Carnegie Welcomes UK’s Increased Wave Energy Support

Wave energy developer Carnegie Wave Energy Limited welcomes the UK Government’s proposal for increased support of wave energy across the UK which will see wave projects receive more than 5 times the tariff of onshore wind projects.

The UK Government’s Department of Energy and Climate Change (DECC) consultation sets out the Government’s proposals for levels of tariff support for the period 2013-17. Whilst some renewable technologies, such as onshore wind and solar PV, will have their support levels reduced, wave will receive 5 Renewable Obligation Certificates (ROCs) per MWh (or a sale price in excess of 40c/kWh), up from the current 2 ROCs.

Marine energy is identified in the UK Government’s 2011 Renewable Energy Roadmap as one of the technologies which have “either the greatest potential to help the UK meet the 2020 renewables target in a cost effective and sustainable way, or offer great potential for the decades that follow”.

The Renewable Energy Roadmap estimates that commercial-scale wave project deployment is expected to increase through the second half of this decade, reaching in the order of 200-300MW by 2020 and could increase as high as 27,000 MW by 2050. Recent figures published by RenewableUK suggest that by 2035 the marine energy industry in the UK could employ 19,500 people, with an annual value of £6.1bn ($9.8bn).

To date, the UK Government has supported marine energy with £100m of grant funding. Another £20m of grant funding to support the deployment of pre-commercial array demonstrations in the UK was released in June 2011.

Additionally, further grant funding for innovation in wave and tidal energy is planned by other delivery bodies such as the Energy Technologies Institute, the Technology Strategy Board and by Devolved Administrations, such as the Scottish Executive.

The paper also highlights the potential l “balancing cost” benefits from significant marine energy contribution within a high renewables generation mix, noting that wave is predictable over much longer timescales than wind.

Carnegie has recently completed a detailed site assessment of suitable sites for deployment of Carnegie CETO wave energy projects greater than 10MW throughout the UK.

A Renewable Obligation Certificates (ROC) are green certificates issued for eligible renewable electricity generated within the UK. ROCs are currently valued at approximately £45 each meaning that the 5 ROC wave tariff translates to approximately £225/MWh or $360/MWh (36c/kWh) on top of the wholesale power price. The 5 ROC tariff will be for projects commissioned prior to 2017 and up to 30MW in capacity. Capacity in excess of 30MW will be supported with 2 ROCs.

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Source: carnegiecorp, October 21, 2011