Big take-up for wave and tidal leases in Pentland Firth

The Crown Estate received a total of 42 applications from 20 bidders for wave and tidal energy leases. These applications range from 10 MW demonstration sites all the way up to the highest band of 200-300 MW commercial sites. Applications have been received from organisations ranging from small developers through to multi-national energy companies. The Crown Estate will use option fees paid by developers and an equivalent investment from its own funds in order to de-risk and accelerate the development of tidal and wave energy projects in the area. The Estate is planning to find further UK locations for future wave and tidal energy commercial leasing rounds, which may include further rounds in the Pentland Firth strategic area.

The Firth is well known for the strength of its tides, with speeds of up to 16 knots reported. The area has been called ‘the Saudi Arabia of tidal power’ and may be capable of generating up to 10GW, which is up to 25% of the estimated total capacity for the European Union.

A detailed and confidential evaluation process of the bids will now be carried out by The Crown Estate to identify those bids that demonstrate the capabilities and commitment necessary to safely deploy wave or tidal energy devices in the Pentland Firth strategic area. Throughout the summer negotiations with prospective developers will commence, prior to awarding agreements for lease.

The pre-qualification period ran from September to November last year and those organisations that passed the pre-qualification assessment went on to submit, via an online application portal, their tenders. This application process follows completion of a Strategic Environmental Assessment (SEA) assessing the potential for wave and tidal energy in Scotland by the Scottish government in 2007.