Administrative Strike Prices increase for Allocation Round 6

The Department of Energy Sexurity and Net Zero (DESNZ) has announced that the Administrative Strike Prices (ASP) for tidal stream and wave energy will increase for the next renewable auction by 29% to £261/MWh and 5% to £257/MWh respectively.

The announcement follows an extensive review by the UK Government to understand the impact of global events on supply chains and the inflationary pressures the renewable industry faces.

The Marine Energy Council (MEC) has welcomed the increase, however is concerned that the increase in wave energy's ASP is significantly less than other renewable technologies.

Richard Arnold, MEC's Policy Director said:

"Whilst the increase for tidal stream to £261/MWh is welcome, wave energy faces the same inflationary pressures as other renewable technologies. The MEC will seek to understand from DESNZ the reason for this disparity in the increase".

Allocation Round 5 contracted over 50MW of tidal stream capacity, putting the UK on track to have over 100MW deployed by 2028. The MEC has called on the Government to build on this momentum, and is advocating for the ringfence for tidal stream to be set at £30m for Allocation Round 6.

The UK Government's decision to ringfence support for tidal stream has ensured it remains a world leader in the development and deployment of this entirely predictable renewable energy resource.

Wave energy has also taken significant steps forward with CorPower's pilot project is harnessing the power of Portugese waves, and a planned 5MW wave energy array in Ireland is due to be deployed thanks to EU support.

To date there has not been a ringfence for wave energy, which will be required, alongside an enabling ASP, to realise the full potential of the UK's tides and seas.