The European Commission has included ocean energy among the technologies eligible under the 5% innovation target set by the EU Renewable Energy Directive. According to Ocean Energy Europe (OEE), a network of ocean energy professionals, the guidance issued on July 2, 2025, calls on member states to ensure that 5% of newly installed renewable energy capacity by 2030 comes from innovative sources.
Ocean energy technologies, such as tidal, wave, thermal, and salinity-based systems, generate renewable electricity from the sea. According to OEE, Europe leads globally in both the development and installation of such systems. The sector could meet 10% of Europe’s current electricity demand by 2050, while supporting 400,000 jobs, 100 GW of firm renewable power, and global export potential.
The guidance recognises the system-level benefits of ocean energy. As noted by the European Commission, wave energy continues to generate after wind drops and increases in winter when solar output falls. Tidal energy is fully predictable, which, according to OEE, can contribute to grid stability and lower overall system costs.
These benefits were modelled in the EVOLVE project, which found that even limited ocean energy capacity could reduce fossil fuel use, emissions, and system costs across Europe.
To unlock this potential, the European Commission recommends the use of ring-fenced revenue support policies targeted at scaling up innovative renewables. According to OEE, instruments such as feed-in tariffs and contracts for difference (CfDs) have proven effective in bringing wind and solar to commercial scale.
The UK has already awarded over 120 MW of tidal capacity through three CfD auctions dedicated to tidal projects, OEE said.
“Finally, the Commission is calling on member states to implement revenue support to scale up ocean energy. We know that revenue support works. Every time national revenue support is launched, farm projects thrive and raise private investment, as demonstrated with the tidal sector in the UK and France. It’s time for countries with rich wave resources – Ireland, Portugal, France and Spain – to follow the Commission’s advice and grasp this opportunity by launching CfDs for wave energy,” said Remi Gruet , CEO of Ocean Energy Europe.
“The ocean energy sector is ready to help member states meet the 5% innovative renewables target because the 2030 timeline is aligned with the sector’s project pipeline. The next 5 years are an opportunity to build a new industry made in Europe and bolster the continent’s energy security.”