WAVE and tidal power could be worth tens of billions to the UK economy, according to research published yesterday.
The report is by the Offshore Renewable Energy (ORE) Catapult, the UK body supporting innovation and rapid commercialisation in offshore wind, wave and tidal technologies.
Their research highlights that the strategically important market could be worth around £76bn to the UK economy cumulatively by 2050.
Scotland is acknowledged as a world leader in both tidal and wave energy development, but the report states that funding for first arrays and technology proving has become less certain as investors have been either unwilling to spend, or have been pulling out of the market due to lack of clarity on future investment return and timing.
The report states: “More investment from both the public and private sectors is needed to get the first tidal arrays to financial close, and drive the wave industry along the path to commercial readiness – it is estimated the tidal industry may need upwards of £100 million and the wave industry almost double that.”
According to ORE Catapult, with an expected output of 100MW per year in the UK from 2021-22, and a realistic share of a growing global market, the UK tidal stream industry could generate a net cumulative benefit of £1.4bn by 2030, consisting of £1.6bn GVA from the domestic market and £1.1bn GVA from exports, offset by £1.3bn of revenue support.
This would support a total of almost 4000 jobs by 2030 and 14,500 by 2040. Assuming a 10-year lag behind tidal stream, wave energy will also add a net positive contribution to the UK economy of £4bn by 2040.
The report claims this would also support a total of 8100 jobs by 2040 and adds that 50 to 60% of the economic benefit is expected to be generated in coastal areas – many of which are in need of economic regeneration – adding to the figures quantified in the report.
Significant cost reductions are expected in the near-term as the industry takes the step from pre-commercial arrays to commercial projects.
Among other suggestions, ORE Catapult said there should be greater coordination between private and public sector investors. They also outlined a potential role for government in underwriting debt finance for the industry.
Commenting on the report, ORE Catapult’s strategy and commercialisation director, Stephen Wyatt, said: “Wave and tidal technologies represent a vital part of our future renewable energy mix in terms of the social and economic benefits they bring, but sector funding has reached a critical juncture and it is vital we act now in order to bolster this strategically important market for the UK economy.”
Hannah Smith, senior policy manager at Scottish Renewables said: “This landmark report clearly demonstrates the enormous potential of our wave and tidal energy industries – should they be able to access the right support from Government.
“Marine renewable energy is not only a valuable source of clean electricity, helping us meet our carbon targets, but can bring diverse benefits to our wider economy too.
“This report shows that with even modest global deployment the sector could rapidly reduce its costs, drive economic growth in rural communities and export around the world.
“What we now need is for government and industry to work together to enable projects to go forward, capture learning from projects and deliver the benefits of wave and tidal technologies.”
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