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MeyGen tidal power project fails to get CfD

The AR1500 tidal energy turbine. Source: Lockheed Martin

Sep 11 (Renewables Now) - Atlantis Resources Ltd (LON:ARL), the developer of the up-to-398-MW MeyGen tidal power project in Scotland, has failed to secure a contract for difference (CfD) in the UK government's auction, whose results were announced today.

The company said the outcome has been expected as it was hard for it to compete with "established" technologies such as offshore wind. Atlantis was seeking support for the  73.5-MW Phase 1C of the MeyGen project and had estimated a two-thirds reduction in the subsidy needed compared to the first phase of the scheme. This cost reduction, however, has not been enough for the project to win a contract and the company called for a bi-lateral negotiations with the Department for Business, Energy & Industrial Strategy (BEIS) or the reintroduction of ringfencing for earlier stage marine renewables.

"Atlantis expects BEIS to recognise the benefits of either a bi-lateral CfD discussion or the reintroduction of a marine energy sub-category in the next allocation round, either of which would be welcomed by Atlantis," the statement reads.

The 6-MW Phase 1A of the project was deployed under the Renewables Obligation (RO) scheme, while the 6-MW Phase 1B did not take part in the auction because it had secured EU funding.

Eleven projects were successful in the CfD auction, including 3,196 MW of offshore wind, 85.64 MW of dedicated biomass with combined heat and power (CHP) and 64.31 MW of advanced conversion technologies. The maximum strike price awarded was GBP 74.75 (USD 98.6/EUR 82) per MWh.

(GBP 1 = USD 1.319/EUR 1.098)  

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Browse all articles from Plamena Tisheva

Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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