- REA welcomes Government’s announcement that it will provide £20 million per year in ring-fenced contracts for tidal stream projects as part of the upcoming Contract for Difference (CfD) round;
- REA has long campaigned for greater investment in tidal energy;
- Says the Government should also consider similar ring-fenced support to drive forward other less established renewable technologies.
The Association for Renewable Energy and Clean Technology (REA) has welcomed the Government‘s announcement that it will provide £20 million per year in ring-fenced tidal stream project support as part of the upcoming Contract for Difference (CfD) round, after years of campaigning by the REA for greater investment in tidal energy.
Tidal energy has the potential to be a very reliable source of generation, given the clockwork predictability of the tides. Including this in the UK’s low-carbon energy mix will make it easier to match supply with demand.
This fourth ‘allocation round’ of the Contracts for Difference Scheme will open on 13 December 2021. The Government will launch this auction process with the ambition of supporting up to 12GW low-carbon electricity capacity – more than the last 3 rounds combined.
However, while welcoming the new support for tidal, the REA says that the Government should also consider similar ring-fenced support to drive forward other less established renewable power technologies.
Frank Gordon, Director of Policy at the Association for Renewable Energy and Clean Technology (REA), said:
“Tidal power represents a huge potential for renewable energy in the UK, given our access to large tidal streams, and the REA have long campaigned for the Government to put support behind the technology to see it commercially delivered.
“The ring-fencing of £20m in the Contracts for Difference mechanism will help deliver major tidal projects in the UK that should in turn help drive the technology cost down and help further establish the market in the UK for tidal energy. This would replicate the success seen in our offshore wind sector.
“The Government should now also consider how similar ring-fenced funding could be used to drive forward other less established renewable technologies in the UK. For example, geothermal energy has a pipeline of shovel ready projects – if the Government provides the right support we could see this sector rapidly develop.”
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Notes to editors
About the Association for Renewable Energy and Clean Technology (REA):
The Association for Renewable Energy and Clean Technology (known as the REA) is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, power and the Circular Economy. The REA is a not-for-profit organisation representing fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.
For more information, visit: www.r-e-a.net