California utility aims to give wave power a try

SAN FRANCISCO, April 13 (Reuters) - California's PG&E Corp's (PCG.N) is seeking a federal license for a wave power project, an ambitious form of clean energy that faces technology hurdles and now opposition from fishermen.

The project, which could power a few thousand homes, would anchor about three nautical miles off the coast of Eureka in Northern California and cost more than $50 million to build, according to an application filed with the Federal Energy Regulatory Commission.

The project would allow PG&E's Pacific Gas & Electric utility to test a set of emerging technologies that use the motion of waves to drive a generator and produce electricity. More than a dozen wave power companies have contacted PG&E. (See: here)

Power from waves, plentiful and inexhaustible, is gaining government and private support thanks to policies that aim to curb climate change by promoting renewable energy production.

But so far no commercial ocean wave energy farms exist in the United States or Europe because of technical and financial challenges, said Peter Asmus, a senior analyst at Pike Research.

California has set a goal of getting 33 percent of electricity from renewable sources by 2020.

"There is a large potential for renewable energy off the coast of California. It could be a huge benefit to our customers," said Jana Morris, a PG&E spokeswoman.

PG&E expects to receive a license by June 2011, she said.

CRABS VS. CLEAN POWER

But the five-megawatt project, enough to supply electricity to about 3,750 homes, is running into opposition from fishermen who worry about loss of income and the safety of their gear.

Aside from losing a piece of Dungeness crab fishing ground, fishermen are concerned about the crab pots they place nearby, said Kevin Pinto, a commercial fisherman.

"We definitely need some ways to compensate for a loss of gear. There will be a lot of traffic going through the project site," said Pinto, adding that local fishermen have hired an attorney to negotiate with PG&E.

PG&E hasn't determined total costs of building and operating the project. It expects to spend about $50 million to build the infrastructure for power transmission, monitoring and other equipment, but the figure doesn't include the cost of the wave energy converters.

PG&E plans to work with three or four device manufacturers and make its selection by the end of the year, Morris said.

The operation and maintenance cost of the project would be $5 million annually, PG&E said. This figure excludes the cost of carrying out environmental protection measures, which are under development. (Reporting by Ucilia Wang; Editing by Peter Henderson and Steve Orlofsky)