Australia’s oceans are teeming with renewable energy potential. Around the Southern Ocean, strong winds generate powerful swell waves which lap at the country’s southern coast.
The scale of this potential resource is huge – enough to supply all of our country’s electricity generation – but in 2026, wave activity remains a largely untapped energy source in Australia.
According to researchers, this needs to change.
First – what is wave energy, and how does it work?
Wave energy: teeming with potential
It’s a type of renewable energy source that works by capturing the kinetic and potential energy of waves. Energy is usually generated by harnessing the oscillating motion of the wave to create a mechanical oscillation. This turns a generator and results in a clean, predictable and almost infinite energy source.
A new wave energy modelling study, led by CSIRO and UWA’s Marine Energy Research Australia team, in collaboration with wave energy developer CorPower Ocean, shows that combining wave energy with solar and wind energy sources can dramatically smooth out variability and reduce the need for costly storage.
The study forms part of a broader research effort to build the evidence base for ocean energy in Australia. Previous research has already outlined the opportunity for Australia to lead in this space.
Rethinking wave energy’s role in our energy mix
Wave energy converters (WEC) are used to capture the energy from ocean waves and transform it into electricity. But WECs come at a high front-end cost, which has been a key barrier for wave energy in Australia.
In the study, researchers looked at the potential for wave energy in Albany, Western Australia. The team measured wave conditions offshore across 10 years of data to estimate energy yields from a hypothetical WEC.
They found that wave energy consistently reduced energy storage needs, as compared to other renewables, like solar and wind power.
When this wave energy was included in a hypothetical hybrid network with solar PV and wind turbine generators, they found cost-saving benefits of up to 80% – even despite the higher upfront cost of the technology.
The results are backed by similar findings from 2022 and 2024 feasibility studies which found wave energy, when added to a battery-supported renewable microgrid, could achieve significant decarbonisation benefits.
A missing piece in grid planning
“Wave energy acts like a natural stabiliser,” says the University of Western Australia’s Dr Jana Orszaghova, a researcher on the paper. “Wave energy peaks in the winter when solar energy drops. Our research shows this makes it valuable for balancing supply across the seasons when used in combination with other renewables.”
According to the former Australian Ocean Energy Group’s Stephanie Thornton, a collaborator with UWA, the new study underscores why wave energy should be considered in Australia’s long-term energy planning. Despite Australia’s abundant wave resources, investment and regulatory frameworks have largely overlooked ocean energy — risking the loss of a strategic national advantage.
“As the ocean energy industry matures and demand for this source of energy increases, a ‘market pull’ will emerge,” says Thornton. “With increasing demand for ocean energy by blue economy businesses, communities and industries, those responsible for electricity distribution and corresponding policies will need to proactively adapt grid infrastructure, streamline regulatory frameworks, and incentivise investment to support the integration of this reliable, renewable resource into the broader energy mix.”
From proof of concept to reality
Internationally, commercial demonstration projects are gathering momentum. CorPower’s pilot in Portugal, for example, has shown strong energy yields in real-world ocean conditions and contributed valuable learnings to the sector.
In contrast, Australia’s wave energy industry has seen fewer commercial deployments to date. Recent demonstrations at pre-commercial level, however, are building confidence among research and industry for its potential to reduce the cost of Australia’s energy security.
The M4 Wave Energy Demonstration Project completed a deployment in Albany in Western Australia over the 2024-25 summer. Led by the UWA’s Marine Energy Research Australia (MERA) this open-source, world-first initiative is validating energy yields, informing device design, and showcasing Albany’s potential as a national test site for wave technologies.
“This is an opportunity for Albany to become Australia’s renewable energy capital,” says Dr Wiebke Ebeling, Centre Manager at MERA. “We’re not just testing tech — we’re building local capability, working with the community, and sharing data globally.”
The M4 device features a flexible hinge mechanism that generates electricity from the motion of waves. The project has engaged 6 local contractors and manufacturers, demonstrating wave energy’s potential to stimulate local supply chains, manufacturing, and jobs — particularly in regional and coastal Australia.
UWA’s Dr Hugh Wolgamot, lead researcher on the project, agrees that wave energy’s ability to reduce reliance on batteries and firming infrastructure is a game-changer.
“The M4 Demonstration has already proven our local capability in this field – as well as its potential economic benefits. But further research funding and trials are needed if we are to get wave energy on the menu for Australia’s future energy mix.”
Wolgamot acknowledges social license will need to continue to be developed alongside the technology, as considered effort would be needed to engage with local communities.
The path forward
The research team agrees that there is a strong case to strategically integrate wave energy alongside solar, wind and storage — diversifying the mix, reducing system costs, and ensuring reliability as Australia races toward its 2030 and 2050 climate targets.
What’s needed now is coordination — across government, industry, and energy system operators — to help build social and market acceptance, and to unlock wave energy’s role in a clean, stable energy future.
From a policy and investment perspective, this means:
- Inclusion in system planning (e.g. AEMO ISP and state-level roadmaps),
- Strategic funding for demonstration projects and infrastructure scale-up, and
- Clear regulatory frameworks to support development and reduce project risk.
“We’re building the evidence base now,” says Wolgamot. “But what we need is momentum — for wave energy to be considered essential infrastructure and not just a niche solution.”
More information
Read the latest paper: Osman, P., Orszaghova, J., Wolgamot, H., Hayward, J., Foster, J., Pennock, S., & Hals Todalshaug, J. (2026). South-west Australia’s wave, wind and solar resources – a dispatchable power analysis to demonstrate their potential for improved energy security and reduced capital cost. (Renewable Energy). SSRN.