RenewableUK, Britain’s largest wind and marine energy trade association, has welcomed the Government’s announcement of £20 million funding from the Low Carbon Innovation Fund to develop the wave and tidal energy industry

· Renewable energy industry welcomes first step, but urgently needs more funding

Advertisement

· Wider package of measures essential for marine industry grow – including 5 ROCs

· Britain’s position as world leader in jeopardy without further funding

However, RenewableUK warns that this amount is insufficient if Britain wishes to secure its position as the world leader in marine energy. Other measures are urgently needed, including a further £60 million funding from the Green Investment Bank, support from new regional enterprise zones, and a guaranteed 5 ROCs per MWh, to ensure this nascent industry is financially viable.

Maria McCaffery, Chief Executive of RenewableUK, said: “We want to work with the Government to ensure that the extraordinary innovations Britain has achieved in this dynamic new industry are not lost to our foreign competitors. RenewableUK is calling for the Department of Energy and Climate Change to take the lead on this, supported by the Department for Business, Innovation and Skills, and the Treasury.”

Overall, the first generation of marine energy projects is likely to cost £80 million per 10 MW scheme, and we need at least 3 or 4 projects to drive costs down and achieve the best technical solutions to maintain our premier global position in this field. So £20 million is a good start – but it’s only a drop in the ocean”.

RenewableUK notes that when the coalition government was formed in May 2010, the Prime Minister David Cameron said he wanted it to be “the greenest government ever”. Mr Cameron had already stated in 2008 that he wanted “to make Britain the force for clean, green, marine energy”, promising that “the next Conservative government will put rocket boosters behind this area of research.” We urge the Prime Minister to stand by those promises fully and unequivocally.

The Government’s current announcement that it will support two flagship projects with £20m – £10m per project – is exactly 50% of the support government could offer under EU state aid rules.

With additional support measures it risks leaving plans to deploy at least 40MW of marine energy projects high and dry, at a time when the US Government has just ratified plans to invest $50m in marine energy in 2012.

Announcement from our Chairman, David C BarclayThe World Renewable Energy Association are delighted to announce the launch of a brand-new initiative exclusively for its members. The Renewable Energy Finance Hub has been launched following the largest survey undertaken with UK businesses conducted by WoREA in conjunction with the UK Government and its partners. Reduce your businesses carbon footprint today and begin your journey towards net zero!