In 1980, an engineering study prepared by Chas. T. Main in Boston confirmed the technical feasibility of a barrage mode of development for Half-Moon Cove. At the time of the study, the production cost of tidal energy was approximately 0.09 $/kwhr. Due to recent policy decisions, a subsidy is presently available to encourage the development of renewable resources in addition to the ability of taking advantage of carbon credits from large-scale generators of electricity. Based on preliminary data, Tidewalker Engineering has concluded that Half-Moon Cove could generate electricity for less than five cents a kilowatt hours in 2010 which translate into an economically viable project if the energy was sold to the local utility at 0.05 $/kwhr.
In terms of an investment for future returns, tidal energy offers a relatively dependable source of electricity due to the predictability and stability of the tides as a renewable resource. An economic analysis of the life cycle cost of tidal energy when compared to an ever-increasing value for commercial power reveals the attractiveness of this resource as a reliable source of nearly escalation-proof electricity. A tabulation of the results of this analysis based on the listed assumptions indicates that tidal energy will progressively return a greater return with time based on some rather conservative estimates. In reality, the price of electricity has increased approximately 10% per year over the past five years. In our case, the analysis assumes a 10% increase every five years. This favorable economic profile combined with a desire to remove our dependence from fossil fuel translates into a favorable climate for the development of tidal energy. As a footnote, the annual production of tidal energy from Half-Moon Cove represents nearly 800,000 gallons of fossil fuel which would be diverted from the consumption stream by the utilization of this renewable resource.
