tidal energy in UK - UK Govt Climate Dept

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    UK Government policy -

    Future support for Tidal Energy

    Paul McCloghrieOffice for Renewable Energy Deployment

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    What does the future hold for

    marine energy?

    UK ambitions for tidal energy

    Key challenges for the future

    Engaging with the Government

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    Commitments

    We will introduce measures to encouragemarine energy.

    The Coalition: our programme for government

    The UK Renewables Roadmap (July 2011)

    Eight technologies identified as those with the greatest

    potential to help the UK meet the 2020 target, or offer

    great potential for the decades that follow.

    Marine energy (wave and tidal stream) identified as one

    of the eight volume delivery expected after 2020.

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    Ambition

    The UK Renewables Roadmap (July 2011)

    200-300MW (wave and tidal) deployed by 2020

    Technology Innovation Needs Assessment (Aug 2012)

    Deployment scenarios range from almost no marine

    energy to over 20GW in the UK by 2050.

    Cost of energy generated will need to reduce by 50-75%to around 100/MWh by 2025

    Successfully harnessing this energy has the potential to

    deliver over 75 TWh/y (which is over 10% of the UKs

    forecast electricity needs in 2050)

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    Costs of large scale generation in 2020

    Wind PV Biomass AD Marine Gas

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    Key Challenges - costs

    Energy Market Reform

    2017 Technology specific Contract for Difference

    Now:

    Income per MWh = Wholesale price + (ROC rate x ROC value)

    Under CfD:

    Income per MWh is fixed at point of signing contract

    Government support

    Wholesale price

    In

    comeperMWh

    Contract price

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    Key Challenges - costs

    Energy Market Reform

    2017 Technology specific Contract for Difference

    Mid 2020s Technology neutral contract auctions

    Trajectory of reducing revenue support

    By 2025, tidal energy will need to be competitive with

    other forms of generation < 100/MWh

    Going to need continued Government support to get

    there!

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    Engaging with Government

    Is cost of energy the only thing thats important ? - NO

    What are the extra advantages and disadvantages of

    tidal energy Predictable (both timing and power output)

    Provides UK jobs, growth, (exports?)

    Small visual impacts

    ????

    Which do the Government care about?

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    Engaging with Government

    Valuing the extra benefits

    Ministers and Government officials are generally not

    specialists - need a single comparator

    Need to be able to add up all the costs and benefits

    Which means

    Somebody has to convert all benefits into

    UK economy cash values

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    Engaging with Government

    Be realistic!!

    Cross party support will only survive while tidal power

    looks like a good investment. And cash is hard to come

    by.

    Think about what else Government can do to help

    PPAs

    Risk sharing

    Take advantage of programmes targeting growth

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    Summary

    Costs need to reduce rapidly 100/MWh by 2025(ish)

    Strong targeted Government support will be needed.

    Need to communicate tidal energys extra benefits

    And value these in simple (s) terms

    Think creatively about how Government can help while

    public spending is tight