Tidal stream and wave energy projects in the UK have potential to deliver more than £8bn in economic benefits to the Scottish economy by 2050, according to a new report by the University of Edinburgh.
The Future Economic Potential of Tidal Stream and Wave Energy in Scotland report, commissioned by Scottish Enterprise (SE) and Wave Energy Scotland (WES), reveals the size of the potential economic prize for Scotland if the correct steps are taken to ensure it remains the “world-leading” destination for developing marine energy.
The report presents a scenario where there is an estimated Scottish market for up to 8.8GW of marine energy by 2050, with potential deployments of up to 12.6GW throughout the UK and up to 300GW globally.
The report states this could deliver up to 62,000 jobs in Scottish companies in 2050, comprised of 15,600 jobs in the UK, plus a further 46,000 jobs from worldwide exports.
The global export market for marine energy over the same timeframe could be worth as much as £28bn to Scotland’s economy.
The report combines the findings of separate reports on tidal stream and wave energy commissioned by SE and WES respectively.
Scotland already has significant advantages in marine, including abundant natural resources, enterprise agencies such as SE and Highlands and Islands Enterprise (HIE) with expertise in supporting and growing the sector, and a decade of WES investment in wave energy and subcomponents with £50m awarded across 132 contracts.
It is also home to the European Marine Energy Centre (EMEC), the world’s first and leading facility for demonstrating and testing wave and tidal energy converters for the last 20 years.
The report recommends further investment in the supply chain, ongoing market support for marine companies, continued investment in existing innovation support organisations and further development of essential infrastructure (such as the grid) as key areas of focus for policy makers, to ensure Scotland remains the global location of choice for marine developers.
Key opportunities for the supply chain include areas where Scotland is in line with or ahead of the market, such as development and testing of devices; installation, operations and maintenance; device manufacture and subsystem integration.
Suzanne Sosna, Director of Energy Transition at Scottish Enterprise, said: “These findings really drive home the need to take action now if we want to reap the potentially sizeable economic benefits of remaining a world leader in marine energy.
“Scotland already has advantages such as abundant natural resources, innovative companies and decades of energy, maritime and subsea expertise.
“Marine energy has so far benefitted from strong public sector support and is now poised for commercialisation, so there’s never been a better time to help companies scale up their offering.
“It’s fitting that this report comes almost exactly a year after we launched our new focus on economic transformation, as it clearly demonstrates our commitment to the mission of creating an internationally competitive renewable energy industry in Scotland.”
Tim Hurst, Managing Director of Wave Energy Scotland, said: “This report clearly demonstrates the huge economic and societal benefits of continuing Scotland’s commitment and investment in marine energy to ensure it remains a global leader – using our natural resources for national benefit.
“It also highlights the incredible synergies with other energy sectors, such as offshore wind, allowing for sharing of infrastructure and skills into the future.”