- Press Releases
November 24 (Renewables Now) - The UK government on Wednesday said it will invest GBP 20 million (USD 26.7m/EUR 23.8m) per year in tidal stream power as part of its renewable energy auction scheme, helping the sector to develop its technology and reduce costs, following the example of offshore wind.
The fourth allocation round of the Contracts for Difference (CfD) scheme will open on December 13 and will include GBP 20 million per year ringfenced for tidal stream projects, the government said. This is in addition to previously announced funding and brings the allocation round’s budget to GBP 285 million per year.
Tidal energy is viewed as a reliable source of generation and the UK government expects that over time it could play a meaningful role in its decarbonisation ambitions.
Business and Energy Secretary Kwasi Kwarteng said that being an island nation, the UK is well placed to capitalise on clean marine energy. “The investment today provides a major push for tidal power to become a key part of the next generation of renewable electricity projects needed to strengthen energy security as we work to reduce our dependency on volatile fossil fuels,” he added.
“Ring-fenced funding for tidal stream doesn’t just unlock private investment and secure green jobs today - it also puts us in pole position to capitalise on exports to the global market in due course,” noted Renewable UK chief executive Dan McGrail.
Through the upcoming CfD round the UK aims to back up to 12 GW low-carbon electricity capacity, or more than the previous three rounds combined.
The government said that full details of all CfD scheme announcements will be released on Thursday. A draft budget plan for the auction was announced in September.
(GBP 1 = USD 1.337/EUR 1.188)