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Ocean Energy Technical Pre-Feasibility Study

The pre-feasibility study for Nauru Ocean Energy will collect scientific data to identify the most suitable site for the different ocean energies (wave, tidal or thermal). Then, it will suggest the most appropriate technology to provide both electricity and water security to the island. Particular attention will be given to OTEC technology since it is expected to be the most cost-effective for the Republic of Nauru. This study will provide critical input to a more detailed feasibility study on implementing the pilot projects with the identified technologies under a supporting financial mechanism like GCF. Hence, this study is termed as pre-feasibility study.

To ensure the effective continuation of the work carried out under this technical assistance, the deliverables should be prepared in align with the requirements of the template of the GCF note.


The study under pre-feasibility study will cover following activities:

Activity 1. Technical data collection

This activity covers validation of pre- identified areas based on the existing bathymetry data from 2005 and the deployment of scientific equipment in pre-identified areas. Pressure sensors, current meters, CTD (Conductivity, Temperature, Depth) instruments will be deployed in order to capture the water column temperature and identify the most appropriate technology to develop (wave, tidal or thermal energy) as well as the most appropriate sites. The data will be used as input for the pre-feasibility study that will be finalized in consultation with the communities at the proposed site.


Activity 2. Pre-feasibility study and consultation

The data collected in Activity 1 will be technically analyzed to recommend on the feasibility of the technologies.

This activity will also cover consultations of landowners of the potential project sites as well as consultations of surrounding communities, regarding water and energy benefits of the different technologies (including OTEC) to their daily activities (fishing, agriculture, etc.). Gender issues will be addressed during these consultation processes. Under this activity, a socio-economic analysis, weighing the socio-economic costs against the socio-economic benefits of each ocean energy technology (incl. distributive aspects) will be undertaken. It will also include a financial analysis[1], assessing the viability and profitability of each technology as well as the different financing options. This analysis will also take into consideration environmental impacts of the development of ocean energy technologies.

Activity 3. Green Climate Fund (GCF) draft concept note

Based on the results of the technical, socio-economic and financial analysis, as well as the consultation process, a Green Climate Fund concept note will be drafted in full collaboration with the NDA.


Anticipated products to be delivered by the technical assistance 

  1. Inception Report
  2. Draft pre-feasibility study
  3. Final pre-feasibility study
  4. GCF draft concept note

The pre-feasibility will include a technical assessment of the different ocean energies (with a specific focus on OTEC technology), an environmental and socio-economic assessment, a financial viability assessment, as well as a stakeholders’ analysis.

A GCF draft concept note will be developed, based on the most suitable technology identified for the island.

[1] For instance, by modelling the tariff rates in Power Purchase Agreements for the given technology against the interest rates of the loan and the upfront capital costs to develop a business case that can be used to bring together the development lender, the national government and the private sector companies, within the context of Nauru and its Energy regulation.
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Response project