Abstract
As we near the midpoint of this critical decade for climate action, the UK can look back and recognise a sizeable shift in the national effort to achieve a Net Zero energy system, and specifically, observe the increase in momentum now gathering behind the ocean energy sector. With the UK’s new Labour Government committed to delivering their Clean Power 2030 Plan, which promises that the UK will generate at least 95% of its electricity from clean sources by 2030, there is now a serious ambition for the UK to rapidly transition towards a low carbon energy system. Therefore, with this opportunity in mind, it is more important now than ever to fully understand the role that a commercial UK ocean energy sector can play in helping to achieve this future decarbonised energy system. With an increasing number of ocean energy projects being deployed in British seas, the results of decades worth of innovation funding and sector development are beginning to be realised. Alongside this, there is a growing understanding of the additional socio-economic benefits that the sector can bring to the UK, including high-value jobs in coastal communities; regional and national boosts to GVA; and a stake in strengthening our own energy security. Reflecting this, the role of the funding and innovation programmes that will be required to underpin the sector’s continued development are enjoying increasing prominence within the national policymaking landscape.
Over the course of 2024, the UK has provided continued support to the ocean energy sector by setting a third consecutive ringfence for tidal stream within its flagship Contracts for Difference (CfD) market support mechanism. To date, contracts have been awarded for over 120 MW of tidal stream projects, the largest such allocation in the world. Coupled with the sustained support offered to wave energy technology developers via Wave Energy Scotland’s world-leading innovation programme, the ocean energy sector has the potential to play a substantial role in the national energy mix over the coming decades.
However, despite the increase in momentum that is helping to drive the advancement of the UK’s ocean energy sector, there remains a need for increased awareness of the potential challenges. A growing ocean energy sector will require a step-change in the capabilities and capacities of our domestic supply chains, the development of which is vital to ensure that the GVA and jobs associated with the deployment of these devices is retained within the UK. Additionally, there is still a requirement for the sector to demonstrate sustained innovation as it chases the cost-reductions required for wave and tidal stream devices to compete with more established renewable energy technologies. Finally, the sector must continue to emphasise the wider socioeconomic benefits that a commercial ocean energy sector can bring to the UK economy, to help justify its place in the future energy mix.
These challenges are far from insurmountable and should be met with the use of coordinated policy programmes, clear government ambitions and sustained innovation funding. With the largest pipeline of tidal stream projects in the world now on the immediate horizon, coupled with the progress made by the wave energy sector, the UK is well-positioned to establish itself as the nation leading the adv