The Marine Energy Council (MEC) welcomed the increase, which is expected to contract an additional 25 MW of tidal stream capacity to the UK’s deployment pipeline.
“The UK Government has demonstrated international leadership in increasing the tidal stream ringfence to £15m. This is an important step forward in realising the potential of this entirely predictable renewable energy resource,” said Sue Barr, Chair of the MEC.
“The UK can lead the world in harnessing the power of its tides, and in exporting tidal stream technology and its expertise around the world.”
In March, the UK government set a £10 million ringfence for tidal stream in this year’s renewables auction, which has now risen.
The UK’s annual renewable auctions have secured a substantial pipeline of tidal stream capacity, thanks to introducing a ringfence for the technology in 2022. Over 40 MW of tidal stream capacity was contracted through the first ringfence and over 50 MW in the second.
In November 2021, The UK government said it would invest £20 million per year in tidal stream electricity as part of its flagship renewable energy auction scheme, kickstarting a brand-new chapter for the marine energy industry.
However, in March 2023, that £20 million sum was halved after confirming the £205 million budget for renewable energy projects in the fifth round of contracts for difference (CfD) auction, which featured plans to cut the tidal stream ringfence from £20 million to £10 million.
The tidal stream ringfence has had a significant impact, with companies like HydroWing opening offices in north Wales for their projects, SAE Renewables preparing to deliver the world’s largest project in the Pentland Firth, and increased investment in the UK marine energy supply chain.
Tidal stream turbines are deployed with over 80% of the UK supply chain content. MEC aims for UK content to be integral to projects in its waters and worldwide.
One of the five key asks that MEC set for the upcoming Government in order to realize the potential of wave and tidal energy was to increase the tidal stream ringfence to £30 million in this year’s renewable auction (Allocation Round 6).
Increasing the ringfence to £30 million could have potentially secured over 40 MW for the next Government, sustaining momentum and industry expansion while reinforcing the UK’s international leadership in this sector, said MEC at the time.
According to recent research by Offshore Renewable Energy (ORE) Catapult and Imperial College London (ICL), tidal energy has the potential to provide 11.5 GW to the UK energy system, 11% of the UK’s electricity demand, and tidal stream projects could contribute up to £17 billion to the UK economy by 2050.
