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Marine Renewable Energy

Media Briefing

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This study, conducted by Climate Change Capital (CCC) for BWEA in early 2004, shows that the Renewables Obligation (the technology blind market based support mechanism for renewables in the UK) is providing the right long-term investment signals for the marine renewables industry, with the UK being the location of choice for the majority of companies surveyed. However, it also highlights a clear market failure, whereby the Renewables Obligation does not provide sufficient incentive for the levels of investment required in wave and tidal technologies over the coming years. This study, 'Into the Blue', therefore proposed a support scheme that is compatible with existing policy, maintains investor confidence and ensures additional support is temporary in order to allow the sector to develop towards commercialisation.

On the basis of this work and the conclusions of the DTI's Renewables Innovation Review, in August 2004 the UK Government announced the release of £50m support for wave and tidal energy over the next three years. Nevertheless, at the time of writing discussions around the distribution mechanism are still on going. UK Energy Minister Mike O'Brien has however stated that a decision will be made by Easter 2005.

Read a copy of the report: Into The Blue

Or read the BWEA press release