Industry warns financial support needed if UK marine energy is to make waves

[FBaggins]

The UK has the potential to cement its position as the global leader in maritime energy technologies, opening up huge potential export opportunities, but only if the sector continues to enjoy generous financial support as the government introduces its new clean energy financial support mechanism. That is the stark warning contained in a report released today by RenewableUK to mark the launch of its annual Wave and Tidal Conference in London.

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However, the report warns the UK's position as the world's leading marine energy hub could be put at risk as the UK transitions from the current Renewables Obligation subsidy regime to the new feed-in tariff style Contract for Difference (CfD) mechanism enabled by the government's new Energy Bill.

RenewableUK has calculated that in order to attract investors to commercial scale marine energy arrays the CfDs that are due to be introduced in 2017 will have to guarantee wave energy projects a strike price of between £300 and £320/MWh, while tidal arrays will need a strike price of £280 to £300/MWh.

The industry is also arguing that the contracts guaranteeing the strike prices should be extended for 20 years, as opposed to the 15 years currently proposed by government.


http://www.businessgreen.com/bg/news/2250851/industry-warns-financial-support-needed-if-uk-marine-energy-is-to-make-waves