15 November 2016

It has been a little while since our last marine newsletter, and plenty has happened in this time. With a number of positive stories emerging over the past few months we thought it would be timely to provide an update on all things marine energy  including: Contracts for Difference; news from Wave Hub, Carnegie, and MeyGen; as well as upcoming events.

In more good news, Mojo Maritime have been shortlisted for an award at our upcoming Green Energy Awards, in the sustainable energy installer category and we look forward to finding out how they get on! The awards ceremony is a great night and will be the perfect end to our Renewable Futures conference on the same day. It would be great to see as many of you there in Bath on 29 November, do let me know if you will be there or would like more information about booking tickets.

I also wanted to let you know that I am now working with Regen again, alongside my other projects, so please do keep me updated on any more good news you have. I will endeavor to produce a regular news update and would welcome your input.

Contracts for Difference
The long awaited Contracts for Difference (CfD) announcement came last week, bringing mixed news for the marine energy sector.  

On one hand the strike prices for marine energy remains high. Wave and tidal energy have been separated out from each other, with wave receiving £310/MWh in 2021 and £300/MWh in 2022, while tidal stream starts at £300/MWh and drops to £295/MWh in 2022. 

However, the 100 MW reserved ‘minima’ for wave and tidal has not been extended beyond the current delivery plan period which will end in March 2019 (outside the timeframe of this allocation round). This means that wave and tidal projects that wish to bid into the forthcoming auction will have to do so in direct competition with offshore wind and the other Pot 2 technologies. 

The overall CfD programme is aimed at supporting offshore wind, and the government has previously indicated that it would like to see a further 4 GW of offshore wind technology deployed in the next delivery period. With offshore wind costs falling rapidly, and a number of projects ready to go in the pipeline and presumably now desperate to secure a contract, the industry is anticipating a very competitive auction which could see prices well below the ceiling strike prices of £105/MWh in 2021 and £100/MWh in 2022.

We are currently working with Renewable UK and others to lobby government on this issue. Keep an eye out for the future Ocean Energy Race information soon to be published by Renewable UK.

You can read our full update on the CfD announcement here. 

Carnegie news
We are really pleased to hear the news that Carnegie Wave Energy Limited has been awarded over £9.5 million of European Regional Development Funding, to further develop a 15 MW project at Wave Hub. The funding will be used for phase 1 of the project, which will consist of the design, construction and installation of one 1 MW CETO 6 device at the site. Carnegie intends to build out phase 2 in 2021, completing the 15 MW array. Find out more here.

CWE UK’s CEO, Tim Sawyer said: “Over the last 10 years, Carnegie has made tremendous strides in the development of its CETO wave energy technology. Securing ERDF funding, and bringing in additional private investment, means we can now deliver stage 1 of our planned 15 MW commercial wave energy project at Wave Hub, leveraging the UK's world class marine science, engineering research and operational expertise."

(image features members of Cornwall Council, George Eustice MP, mangement team from both Wave Hub and Carnegie, and is courtesy of Carnegie)

Wave Hub
In the same week that Carnegie won its funding for a project at Wave Hub, Cornwall Council announced that it has concluded negotiations with the UK Department for Business, Energy and Industrial Strategy (BEIS) on the transfer of Wave Hub to the Council, along with £14 million of funding and the creation of a low carbon Enterprise Zone in the key ports of Hayle and Falmouth during 2017.

Councillor Julian German, portfolio holder for Economy and Culture said: “Cornwall is open for business and, as the new owners of Wave Hub, Cornwall Council will be creating the right environment for the sector to grow and flourish”.

Read more here

Another piece of very positive news over the past 24 hours is the announcement from MeyGen that they have successfully started to generate electricity from their first installed turbine. The 1.5 MW Andritz Hydro Hammerfest was successfully installed last week by James Fisher Marine Services, and started generating power last night.
Read more here.

Upcoming events
International Tidal Energy Summit, 22-23 November
The International Tidal Energy Summit is taking place 22-23 November in London. This year’s line-up has an international focus, with updates from Asia, North America and mainland Europe, as well as featuring plenty of speakers from some of the UKs leading tidal energy companies . Let us know if you are going to be attending, there are still a handful of places left to book here.  

Connect South West, 19 January 2017
We are excited to announce that we will be running a slightly different Bristol Tidal Energy Forum on 19 January 2017. For this event, we will be teaming up with Renewable UK to bring the industry together for an informal networking evening, kindly hosted by Burges Salmon in their Bristol office. This will be a free to attend event and bookings will open later this year, but in the meantime, if you wish to make sure you are on the invite list, let me know by return.

Wave & Tidal 2017, Westminster, 23 February 2017
Wave and Tidal 2017, hosted by Renewable UK will bring the industry to the heart of Westminster, showcasing the sector’s innovation and the opportunity that wave and tidal offers the UK. The main theme will be the UK opportunity in the Ocean Energy Race. Leading developed and developing countries are competing to see who will be the first to capitalise on our global ocean energy resource, and reap the industrial benefits this offers. Find out more here.

Author: Kerry Hayes
Contact: [email protected]