RenewableUK asks government to dig deep for wave and tidal sector
The renewable energy industry has today urged the government to bolster its financial backing of the wave and tidal power sector, after a new report found it has so far provided less than a third of the £120m it estimates is required to commercialise technology in the emerging industry.
Trade body RenewableUK will also today call on the government to allow the planned £3bn Green Investment Bank to provide funding for early stage marine energy projects when it starts lending later this year.
RenewableUK has this morning launched a marine energy State of the Industry report, which found the government has so far provided £38m in support to wave and tidal energy developers, far short of the £120m it argues is required to commercialise marine technology and overcome the barriers to large-scale deployment.
The industry predicts the sector will be worth £3.7bn to the UK by 2020, creating 10,000 jobs, but Maria McCaffery (pictured), chief executive of RenewableUK, warned both the Westminster and Scottish governments risked losing this investment to competing countries if it failed to step up current levels of support.
“An overly cautious approach could allow other countries to steal Scotland’s lead, so it’s vital that the Scottish and UK governments build on the good work they’ve already done by supporting the development of these industries, to ensure that we can retain our leading position globally,” she said.
“This will also give us an opportunity to secure a large part of the worldwide market by exporting our technology.”
The report also argued the Green Investment Bank (GIB) could provide vital support to early stage marine power, as every pound of public-sector investment would unlock £6 of private investment.
However, recent reports have suggested the GIB is not expected to invest in high-risk projects, such as early stage marine power.
David Krohn, RenewableUK wave and tidal development manager, said it was frustrating that the government had not yet made clear whether the GIB will lend to marine.
“One step the government could take is to allow the Green Investment Bank to support wave and tidal projects at an early stage,” he said. “It’s frustrating that ministers have not yet identified marine energy as a priority sector for the GIB.”
The UK has installed 7.665MW of wave and tidal energy and has a target to install 300MW by 2020, requiring investment of around £1.5bn.
The report also calls on the government to help boost investor certainty in the sector by providing greater clarity on the level of subsidies marine energy projects will enjoy after 2017 when the current Renewable Obligation funding mechanism ends.
Richard Dixon, director of WWF Scotland, said the report was a reminder of the need to boost investment in emerging renewable energy technologies.
“Scotland is the world leader in developing wave power and this technology has the potential to be of global significance in our efforts to tackle climate change, as well as offering the prospect of thousands of green jobs,” he said.
“At present the Scottish Parliament is investigating the achievability of the renewable energy targets in Scotland. In order to meet these, the right marine renewables in the right places will have a critical role to play in helping us reduce climate emissions as we phase out polluting fossil fuels and nuclear power.”
A spokeswoman for the Department of Energy and Climate Change (DECC) defended its investment record and said it planned to shortly open up a £20m fund to support wave and tidal power.
“We have already taken great strides to ensure we stay top of the world leader board through funding for this sector,” she told BusinessGreen. “Building on this, DECC will open a £20m scheme in the Spring to help progress the development of marine technology from the current large scale prototypes to bigger formations in the sea.
She added that the government was proposing to more than double the level of subsidy for wave and tidal technologies under the Renewables Obligation incentive scheme from April next year, and that there were plans to create marine energy parks in Scotland and Northern Ireland, similar to the South West Marine Energy Park launched by Climate Change Minister Greg Barker recently.
Trade body RenewableUK will also today call on the government to allow the planned £3bn Green Investment Bank to provide funding for early stage marine energy projects when it starts lending later this year.
RenewableUK has this morning launched a marine energy State of the Industry report, which found the government has so far provided £38m in support to wave and tidal energy developers, far short of the £120m it argues is required to commercialise marine technology and overcome the barriers to large-scale deployment.
The industry predicts the sector will be worth £3.7bn to the UK by 2020, creating 10,000 jobs, but Maria McCaffery (pictured), chief executive of RenewableUK, warned both the Westminster and Scottish governments risked losing this investment to competing countries if it failed to step up current levels of support.
“An overly cautious approach could allow other countries to steal Scotland’s lead, so it’s vital that the Scottish and UK governments build on the good work they’ve already done by supporting the development of these industries, to ensure that we can retain our leading position globally,” she said.
“This will also give us an opportunity to secure a large part of the worldwide market by exporting our technology.”
The report also argued the Green Investment Bank (GIB) could provide vital support to early stage marine power, as every pound of public-sector investment would unlock £6 of private investment.
However, recent reports have suggested the GIB is not expected to invest in high-risk projects, such as early stage marine power.
David Krohn, RenewableUK wave and tidal development manager, said it was frustrating that the government had not yet made clear whether the GIB will lend to marine.
“One step the government could take is to allow the Green Investment Bank to support wave and tidal projects at an early stage,” he said. “It’s frustrating that ministers have not yet identified marine energy as a priority sector for the GIB.”
The UK has installed 7.665MW of wave and tidal energy and has a target to install 300MW by 2020, requiring investment of around £1.5bn.
The report also calls on the government to help boost investor certainty in the sector by providing greater clarity on the level of subsidies marine energy projects will enjoy after 2017 when the current Renewable Obligation funding mechanism ends.
Richard Dixon, director of WWF Scotland, said the report was a reminder of the need to boost investment in emerging renewable energy technologies.
“Scotland is the world leader in developing wave power and this technology has the potential to be of global significance in our efforts to tackle climate change, as well as offering the prospect of thousands of green jobs,” he said.
“At present the Scottish Parliament is investigating the achievability of the renewable energy targets in Scotland. In order to meet these, the right marine renewables in the right places will have a critical role to play in helping us reduce climate emissions as we phase out polluting fossil fuels and nuclear power.”
A spokeswoman for the Department of Energy and Climate Change (DECC) defended its investment record and said it planned to shortly open up a £20m fund to support wave and tidal power.
“We have already taken great strides to ensure we stay top of the world leader board through funding for this sector,” she told BusinessGreen. “Building on this, DECC will open a £20m scheme in the Spring to help progress the development of marine technology from the current large scale prototypes to bigger formations in the sea.
She added that the government was proposing to more than double the level of subsidy for wave and tidal technologies under the Renewables Obligation incentive scheme from April next year, and that there were plans to create marine energy parks in Scotland and Northern Ireland, similar to the South West Marine Energy Park launched by Climate Change Minister Greg Barker recently.
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