Six tidal stream energy projects, with a combined capacity of 28 MW, have secured contracts in the UK’s sixth Contracts for Difference (CfD) allocation round. The projects, spread across five sites, won contracts priced at GBP 172 per MWh, which is 34% lower than the administrative strike price. This success is attributed to the auction’s continued support for tidal stream energy, reinforced by a dedicated ringfence for the technology.
The UK’s Marine Energy Council (MEC) noted that these outcomes are significant, as they push the nation towards installing over 130 MW of tidal stream capacity by 2029. The projects included in this round are distributed as follows: HydroWing in Wales (10 MW), MeyGen in Scotland (9 MW), Seastar in Scotland (4 MW), Magallanes in Scotland (3 MW), and Ocean Star Tidal in Scotland (2 MW).
According to Richard Arnold, the MEC’s policy director, the results represent a substantial step forward for the tidal stream industry. He emphasised that tidal energy offers a predictable and renewable source of power, critical to the UK’s energy future. Arnold further advocated for expanding the ringfence for tidal stream projects in upcoming CfD rounds and urged the government to target 1 GW of tidal energy capacity by 2035.
SAE Renewables, which operates the MeyGen project, announced that the newly secured CfD will allow it to expand the MeyGen 2 development by an additional 9 MW. With this, the total project capacity will reach 59 MW, adding to the 6 MW already operational at the site. SAE is also in advanced discussions with global manufacturing and engineering partners to deliver this expansion, with updates expected in the future.
These developments highlight the growing importance of tidal energy in the UK’s renewable energy landscape, with significant progress made towards achieving large-scale tidal stream deployment over the coming years.
SAE Renewables Limited (LON:SAE) was founded in 2005 as a supplier of tidal stream turbines, SAE quickly grew to include development of tidal stream projects and is the majority owner of MeyGen, the world’s largest tidal stream energy project.
