According to the latest statistics released by OEE, new revenue support at national level is boosting the wave and tidal power outlook, despite low market visibility in the past that is still impacting deployment figures in 2023. Some 137 MW of tidal and wave energy projects will seek deployment in the next five years thanks to EU funding and national revenue support, prompting several energy majors to enter the field as investors or partners into projects, priming the sector’s industrialisation.

France and the UK – two of the leading tidal markets globally – have now implemented per-kWh support for tidal farms, increasing the current tidal pipeline to 127 MW over the next five years. ‘This is a major step forward, but the continuation of the UK CfD [contracts for difference] ringfence and the implementation of the commercial tidal tenders announced by French President Macron are vital to cement the industrialisation of the sector,’ warns the trade body.

‘Wave energy is reaching high levels of technological readiness, as demonstrated by private investments into current projects. Unwavering EU funding helped improve full-scale prototypes and spurred the first pilot farms. However, wave energy will ultimately need the same kind of national revenue support as wind, solar, and now tidal to become a new European industrial success story,’ it continues.

The latest statistics show that market visibility at a national level coupled with technological progress attracted an unprecedented level of interest from the private sector, with major energy players building their own ocean energy technologies or partnering up on existing projects. Reported private investments into the sector in 2023 also increased significantly – up 75%.

Commenting on the findings, Rémi Gruet, CEO of Ocean Energy Europe, said: ‘Revenue support at national level creates bankability for projects and market visibility for investors. It is the main driver for private investments… Coupled with EU-level investment support – still needed for pilot and pre-commercial projects – it is kick-starting the industrialisation of the sector.’

He continued: ‘The CfD ringfence for tidal in the UK needs to be maintained, and the commercial calls for tidal energy announced by President Macron now need to be enacted. Revenue support for wave [power] needs to be put forward, especially in Portugal, Spain and Ireland. This will ensure investors keep putting projects in the water, reduce costs, and make ocean energy into the home-grown industry it can be.'

Noting the ‘great progress towards commercialisation’ that the marine energy sector made in 2023, Claire Mack, Chief Executive of Scottish Renewables, remarked: ‘Our world-leading marine energy industry will provide a predictable, low-carbon energy source and will play a key role in in delivering clean power to our future energy system. The latest statistics released by Ocean Energy Europe show clearly that the UK’s marine energy industry has a bright future, and it is encouraging to see the projects we have in development making such substantial progress towards commercial deployment. We have high hopes that a significant number of these projects will be successful in Contracts for Difference Allocation Round 6, the results of which will be announced later this year.’

The UK government recently raised the maximum price that tidal projects will be able to receive in this year’s renewables auction by 29%, from £202/MWh to £261/MWh. The maximum strike price was also increased by 66% for offshore wind projects, to £73/MWh, and by 52% for floating offshore wind projects, from £116/MWh to £176/MW; while that for geothermal projects was increased by 32% (up from £119/MWh to £157/MWh) and for solar by 30% (from £47/MWh to £61/MWh). The move was driven by a lack of interest shown in by the offshore wind sector in the 2023 auction round, which submitted no bids at all as the £44/MWh strike price was not deemed high enough to make projects financially viable.