UK awards 4 tidal stream projects in latest offshore energy round

The awards have been made as part of the UK government’s seventh auction for renewable energy projects held last year in which a record-breaking total of 8.4GW was awarded.

While developers are most likely optimistic, the tidal stream awards made amount to less than half of those given in 2023, when more than 50MW was awarded.

In the grand scheme of offshore energy the awards are tiny – among the four projects was awarded a total of 20.9MW, which is the size of a single next-generation wind turbine.

However the three Welsh projects will be installed in a single area – Menter Môn – that has been specifically earmarked for the purpose of trying out of tidal stream technologies. Designed for multiple arrays, the zone has the potential for up to 240MW of tidal generation across the 35km², according to the Welsh government via the Crown Estate.

“We believe that tidal stream energy has a significant role to play in delivering the UK’s Net Zero commitment,”said the Welsh Affairs Committee. ”There is strong evidence that the industry can deliver a Levellised Cost of Energy (LCOE) of £90/MWh in the 2030s when 1GW of capacity is deployed, with further reductions in cost possible beyond that.

In fact the strike price – that guaranteed to developers if the wholesale price drops below it – has risen by 39% for tidal stream since 2012, when it was conceived. It is now £265 (€304) per MWh compared with £190.19 in 2012.

In offshore wind it is a different story: much larger projects mean the strike price is much lower, ie £90.91 per MWh. This is still 54% higher than the 2012 strike price, which was £58,57.

The Morlais awards went to:

• Mor Energy GO3 Phase2 — Mor Energy Limited: Morlais (off Holy Island/Ynys Cybi, Anglesey/Ynys Môn, Wales): 5.5MW – Tidal stream project to deploy at the Morlais tidal stream zone off Anglesey, developed by QED Naval via its Welsh subsidiary Mor Energy.

• Morlais Tidal Tech GR1 W1.1 — Tidal Technologies W1 Ltd: Morlais (off Holy Island/Ynys Cybi, Anglesey/Ynys Môn, Wales): 3.0 MW – Tidal stream project at the Morlais zone; Tidal Technologies is developing its TT2 vertical-axis tidal turbine technology for array deployment. 

• Ynni’r Lleuad 3 — HydroWing Tidal Projects 2 Ltd (Inyanga Marine Energy Group): Morlais (Anglesey/Ynys Môn, Wales): 10 MW — HydroWing tidal stream array to be located at the Morlais tidal energy site in Anglesey, using HydroWing tidal technology.

In Scotland, Orbital Projects 10 Limited were awarded a 2.4MW tidal stream project using Orbital’s floating tidal turbine. The Orbital Marine Eday 5 project will be installed off Orkney.

Richard Parkinson, CEO of Inyanga Marine Energy Group, said: “This latest award allows us to focus on economies of scale and drive momentum towards delivering clean and stable power to the grid in Anglesey at an industrial scale.

“The award enables us to drive costs down while unlocking the investment necessary to make this project a reality. Our team is working extremely hard with our supply chain and investment partners as we ramp up manufacturing and move towards delivery.”

 “Today’s announcement is fantastic news for our tidal stream project at Morlais, cementing our position at the global forefront of tidal stream technology,” said Andy Billcliff, chief executive of Menter Môn Morlais.