Six tidal stream projects, with 28 MW in total capacity, have secured contracts in the UK’s Contracts for Difference (CfD) sixth allocation round.
The strike price for six projects across five sites has been set at £172/MWh. It represents a 34% saving against the Administrative Strike Price and is the lowest cost that tidal stream projects have been contracted at since the introduction of the ringfence.
The projects that secured contracts in AR6 are HydroWing – 10 MW in Wales, MeyGen – 9 MW in Scotland, Seastar – 4 MW in Scotland, Magallanes – 3 MW in Scotland, and Ocean Star Tidal – 2 MW in Scotland.
Scotland now has 83 MW and Wales 38 MW of contracted tidal stream capacity in the UK’s renewable auctions. There has still not been a successful tidal stream project contracted in England.
The UK has over 11GW of accessible tidal stream capacity, which when harnessed could provide over 11% of its electricity demand. Projects are being deployed with over 80% UK supply chain content spend.
“These results represent an important step forward for the tidal stream industry. The UK is now on track to have over 130MW 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.
“The tidal stream ringfence has provided a clear route to market, supporting the industry to grow, create jobs and secure investment into UK supply chains. Maintaining and increasing the size of the ringfence in future rounds will ensure the UK continues to lead in developing, deploying, and exporting tidal stream technology and expertise around the world,” said Richard Arnold, Policy Director of the Marine Energy Council.