RenewableUK: Wave & tidal need route to market

RenewableUK has given evidence to the BEIS Committee on the cost-effectiveness of wind, wave and tidal energy, as part of the inquiry into the energy cost review conducted by Dieter Helm.

RenewableUK’s Executive Director Emma Pinchbeck told the Business, Energy and Industrial Strategy (BEIS) Committee that an energy system led by renewables is the lowest cost option for the UK.

Questioned by the Committee on how consumers can benefit from the rapid falls seen in the cost of renewables, Pinchbeck said: “Competitive auctions for CfDs are the best way to lock in low-cost energy for consumers, with offshore wind delivering cost reductions unprecedented in any other sector.”

When asked on how new and innovative technologies can be developed in the UK, Pinchbeck talked about the need for a path to market for tidal and wave energy technologies.

Pinchbeck said: “We also need to look at technologies where there is potential for cost reduction to compete in the market, where there is a global demand for those technologies, and where the UK has existing skills and resources. Wave and tidal energy are examples of those technologies – they need a route to market. The debate about the next round of energy policy for the 2020s has started.”

RenewableUK’s Executive Director highlighted the Helm Review’s failure to recognize the fact that energy policy can contribute to wider economic, industrial and regional development.

“New projects have brought investment in regions across the UK – with £18 billion more to come over the next 5 years. Those wider industrial benefits should be recognized. 90% of this investment is being spent outside the south-east of England, in areas where it’s needed most to create jobs. More than 50% of RenewableUK’s members are supply chain companies and we’re exporting worldwide,” said Pinchbeck.

Pinchbeck also noted that while the review is focused on future, there are actions which could be taken now to reduce costs and provide certainty, calling for the government to take another look at onshore wind, and for clarifications on how the £557 million of funding for pot 2 CfD auctions is going to be spent.

RenewableUK is a trade and professional body for the wind, wave and tidal energy industries in the UK.