A total of 91 MPs from all the main parties in the UK have signed a letter to the Energy Minister Claire Perry urging her to put measures in place to ensure that the UK capitalises on its role as a leader in wave and tidal power.
The letter, written by the Conservative MP Richard Graham, chair of the all-party parliamentary group on marine energy and tidal lagoons, encourages the government to bring forward new policies to support wave and tidal technologies in its upcoming Energy White Paper.
Current financial support – auctions for Contracts for Difference – will not bring forward marine renewables, as the sector is at an earlier stage of development than other technologies which are also competing for CfDs such as offshore wind, said trade body RenewableUK.
Conservative, Labour and Liberal Democrat MPs also signed the letter, which suggests reforming the CfD system so that marine technologies compete among themselves for government-backed power contracts.
“This would drive competition and reduce costs, while incubating them until they are cost-competitive with other mainstream forms of low carbon power,” said R-UK
The MPs also highlight an industry proposal to offer tax rebates to corporations that agree to pay above the market rate for electricity generated by wave and tidal projects, known as Innovation Power Purchase Agreements.
The letter also warns of increased competition from other countries, such as Canada, the US and China, for investment and expertise.
But, it said, with the right support, the UK is in a position to lead the global market which could grow to £76bn by 2050.
Graham said “Marine energy is an innovative, world-class industry in which the UK is a global leader.
“We have an unparalleled resource with 50% of Europe’s tidal energy and 35% of its wave energy.
“It is time to grasp the opportunity in front of us, as the Government has with offshore wind.
“Right now people are clamouring for more action on climate change. Marine energy provides a perfect opportunity for the government to show that it is listening.
“To ensure the industry keeps growing, marine energy needs a route to market.
“The right kind of support will enable firms to take investment decisions which will ensure we retain our advantage – otherwise it will slip away to international competitors.
“We need to secure the UK’s pole position as a leading exporter of marine technology around the world, capturing the lion’s share of the global market”.
R-UK deputy chief executive Emma Pinchbeck said: “Public support for wave and tidal power hit an all-time high this week, with 82% of people backing it.
“We need to scale-up our renewable capacity massively right now to meet our carbon reduction targets.
“The industry stands ready to deliver but we need action from Ministers to get our innovative, world-leading technology deployed at scale.”