Proposal for wave and tidal support

The British Wind Energy Association has proposed a new £130 million funding mechanism to support wave and tidal technologies.

The renewables innovation review said that a gap in Government funding needs to be plugged if technologies are to progress from research to wider pre-commercial development (ENDS Report 350, pp 31-33 ).

The BWEA commissioned consultants Climate Change Capital to interview device developers and the wider electricity industry and design a suitable support mechanism. They recommend a payment of 10p/kWh for the first 50MW of wave and tidal devices installed for five years. This would supplement payments under the renewables

obligation, giving a total reward for successful generation of around 15p/kWh - equal to existing incentives in Portugal.

Developers would also receive capital grants to cover routine expenditure such as grid connection, and research and development would continue to be available for other designs "at or above its past levels of £15 million over several years". The package would cost the Government £130 million over five years.

The Renewable Power Association is developing an alternative proposal to use surplus money from the Non Fossil Fuel Obligation to give marine renewables extra support.

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