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The race for shore power

Leadership Insights Newsletter Story 

Shore power will play an increasing role in maritime energy transformation. However, despite its potential, adoption has been sluggish, with only 3% of global ports currently offering OPS services. Recent regulatory and industry developments in the EU and US may signal a significant turning point.

29 October 2024
Shore power from renewable sources has potential to help shipping inch closer to net zero targets. Credit: Shutterstock

The regulatory landscape around port decarbonisation and shore power has shifted, and the race is on to implement the necessary infrastructure and technologies. Many members of Cruise Lines International Association (CLIA), which include Carnival, Royal Caribbean and MSC Cruises, have committed that by 2035, ships calling at ports capable of providing an onshore power supply (OPS) will be equipped to plug in or use low-carbon alternatives. Meeting this commitment will depend will depend on both availability and standardised equipment.

Donnie Brown, Senior VP of Global Maritime Policy at the Cruise Lines International Association (CLIA), told ICS Leadership Insights that cruise lines have invested millions of dollars in onboard shore power capabilities. He said: “Across the CLIA cruise line member fleet, 120 ships, 46% of the total, are equipped to connect to shoreside electricity. By 2028, more than 210 ships will be sailing with the ability to plug in at port—representing 72% of all CLIA cruise line member ships.”

Critical partnerships
The Port of Seattle was one of the first in the US to announce it would require all cruise vessels to use shore power. After a US$44m investment in infrastructure and the electrification of the Bell Harbor Cruise Terminal at Pier 66, it has now installed three shore power systems. This was possible due to close collaboration between the city’s public utility company Seattle City Light and the Mayor’s office, and is set to reduce greenhouse gas emissions by 4,500 metric tons each year. On the East Coast, located in the worlds cruise capital, PortMiami has undertaken significant efforts to create shore power at five cruise berths. It required a multi-organisation partnership between the port, cruise lines, the Florida Power & Light Company, and the support of local politicians to implement. It involved improvements to the electrical grid, supply lines and shore-side equipment on the pier. This has enabled 21 ships to plug in at the port this year alone, with more than 350 calls.

In Europe, change is also happening fast. The Port of Barcelona was the first Med port to implement shore power via its OPS as part of its EUR 200m Nexigen plan, aimed at electrifying the port’s docks and providing ships with renewable electrical energy. On 17 September, the 235,651gt containership MSC Mette, became the first ship to connect to the system. The initiative aligns with broader EU goals to rapidly expand shore power availability. With its first system already operational, it plans to extend the service to other terminals.

Meanwhile, Ports of Stockholm has inaugurated Sweden’s first onshore power connection for cruise ships. Around 45% of Stockholm’s cruise ship calls can now use this service, with the electricity provided being completely green. This is part of a broader initiative in which the city collaborates with Copenhagen, Aarhus, and Helsinki under EU-backed projects. Ports of Stockholm said it wants to achieve zero emissions from ships by 2040, expanding shore power connections and offering incentives like port fee discounts for environmental performance.

While Europe is expanding its investments, China has been powering ahead with OPS. Non-governmental organisation Clean Air Asia claims that 84% of specialised berths in the country’s 21 coastal ports – and all berths at the seven biggest ports – have access to onshore power supplies as of 2022. Under the country’s 14th five-year plan (2021 2025), the policy is currently to increase the use of OPS, with estimates predicting that the number of battery-powered vessels serving Chinese coastal and waterway ports will rise from 0.55% in 2022 to 18.5% by 2025 (although some view this figure as optimistic).

Economic barriers and solutions

Despite these advances, economic barriers continue to challenge wider adoption. As Dr. Simon Bullock of the Tyndall Centre for Climate Change Research explains: “Fuel oil is cheap and untaxed, whereas electricity is very highly taxed, particularly in the UK.” This price disparity discourages ship operators from using shore power, as ship generated power remains more affordable than electricity from the grid. Without significant policy reforms—such as tax breaks and subsidies—the cost of shore power will deter widespread adoption.

The investment needed to install shore power infrastructure is also substantial. CLIA estimates that equipping ships and retrofitting berths with the necessary technology will cost millions. Ports are hesitant to invest without a guarantee that ships will use the technology, creating a chicken-and-egg dilemma. In response, the EU’s “Fit for 55” initiative mandates that major ports provide shore power by 2030, pushing for greater investment in infrastructure.

Global standards
While regulatory frameworks are evolving, the lack of global standardisation in shore power technology remains a key obstacle. Dimitris Monioudis, Managing Director of shipbroker and agents Rethymnis & Kulukundis, notes that without universal standards, shipping companies are reluctant to invest in systems that may not be compatible across all ports. Until this issue is resolved, shore power’s full potential will remain untapped.

Shore power is not a silver bullet for maritime decarbonisation, but it plays a crucial role. As Dr. Bullock points out, “We need lots of different actions—on fuels, energy efficiency, and operating practices.” Shore
power offers an immediate way to reduce emissions at port while laying the groundwork for future innovations such as hybrid and fully electric vessels.

As governments, ports, and shipping companies collaborate to expand shore power infrastructure, the maritime industry moves closer to achieving its long-term net zero goals.