With a collective ambition for the UK to be the world leader in harnessing the power of the seas, the Marine Energy Council (MEC) is the representative body for the country’s tidal stream and wave energy sectors. Its membership spans technology and project developers, test-centres and sites, academics, manufacturers and SMEs working in the marine energy supply chain.
The UK has over 30GW of untapped tidal stream and wave energy potential, enough to provide a third of its current electricity demand. This natural resource, combined with a strong maritime and offshore engineering expertise, means marine energy is strongly positioned to support the UK’s net zero transition, and the government’s ambition for the UK to be a clean energy superpower.
Finding a voice
Realising this potential requires an enabling policy and regulatory environment with industry and government working together. The role of the MEC is to act as a conduit for the sector and ensure that policymakers understand the scale of opportunity and barriers that need to be addressed. This is particularly important during an incredibly competitive period in the energy sector, as different industries and technologies vie for attention.
The Labour Party has brought into government an ambitious energy policy platform. Concurrently, the Review of Electricity Market Arrangements process, initiated by the previous government, is still in progress, which could have a significant impact on the nature of the market that in which marine energy will be deployed in the future. Additionally, new actors including the National Energy System Operator (NESO), Great British Energy, Mission Control and the need to accelerate leasing, licensing and grid connection timelines means the UK energy environment is under a necessary period of flux.
The MEC was set-up to be the voice for tidal stream and wave energy in the UK and ensure our industry positions and asks are heard in these debates, and by the key decisionmakers in Westminster and the devolved administrations.
Tidal Stream
Tidal stream energy is created by the gravitational relationship between the moon and sun on the earth’s oceans. It is therefore entirely predictable and can be harnessed by deploying turbines in areas with strong tidal currents. It is distinct, but often confused with, barrages or lagoons which require dams, barriers or fences in areas with high tidal heights.
The UK government took an important step towards realising its tidal stream potential when it set the first ringfence for the technology in its 2022 Contracts for Difference (CfD) renewable auction. Three successive auctions with a ringfence have seen over 120MW of tidal stream energy capacity contracted, with the first projects due to deploy in 2027. To contextualise this figure, globally only 20MW of tidal stream energy is currently in operation.
We want to work with work with Government to rapidly increase deployment of tidal stream technology. Unlocking economies of scale, volume and accelerating the learning process will be key in ensuring tidal stream energy can follow the same cost-reduction pathway taken by wind and solar. The Offshore Renewable Energy Catapult forecast that by 1GW of deployment tidal stream will be around £80/MWh and could fall below £50/MWh.
Scaling up requires increased ambition from Government. That’s why the MEC is calling for a £30m tidal stream ringfence in next year’s renewable auction.
A £30m ringfence will support the MEC’s ambition for UK supply chain content to be embedded in deployments here and around the world. Nova Innovation and Orbital Marine Power have both achieved more than 80% UK content for site construction in their most recent tidal stream installations. Nova Innovation have gone on to retain 98% UK content in its operational supply chain.
The UK has an opportunity to secure £17bn GVA to its economy through leading the growing tidal stream export market, whilst creating and sustaining green jobs and supply chains in coastal communities and beyond. For example, HydroWing, which secured contracts in the last two renewable auctions to deploy a 20MW array in Anglesey, is opening offices in north Wales to support delivery of the project.
An abundant resource
Wave energy is one of the world’s largest untapped energy resource with the potential to provide 29,500TWh annually, ten times greater than Europe’s electricity consumption. Harnessing just a fraction of this resource will support achieving net zero and deliver significant economic benefits for first movers.
The US recently announced it will invest US$112 million over the next five years to advance the commercial readiness of wave energy, in addition to establishing the grid-connected wave energy site PacWave in Oregon. China recently deployed its first full scale wave energy converter in Guangdong, and in Europe, Portugal and Spain both have ambitions targets to deploy 70MW and 60MW by 2030 respectively. Since 2023 Israel has been harnessing the power of its waves via ECO Wave Power’s EDF One Project.
In the UK, initiatives like Wave Energy Scotland (WES) have been tremendously successful in supporting wave energy converters move through technology readiness levels. Companies like Mocean Energy have benefitted enormously from this support and have gone on to work with the likes of Shell and Baker Hughes on the Renewables for Subsea Power project which demonstrates how wave energy can decarbonise offshore operations.
Wave energy also provides an opportunity to optimise and make better use of existing infrastructure assets through co-location with wind energy. Offshore wind arrays can have up to a 1km between each turbine. This this is an exciting opportunity for innovative deployment of wave energy converters. Research by the Offshore Wind Consultants found that in sharing assets wave and wind projects will reduce project costs by 12% for both technologies. This potential is being explored, not in the UK, but in Denmark by Orsted and Wave Piston.
There is currently no route to market for wave energy in the UK. It has not benefitted like tidal stream from a ringfence within the CfD auctions. The MEC is calling on the government to introduce a £5m ringfence in next year’s renewable auction to ensure the UK remains an attractive destination for wave energy investment. The government should also consider the approach taken by the Dutch government that has introduced a non-price factor into its renewable procurement process that incentivises deploying floating solar alongside offshore wind. This could be equally applicable for wave energy convertors.
Reducing costs
At the end of September 2024, the UK became the first G7 country to phase out the use of coal for electricity generation. Coal’s path to obsolescence was paved by government and industry working together, with the former providing clear policy and market signals to the energy industry. The marine energy sector is poised to play a key role in the UK’s future energy mix, by reducing systems costs, maximising offshore infrastructure and providing predictable renewable energy compatible with other forms of generation across the UK.
Deployment of just over 12GW of wave and tidal stream energy will save the UK £1bn in energy system cost. This is due to avoiding expensive peaking generation and storage necessary in a net zero energy system dependent on intermittent renewables.
We also have an opportunity to learn from Denmark’s leadership in wind energy. In the 1980s Denmark invested early in its wind energy industry, delivering projects with high levels of local content, and developing its domestic market. In the process it gained first mover advantage. Its wind sector exports generate over £7billion annually for the Danish economy.
The UK can replicate Denmark’s success in harnessing the renewable potential of its waves and tides, whilst creating green jobs, predictable low carbon electricity, supply chain growth and exporting British technology and expertise around the world.
Realising the potential in its seas will be key in making the UK a Clean Energy Superpower.
