UK Government raises maximum prices in renewable energy auction

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The United Kingdom government has announced a significant increase in the maximum price for tidal and offshore wind projects under its flagship Contracts for Difference (CfD). The move is aimed at solidifying the UK’s position as a global leader in clean energy and fostering sustainable development.

In response to a comprehensive review, which considered the impact of global events on supply chains, the government has elevated the maximum price for tidal, offshore wind and other renewables projects eligible for the next Contracts for Difference auction. The CfD scheme guarantees a fixed price for the electricity generated by renewable energy projects, encouraging continued investment in the UK.

The maximum strike price for tidal energy rose by 29% – from £202/MWh to £261/MWh3.

Offshore wind projects saw a substantial 66% increase, rising from £44/MWh to £73/MWh. Floating offshore wind projects have also experienced a significant boost, with a 52% increase from £116/MWh to £176/MWh, ahead of the upcoming Allocation Round 6 (AR6) set for next year.

This strategic adjustment aims to ensure that projects remain economically viable and competitively priced in AR6, following the success of previous CfD auctions, which have already awarded contracts for approximately 30GW of new renewable capacity across all technologies since 2014.

In an effort to accommodate the high number of offshore wind projects ready to participate in AR6, the government will allocate a separate funding pot exclusively for offshore wind. This move is designed to stimulate healthy competition among a robust pipeline of projects, supporting the UK’s ambitious target of achieving up to 50GW of offshore wind by 2030, including up to 5GW of floating offshore wind.

For more information on Contracts for Difference (CfD) and the upcoming Allocation Round 6, please visit the official government website.

Note: This news release is based on information provided by the government on November 16, 2023.

TIGER project is driving growth of tidal energy in UK and France

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The Tidal Stream Industry Energiser Project (TIGER) that launched in 2019 to drive tidal energy growth in the UK and France, has successfully demonstrated the significant value tidal stream energy can bring to the future energy mix, economies and supply chains in both the UK and France.

TIGER is the largest project funded by the Interreg France (Channel) England Programme, with €48.4 million invested to drive collaboration and cost reduction through tidal turbine installations in the UK and France.

The project, led by the Offshore Renewable Energy (ORE) Catapult, has enabled installation of four new tidal stream energy devices at test sites in and around the Channel region, with a further 16 in development. This has created a total of 3.6 MW new tidal capacity, with a further 57.4 MW in the pipeline.

Instrumental to the success of the project was collaboration between the 18 TIGER partners across the UK and France, spanning turbine developers, ocean energy demonstration sites, research organisations, and local and regional authorities, each supporting the tidal industry as it moves towards commercialisation.

To find out more go to www.interregtiger.com

Research finds tidal stream power could significantly enhance energy security

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A study published in the journal Applied Energy, and focused on the Isle of Wight, has found that installing tidal stream systems, in addition to solar and offshore windfarms is around 25% more effective at balancing supply with demand. This is as opposed to relying on solar and wind technologies alone. 

The research concludes that adopting tidal power can significantly enhance energy security and enable communities to fulfil their clean energy ambitions.

The Isle of Wight has plans to create renewable energy and achieve its net zero emissions by 2040. Our PTEC project could play a leading role in that – as documented here on our site.

A full report on the research can be found on Offshore Energy. An excerpt of the story is shared below:

 

To understand some of the challenges of achieving the island’s goals, researchers developed a model which takes into account the need for supply-demand balancing, the whole-system cost of energy, and the spatial coverage of the renewable energy projects.

They found that installing 150MW of solar power, 150MW of offshore wind, and 120MW of tidal stream capacity maximises both supply-demand balancing, and the magnitude of maximum power surplus – by 25% relative to the best performing solar and wind systems.

Tidal stream adoption also minimizes the magnitude of maximum power shortages and surpluses across the year by 11% and 24% respectively, the research states.

The study was led by Danny Coles, research fellow on the Interreg’s TIGER project at the University of Plymouth, working with the European Marine Energy Centre (EMEC), HydroWing, Perpetuus Tidal Energy Centre, and the University of Edinburgh.

Coles said: “Tidal stream energy provides a predictable, reliable source of renewable power that, if harnessed, can complement the variability of wind and solar. Unlike wind and sun, the tides are present every day of the year. Our results show that adopting a combination of all three can reduce reliance on imported power and volatile prices.

“This is particularly relevant to the current energy landscape, when cold weather is increasing heating demand and millions will be paid to use less electricity to avoid blackouts.”

“As the transition to net-zero energy continues, there is a need to better understand how to build system resilience to overcome periods of high demand and low wind resource. While it is well understood that tidal stream power is predictable and reliable, this research quantifies the system benefits that predictable and reliable tidal supply can provide.”

The research is already being used by the Isle of Wight Council and Scottish & Southern Electricity Networks to assess the scope of work needed for grid upgrades on the island.

The results are also being used by Scotia Gas Networks (SGN) in a whole-system study that builds on the research builds on the research and focuses on the island’s entire electricity system.