OTEC harnesses the temperature difference between shallow and deep ocean waters to generate electricity. There are two types of OTEC plants - closed-cycle plants that use ammonia as a working fluid and open-cycle plants that use seawater. OTEC is a promising renewable energy source as the oceans hold vast thermal reserves and can generate power continuously. While OTEC development faces challenges related to costs and environmental impacts, many countries are exploring OTEC to reduce dependence on fossil fuels.