UK CfD round backs 28 MW of tidal stream projects

Six tidal stream projects representing 28 MW of capacity have been successful in the UK’s sixth contracts for difference (CfD) allocation round, the results of which were announced today.

The projects, located across five sites, secured contracts at GBP 172 (USD 226/EUR 204) per MWh, 34% below the administrative strike price, in the auction, which again had a ringfence for tidal stream energy.

With the outcome of the latest auction the UK is on track to have over 130 MW of tidal stream capacity installed by 2029, trade association the Marine Energy Council (MEC) said as it highlighted the winning projects.

“These results represent an important step forward for the tidal stream industry. The UK is now on track to have over 130 MW of tidal stream capacity in its waters by 2029. These projects will provide entirely predictable renewable energy and a critical service to the UK energy system,” commented Richard Arnold, policy director of the MEC.

Arnold said the tidal stream ringfence has provided a clear route to market and called for maintaining and increasing the size of the ringfence in future rounds. The MEC is also urging the government to set a 1-GW deployment target for 2035.

SAE Renewables, meanwhile, said the newly awarded CfD will allow it to increase the size of the MeyGen 2 development by about 9 MW. SAE already secured contracts for 50 MW in the previous two rounds. This makes a 59-MW scheme, which is in addition to the 6 MW operational at the site.

SAE added it is in advanced non-binding discussions with global manufacturing and engineering firms to deliver the 59-MW project and will provide further updates as and when appropriate.

(GBP 1 = USD 1.313/EUR 1.187)

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