It is interesting to note that Scotland, home of the Pelamis, seems to be going for tidal energy in a big way having an excellent tidal resource.

http://news.scotsman.com/edinburgh/Salmond-hails-Pentland-Firth-Europe39...

I suspect that running the figures for tidal would produce a much more favorable result.

The target in Scotland is 3GW of installed wave and tidal capacity by 2020. That's about 50% - 60% of Scotland's electricity requirement.

Listen to Professor Ian Bryden (University of Edinburgh) talk about this at (6 minutes in)

http://www.youtube.com/watch?v=ffAcqzDi0mE

and

http://www.youtube.com/watch?v=DBlrT9xNers&feature=related

Scotland is to marine and wind renewable energy what Saudi Arabia is (was?) to oil. Apparently.

Location, location, location.

There are a handful of places, mainly Britain, Hawaii and Australia, where there's a lot of wave power. Like Iceland's geothermal, it's a specialized niche. So it will be hard to get enough capital to bring down costs. But Britain really needs the juice right now so they should have pushed this a lot harder a lot earlier. Same for Hawaii. I guess Australia will always find an excuse to burn more coal no matter who's in the government.

I'm for more tethered flying wind power research because it's more broadly applicable. It's not like there are going to be a lot of private planes operating in the future.