Tidal power proponents make plea for ring-fenced funding

Proponents of the fledgling tidal power sector have made a last-minute plea for ring-fenced funding in the upcoming Contracts for Difference auctions, warning that the UK’s “world-leading” position can only be maintained with “practical support from government to match its undoubted goodwill.”

They said, although tidal turbines are theoretically able to bid in the auctions, in practice they will be outcompeted by other types of generation in the absence of dedicated funding.

In its draft budget notice in September, the government announced that £265 million of annual subsidies (2012 prices) would be available in the fourth Contracts for Difference allocation round: £10 million in the pot 1 auction for more-established technologies such as onshore wind and solar; £55 million in the pot 2 auction for less-established technologies, including floating wind and tidal stream; and £200 million in the new pot 3 auction dedicated to offshore wind.

Tidal stream proponents have the urged the government to establish a “pot within a pot” by giving projects first access to a portion of the auction budget. They noted that the draft budget notice already includes a £24 million minimum for floating wind.

With the government due to issue the final budget notice by this Friday (26 November) – at least 10 working days before the fourth allocation round is scheduled to open on 13 December – they said ministers have less than week left to save the future of the tidal stream industry in the UK.

Alistair Carmichael, the Liberal Democrat MP for Orkney and Shetland, said: “The United Kingdom is at the forefront of the development of tidal stream energy – something we are rightly proud of here in the Northern Isles. We know that the potential benefits to our economy and the environment could be enormous, with job opportunities across the country and export markets waiting.

“All that is needed is that modest boost from the government to get this industry to full commercial rollout, ready to compete with other established renewable technologies. This is the last great hurdle.”

He said: “Waves of ministers and political leaders – including the prime minister himself – have come to the isles to see for themselves the strides made by EMEC and Orbital Marine Power in ramping up tidal stream technology.

“It is time that they matched the positive words with the necessary fiscal support. We know that others globally are making their own investments in tidal stream – if we want to protect our hard-won lead in this sector, we have to act now.”

Neil Kermode, managing director of the European Marine Energy Centre (EMEC) based in Orkney, said: “The UK has the largest tidal energy resource in Europe, and one of the best in the world. No country is better placed to maximise the opportunity to build a home-grown sustainable energy sector that can take the best of British technology to the global marketplace.

“The government has demonstrated its support for floating offshore wind by setting a 1 GW deployment target and providing ring-fenced support at £24 million. We are looking for the same support for tidal stream – a shared ambition and a dedicated pot of money to support this innovative technology.”

“This is not about asking for more money, but for ring-fenced support,” he added. “We can deliver a great British success story if that modest point is grasped and acted upon.”

Andrew Scott, chief executive of Orbital Marine Power, said: “The UK currently leads the world in the race to develop and deploy this innovative green industrial opportunity.

“I am proud that Orbital’s pioneering O2 turbine has a supply chain stretching the length and breadth of the UK and uses over 80 per cent UK content. We have shown that tidal stream energy in the UK can deliver not only clean energy, but sustainable high-quality green jobs too at an intensity not witnessed before in the UK.”