The UK’s wave and tidal energy industries say they will only be able to grow successfully if they get the right level of support from Government – otherwise Britain risks surrendering its world lead in marine energy.
The initial strike price for the first generation of tidal arrays should be set at £280-300/MWh, RenewableUK says. For wave technology, the initial strike price should be £300-320/MWh. “This will catalyse the marine energy industry, leading to economies of scale and learning through experience, which will lower the strike price for the second generation of arrays in 2018.” Meantime, under EMR, contracts would only last for 15 years – the report says this should be extended to 20 years to give investors an adequate return – otherwise the strike price would have to be higher.
“The wave and tidal energy industry has reached an exciting period as it moves from single device demonstrator projects to the first small proving arrays,” says Krohn. “However, there are significant hurdles that need to be overcome to ensure the sustained growth of the industry. It’s time to get real about the potential risks so that we can work with Government and others to find the solutions as early as possible.”
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