A new report by the Offshore Renewable Energy (ORE) Catapult has identified ten technology innovations, subsea hubs among others, that could result in an 80% cost reduction in tidal stream energy, making it lower than current nuclear energy prices if successfully commercialized.
The ten technology innovations identified by the Tidal Stream Technology Roadmap report include subsea hubs, anchors for floating devices, controllers to optimize lifetime turbine performance, cable monitoring and tidal array optimization.
In an “optimistic” cost reduction scenario outlined in the report, the innovations were projected to support a reduction in tidal stream cost from the current £259/MWh to £50/MWh by 2035.
“Our new report demonstrates how and where cost reduction can be achieved through technology innovation, creating significant growth in the UK tidal industry,” said Simon Cheeseman , Wave and Tidal Energy Sector Lead at ORE Catapult.
“With rising costs and the need to adapt to a varied future renewable energy mix, we have identified key drivers in how tidal energy can reduce UK energy system costs by up to £600 million a year and play a full part in the net zero revolution.”
The identified technology innovations are said to support 1 GW of tidal stream being installed in the UK by 2035, in line with UK Marine Energy Council (MEC) recommendations.
The report also highlights that further research and development in technology innovation will fail to secure an accelerated project pipeline for tidal energy without appropriate policy support to boost continued deployment, and private investment to drive commercialization.
According to ORE Catapult, the report identifies the need for an increased ringfence for tidal stream energy within the UK Government’s Contracts for Difference (CfD) scheme and reforms to the CfD process to recognize non-price benefits generated by renewable energy projects, such as system integration and supply chain development, rather than focusing on lowest price bids.
To remind, the UK government has set a £10 million ringfence for tidal stream in this year’s renewables auction, representing a third consecutive year.
“The UK tidal energy sector has shown a strong pipeline of projects, through the Contracts for Difference scheme rounds 4 and 5. With over 90MW of potential tidal energy projects due to deliver projects across Scotland and Wales in coming years, there is a clear signal that tidal technology is moving towards a commercially viable future,” said Sue Barr , Chair of the UK MEC.
“Our ambitious UK target of 1GW of installed capacity by 2035 means it is imperative we can define the levers and strategies which can strengthen delivery of tidal stream technology into our energy system. The Tidal Stream Technology Roadmap is a much-needed report, setting out the value and scale of the tidal energy sector and quantifying the systems benefits tidal technology can provide. It also provides strategies for enhancing the reduction of tidal stream costs through innovation and collaboration.”
ORE Catapult recently concluded a study with Imperial College London (ICL) which showed that tidal energy has the potential to provide 11.5 GW to the UK energy system , 11% of the UK’s electricity demand, and tidal stream projects could contribute up to £17 billion to the UK economy by 2050.