the Aguçadoura Wave Farm. The total project cost was over 20 million dollars.
CETO, Australia. The CETO system has lower installation costs because it sits underwater. It avoids some of the storm damage that surface devices face.
Mutriku, Spain. This oscillating water column was built into a breakwater. Sharing the structure with coastal protection lowered the cost significantly.
These examples show that costs vary by design and location.
Research the cost of electricity in your area. Compare it to the cost of wave energy. Calculate how much more a household would pay if all its electricity came from wave power. Discuss whether the benefits of clean energy are worth the extra cost.
Last updated: June 15, 2026
What is the estimated cost range for wave energy per kilowatt-hour?
Why are wave energy devices expensive to build?
What is LCOE short for?
How does wave energy cost compare to onshore wind?
What could help lower the cost of wave energy?
Answers: B: 4 to 10 cents, B: They must survive storms, saltwater, and constant motion, B: Levelized Cost of Energy, C: Wave energy is more expensive, B: Mass production of devices
How much does wave energy cost per kilowatt-hour?
Current estimates put wave energy between 4 and 10 cents per kilowatt-hour. This depends on the location and the type of device. Costs are higher than wind and solar right now but are expected to fall.
Why is wave energy more expensive than wind or solar?
Wave energy is newer. Fewer devices have been built so manufacturing is not yet at large scale. Devices must also survive storms, saltwater, and constant motion. That requires strong materials and careful engineering, which adds cost.
How much does a single wave energy device cost?
Costs vary widely by design. A single Pelamis attenuator was estimated to cost around 6.6 million dollars. Smaller devices cost less. As the industry grows, prices are expected to come down through mass production.
What is the levelized cost of energy for wave power?
The levelized cost of energy or LCOE for wave power is currently 4 to 10 cents per kilowatt-hour. LCOE includes construction, fuel, maintenance, and operation over the lifetime of the plant. For comparison, onshore wind is 2 to 4 cents and solar is 3 to 5 cents.
When will wave energy become affordable?
Experts predict wave energy could become competitive with wind and solar within 10 to 15 years. This depends on continued research, more wave farms, and better manufacturing. Costs have already fallen significantly in the last decade.
