The Offshore Renewable Energy (ORE) Catapult has published a new evidence-based assessment that shows the UK’s marine energy industries can meet the requirements of the UK government’s ‘Triple Test’ for emerging technology support.
When announcing the Clean Growth Strategy in October, Climate Change and Industry minister Claire Perry set out a new ‘Triple Test’ for determining support for new technologies. The tests are: achieving maximum carbon reduction; showing a clear cost reduction pathway, and demonstrating that the UK can be a world-leader in a global market.
Key findings from the Tidal Stream and Wave Energy Cost Reduction and Industrial Benefit report include:
The tidal stream industry could generate a net cumulative benefit to the UK of £1400m, including considerable exports, and support 4000 jobs by 2030.
Assuming a 10-year lag behind tidal stream, wave energy could add a net positive contribution to the UK economy of £4000m and support 8100 jobs by 2040.
50-60% of the economic benefit is expected to be created in coastal areas with greater need for economic regeneration.
Marine energy technologies have the potential to displace natural gas generation on the grid and to reduce CO2 emissions permanently by at least 1MtCO2 per year after 2030 and at least 4MtCO2 per year after 2040.
Tidal stream has the potential to significantly reduce costs from approximately £300 per MWh today to below £90 per MWh within 1GW deployment. Further reductions are possible with additional focus on innovation and continued reductions in cost of capital.
?Dr Stephen Wyatt, ORE Catapult’s Research & Innovation director, said: “The findings of our research are encouraging, with the potential for significant economic benefits to be realised from the UK marine energy resources.
“We will now continue our work with the tidal stream and wave energy industries, as well as relevant government departments, to discuss these findings and establish the best way forward for future support that will enable the UK to capture such advantage, in terms of growing our economy, creating jobs and exporting goods and services all over the world.”
In terms of the type of future support required, the report found that the technologies’ needs differed due to their maturity levels. Tidal stream requires an immediate route to market via revenue support to enable volume deployment, standardisation and the application of existing innovation activity, as well as ongoing research and development funding to further enhance the technology and solutions available.
Wave energy requires continued research and development funding support to achieve technology convergence and prove survivability and reliability.