The Offshore Renewable Energy (ORE) Catapult has welcomed the inclusion of tidal energy projects in today’s Contract for Difference (CfD) Round 4 results.
The winning projects, which are Orbital Marine Eday 1 & 2, Morlais Magallanes and Meygen Phase 2, will together have a capacity of 40MW when built.
ORE Catapult wave and tidal sector leader Simon Cheeseman said: “We welcome this long-awaited revenue support given to the tidal stream industry today from the UK Government – demonstrating their confidence in our world-leading tidal stream sector and priming it for the global export market.
He said it market the beginning of a journey to 1GW tidal deployment capacity by 2035, helping the UK achieve its net zero targets and driving down the cost of tidal stream, making it competitive with other renewable sources of electricity.
SAE will work to achieve financial close for the next phase (28MW) of the Meygen project by 2024 with the operation starting in 2027.
Graham Reid, CEO of SAE, said: “The significance of today’s announcement cannot be downplayed.
“We are going to be delivering the world’s first commercial scale tidal array and we now have a clear runaway, with future CfD rounds, to deliver the full c400MW of tidal power generation at MeyGen.
“I can’t thank enough all those who have championed, supported, and invested in our business to achieve this milestone. Our absolute focus will be on the delivery of this project.”
Ocean Energy Europe also welcomed the development.
By awarding contracts to three projects, the government also “ensures healthy competition and large-scale growth potential across several tidal technologies”, Ocean Energy Europe stated.
For the tidal industry’s progress to be sustained, the group also said it is “vital” that the UK government creates long-term visibility by continuing to include ringfenced allowances in future allocation rounds.
Two contracts were awarded to Orbital Marine Power’s 7.2MW multi-turbine Eday project in Orkney, Scotland, which will deploy floating technology.
In Wales, another floating tidal project, the 5.62MW Morlais Magallanes, will be powered by Spanish tidal technology.
Lastly, the Meygen project, which has been providing power to the grid since 2016, will now be able to expand its generating capacity by 28MW with a second project phase.
Ocean Energy Europe CEO, Remi Gruet said: “Today’s announcement is the first step in turning a 20GW resource into a large-scale power source.
“Tidal energy can now take its rightful place in the UK’s mainstream electricity supply. It is time for the EU to follow suit by actioning the commitments made in its offshore renewables strategy.
“Europe has long been the global leader in developing and deploying renewable energy – by dragging its heels on the Strategy, the EU now risks being left behind.”