Six tidal stream projects successful in the UK’s latest renewable auctions

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Six tidal stream projects successful in the UK's latest renewable auctions

The results of Allocation Round 6 (AR6) of the UK's Contracts for Difference renewable auction were today announced, with 6 projects across 5 sites, successfully securing contracts to deliver 28MW of tidal stream capacity at £172/MWh.

AR6 is the third consecutive renewable auction with a ringfence for tidal stream energy. This has given the UK an unrivalled deployment pipeline. With the results of this year's auction the UK is on track to have over 130MW of tidal stream capacity deployed in its waters by 2029.

The strike price represents a 34% saving against the Administrative Strike Price and is the lowest cost that tidal stream projects have been contracted at since the introduction of the ringfence.

The results are available here, and the projects that secured contracts in AR6 are:

• HydroWing - 10MW in Wales
• MeyGen - 9MW in Scotland
• Seastar - 4MW in Scotland
• Magallanes - 3MW in Scotland
• Ocean Star Tidal - 2MW in Scotland

Scotland now has 83MW and Wales 38MW of contracted tidal stream capacity in the UK's renewable auctions. There has still not been a successful tidal stream project contracted in England. The Marine Energy Council (MEC) is committed to working with the Government to ensure the tidal stream opportunity is shared across Great Britain.

Tidal stream is an entirely predictable renewable technology. Its predictability means it can play a key role in the UK's future energy mix and in a secure transition to net zero.

The UK has over 11GW of accessible tidal stream capacity, which when harnessed could provide over 11% of its electricity demand. Projects are being deployed with over 80% UK supply chain content spend. It is the ambition of the Marine Energy Council that the UK supply chain is embedded in projects deployed here and around the world.

The UK Government demonstrated international leadership by increasing the ringfence to £15m in this year's renewable auction. However, to maintain this leadership the MEC is calling on the Government to maintain the ringfence in future rounds, increase the amount to £30m, and set a 1GW deployment target for 2035.

Richard Arnold, Policy Director of the MEC, responded to today's announcement:

"These results represent an important step forward for the tidal stream industry. The UK is now on track to have over 130MW of tidal stream capacity in its waters by 2029. These projects will provide entirely predictable renewable energy and a critical service to the UK energy system.

"The tidal stream ringfence has provided a clear route to market, supporting the industry to grow, create jobs and secure investment into UK supply chains. Maintaining and increasing the size of the ringfence in future rounds will ensure the UK continues to lead in developing, deploying, and exporting tidal stream technology and expertise around the world."

Source: UK Marine Energy Council

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