Commons Sense

House of Commons · Westminster Hall

Marine Renewables: Government Support

07 December 2022 · 8 other contributors · 13,356 words

Opened by Alistair Carmichael Lib Dem Orkney and Shetland

Responding minister: Graham Stuart

ClimateScotlandWalesEnergy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Alistair Carmichael raised concerns about marine renewables: government support in Westminster Hall. A government minister responded.

Key points

  • MP appreciates 20 million ringfenced pot for tidal stream generation, unlocking 41 MW of clean energy.
  • Concern raised about future funding for European Marine Energy Centre (EMEC) as EU Interreg funding ends.
  • MP asks for indication on continuation of ringfenced pot for tidal stream generation in fifth CfD allocation round.

Key requests to Government

The MP asks for an indication from the Minister regarding the continuation of the ringfenced pot for tidal stream generation in contracts for difference allocation round 5. He also seeks a commitment to maintain investor confidence and expedite development processes to ensure the UK remains a leader in tidal energy. The Minister was asked to consider introducing a CfD innovation pot for emerging technologies and reducing the time between CfD award and project start dates. The question was also raised regarding whether tidal stream energy will continue to have ring-fenced funding in the fifth round of allocations, as it did in the fourth round. Additionally, there is an inquiry into adjusting the CfD scheme so that it can support renewable energy hubs containing multiple technologies.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Alistair Carmichael Lib Dem Orkney and Shetland

The MP appreciates the Government's decision to introduce a £20 million ringfenced pot for tidal stream generation, which has unlocked investment in four projects totalling 41 MW of clean energy. However, he expresses concern over the future funding sources for the European Marine Energy Centre (EMEC), as Interreg funding from the EU is ending and new support mechanisms are unclear. He highlights EMEC's role in supporting marine energy development and its potential to support thousands of jobs by 2030 and 14,500 by 2040. Wales has significant marine energy potential, with a coastline of 2,120 km and an estimated marine energy capacity of at least 6 GW. The Swansea bay tidal lagoon and the Ynys Enlli tidal project are examples of projects driving economic development. Nova Innovation is concerned that slow route to market for marine technology projects due to delays in securing contracts for difference (CfDs) and obtaining consent, which hinders technological advancement.

Other contributors (8)
  • Alan Brown SNP Clydebank and Milport

    I thanked the right hon. Member for bringing forward the debate, agreeing that tidal stream is even better value for money than nuclear due to its 15-year concession compared to Hinkley Point C's 35-year contract. Supports the need for continued Government backing for marine energy, highlighting the success of the European Marine Energy Centre in Orkney and Shetland. Emphasises the importance of retaining EU funding schemes through UK Government initiatives. Advocates for further investment in supply chain development and export opportunities to support tidal stream projects across the UK. He argues that if too much money is invested in nuclear power, it leaves less room for renewable energy sources to come online.

  • David Duguid Con Berwickshire, Roxburgh and Selkirk

    I congratulated the right hon. Member on introducing this important debate, agreeing that oil and gas companies have a vital role to play in the energy transition with their technologies, expertise, and capital. Asked the hon. Member for Orkney and Shetland whether marine energy has the potential to be an exportable commodity, comparing it to how offshore wind is for Denmark.

  • Jim Shannon DUP Strangford

    Jim Shannon praised the potential of Strangford Lough for tidal energy projects, highlighting a successful pilot scheme that started in 2008. He mentioned the SeaGen turbine technology which produced 150 kW of electricity to the grid and generated 5 GWh of tidal power by September 2012. Shannon expressed disappointment at the lack of progress since then and urged for further development, suggesting it could supply up to 10% of the UK's energy within a decade. Thanking the Minister for his response, he requests a visit to Strangford Lough in Northern Ireland to showcase marine energy potential and discusses the need for direction from Westminster.

  • Kerry McCarthy Lab Bristol East

    The MP discussed the importance of marine renewables, highlighting several projects across the UK such as the Blue Eden project in Swansea and the Mersey tidal power project. She emphasised the need for Government support to expedite the roll-out and noted concerns about environmental impact and grid connection delays.

  • Liz Saville-Roberts PC Dwyfor Meirionnydd

    Acknowledging the Minister's understanding of marine energy potential for levelling up, she asks about the national grid improvements in Wales critical to increasing generation there.

  • Margaret Ferrier SNP Rutherglen and Hamilton West

    I was delighted to visit the European Marine Energy Centre in Orkney, highlighting its importance for delivering cheaper, greener energy. I questioned whether this research could be vital for delivering affordable energy to Scottish homes and businesses amid the energy price crisis. Asked the hon. Member for Strangford to speak about the benefits of tidal energy research in Strangford Lough, a location optimal for such projects due to its geographical features.

  • Richard Graham Con Richmond Park

    Congratulated the right hon. Member for Orkney and Shetland on securing the debate and praised BEIS for recognising the value of marine energy, noting its contributions to domestic energy security, community sustainability, and green job creation. He highlighted the need for a continued pipeline of opportunities to stimulate manufacturing scale and innovation research, proposed reducing hidden costs through process reform, suggested levelling up support for English bids in CfD projects, and mentioned considering new ideas on tidal lagoons. He highlighted the importance of focusing on specific actions the Government can take in the next round of contracts for difference to help reduce costs in marine energy sectors still in early stages. Mr Graham asked Mr Hobhouse to pursue with Marine Scotland the delays in processing marine energy project applications and requested an acceleration of these processes. The Minister is right about the challenge for marine energy industry in delivering scalability, which requires certainty that 2021 will not be a one-off but part of an ongoing series of contracts.

  • Wera Hobhouse Lib Dem Bath

    Ms Hobhouse expressed concern over the UK's reliance on fossil fuels and the need for rapid diversification of clean energy sources, including hydropower and tidal energy. She highlighted that weak grid infrastructure is a significant barrier to renewable energy developments and called for reforms to Ofgem's remit. Asked the hon. Lady briefly if she would give way.

Government Response

Graham Stuart

The Minister thanked all participants for their contributions and congratulated the right hon. Member for Orkney and Shetland on securing the debate. He praised the British energy security strategy, which aims to explore renewable technologies including tidal power. The Government established a £20 million budget for tidal stream developments in AR4 pot 2. The contracts for difference scheme has helped the UK move from less than 8% of electricity from renewables in 2010 to over 40% today. Ministers want to maximise economic benefits and maintain support for climate action, as well as ensure industrial capability can export and bring prosperity globally. The Government are proud that AR4 saw four tidal stream projects win contracts at £178.54 per MWh, totalling 40 MW. Parameters of allocation round 5 will come out this month with more detailed criteria in March. The UK remains the world leader in tidal stream technologies, and over £175 million has been invested since 2010 to support R&D and development. EMEC on Orkney is Europe's foremost testing centre for marine energy. The Minister is keen to avoid British research being turned into billion-dollar businesses elsewhere and wants development to happen in the UK.

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