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Wave and tidal stream energy – time for long term support

Thursday 15 March 2007

Today, over 300 of the senior industry, investor and policy figures in the global wave and tidal energy sector gathered in the QEII Centre in Westminster to hear a rallying call and message of optimism for this major energy market of the future.

Parliamentary Under Secretary of State for Energy Lord Truscott and Ben Bradshaw MP, Minister for Local Environment, Marine and Animal Welfare were unanimous in their support for wave and tidal stream energy technologies, recognising their long term potential in both future energy supplies and economic development in the UK.

Despite key political support, BWEA is concerned that this rhetoric is not yet being backed up by long term policy support.

Today's welcome publication of the Marine Bill White Paper provides the overarching framework for planning and consenting marine renewable energy projects. However, this needs to be backed up by new financial support mechanisms, if the UK is to retain its current global lead.

The Energy White Paper, due shortly, is a key opportunity to put in place this support. BWEA is calling for Government to get the incentives right for wave and tidal energy projects in its reform of the Renewables Obligation. In addition, capital support from the Environmental Transformation Fund will be required, in the order of £100 million, to get early projects into the water. Decisions on the ETF will be made in this summer's Comprehensive Spending Review.

Today's conference gave a very clear message of warning that unless this opportunity to take action is seized firmly, an industry on the same scale as wind power in Denmark which employs over 20,000 people, could be lost to the UK. The future value of this market has been put at as much as £4.2 billion annually to the UK economy by 2050 by the Carbon Trust, making the sums involved an excellent investment for UK plc.

As BWEA CEO Maria McCaffery commented

"Today we've been giving the message to Ministers that the reform of the Renewables Obligation is a golden opportunity to secure this long term low-carbon industry for the UK. We believe they're listening and we hope they will continue to do so. Indeed, they must if the Government's own climate change goals and renewable energy targets are to become a reality."

 

Notes

  • BWEA's fourth annual wave and tidal energy conference is the world's largest dedicated event attracting over 300 of the leading players in the sector. For more information see www.bwea.com/marine/conference.html
  • The UK is leading the world in offshore wind energy development and wave and tidal stream technology innovation
  • The UK's offshore wind programme could deliver over 9% of the UK's electricity by 2020; wave and tidal could provide almost 2% in this time
  • Renewables are the only sure carbon free sources of energy that can be built and producing electricity by 2020, the planning process is however key to ensure this happens
  • In the longer term, the Carbon Trust estimates that wave and tidal stream could deliver 20% of the UK's electricity requirements
  • The Carbon Trust states that the wave and tidal stream industry could be worth £600 million - £4.2 billion annually to the UK economy by 2050, whilst also delivering significant carbon reductions
  • Offshore wind, wave and tidal stream require a suitable market support mechanism in order to deliver this potential, and one that differentiates between the differing costs of these technologies today