A new day, a new government - but what will this mean for the UK's push towards net zero?
As noted in my recent article about public funding for Ocean Energy in 2023, the previous government earmarked an annual investment of £30 million for tidal stream via the Contracts for Difference (CfD) scheme. According to some estimates, tidal stream could provide 11% of the UK's energy requirements, and would be a reliable contributor to a diverse renewable energy mix.
Is this level of funding for renewables, including tidal stream but also offshore wind and solar power, likely to continue under our new Labour government, and will we see other developing technologies, such as wave energy, receive ring-fenced funding through the CfD scheme?
I was encouraged while listening today to Sir Keir Starmer's first speech as Prime Minister, when he made explicit reference to this challenge, referring to "the opportunity of clean British Power, cutting your energy bills for good".
The UK Marine Energy Council recently set out 5 key actions for our new government to take in order to capitalise on the potential and expertise of the UK Ocean Energy sector:
- Increase the tidal stream ringfence to £30 million in CfD Allocation Round 6
- Set a 1 GW tidal stream target by 2035
- Set a 300 MW wave energy target by 2035
- Streamline and prioritize the consenting of marine energy projects
- Introduce innovation support for marine energy
The results of AR6 are due sometime after 19 July 2024, and it will be interesting to see whether there will be any surprises that may indicate the new government's approach to Ocean Energy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.