Additional budget support required to unlock the UK’s tidal power sector
Written by UK Marine Energy Council on .
The National Grid ESO has published its Future Energy Scenarios, calling for decisive action in the next two years to deliver a fair, affordable, sustainable and secure net zero energy system by 2050. As part of its different pathways tidal power is forecast to reach a minimum of 3GW or upwards of 5GW in delivering the UK’s 2050 net zero target.
The ESO's Future Energy Scenarios sets out different pathways the UK could take to meet its net zero targets and the strategic choices that need to be made.
The UK has over 11GW of predictable tidal stream energy potential, which when harnessed could provide over 11% of its electricity demand. Since 2022, and the introduction of the tidal stream ringfence in the Contracts for Difference mechanism, the UK has been making important steps towards realising its tidal stream potential.
Allocation Rounds 4 and 5 of the Contracts for Difference mechanism secured over 40MW and 50MW respectively. The previous Government set the ringfence to £10m for Allocation Round 6, which is forecast to secure only an additional 13MW.
National Grid ESO’s Future Energy Scenarios has stated that further government support will be needed to unlock a thriving tidal sector for the UK.
The Energy Secretary has until 1st August to increase the budget and size of the tidal stream ringfence in Allocation Round 6 and build on the momentum that has been created by the previous two rounds. A spokesperson for the Department for Energy Security and Net Zero confirmed last week that the Energy Secretary will consider increasing the budget for AR6.
Richard Arnold, the MEC’s Policy Director, said:
“We welcome reports that the Energy Secretary is considering increasing the budget for Allocation Round 6. Our ask is for the tidal stream ringfence to be increased from £10m to £30m. This will support embedding UK content in projects deployed here and around the world.
“There are tidal stream turbines in our seas delivered with over 80% UK supply chain content spend. An increase in the tidal stream ringfence means more jobs being created, SMEs supported and secures investment in coastal communities.”
