Carmichael responds to further contracts for tidal stream energy and Aberdeen GB Energy HQ
Orkney and Shetland MP, Alistair Carmichael has today spoken in Parliament following the announcement of the latest round of renewable energy auctions including six new tidal stream energy projects, calling on ministers to commit to a 1 gigawatt target for tidal energy deployment. Mr Carmichael has also responded to reports that GB Energy, the government’s new green energy investment company, will be based in Aberdeen, calling the move a “no-brainer” but “welcome”.
The UK government has announced the results of Allocation Round 6 (AR6) of the contracts for difference (CfD) renewable auction, with six tidal stream projects securing contracts to deliver 28 MW of capacity, with a UK total of over 130 MW of capacity expected to be operational by 2029.
In March, the UK government initially set a £10 million ringfence for tidal stream in this year’s renewables auction. This amount was increased to £15 million in July.
According to recent research by Offshore Renewable Energy Catapult and Imperial College London, tidal energy has the potential to provide 11.5 GW to the UK energy system, 11% of the UK’s electricity demand, and tidal stream projects could contribute up to £17 billion to the UK economy by 2050. Current projects have over 80% of their supply chain content sourced domestically.
Speaking in the House, Mr Carmichael said:
“If, as the Secretary of State says, he wants to offer a line of sight for industry, can I say to him that he should look more closely at the opportunities that come from the development of tidal stream – particularly through the creation from the ground up, which is always easier than recovering one that has already gone overseas.
“That line of sight has to go in both directions and that is why developers in tidal stream energy are asking the government to set a 1 gigawatt deployment target. Will he listen to these representations now, and act on them?”
Responding, the Secretary of State for Energy Security and Net Zero, Ed Miliband MP said:
“When I came into office and I was examining issues around Pot 2 [of the Contracts for Difference funding], which covers tidal, I was very keen to make sure that we increased the tidal minimum, which we did by 50%, and I think these are important discussions to continue.
“There is a dilemma here, which he will know, which is that tidal remains relatively expensive, but the point made by tidal developers is that many technologies remained expensive until they were deployed at scale. These are hard questions because they are questions about value for money, but I think they are important discussions that my department needs to have.”
Reacting after the exchange, Mr Carmichael said:
“I am glad that the Secretary of State committed to further examination of these issues but I hope that action is also going to be forthcoming. There have been positive results in the rollout of tidal stream technology in recent years but we cannot afford to be complacent.
“If we are not ambitious enough in our support then other countries are ready to take the initiative and the supply chain benefits that we currently enjoy. That is where a clear 1 gigawatt target and further increases in ringfenced investment are so important.”
On reports GB Energy is to be headquartered in Aberdeen, Mr Carmichael added:
“Reports today that GB Energy will be based in Aberdeen are of course welcome, even if it is something of a no-brainer on the part of the government. It is only right and proper that the North of Scotland plays host to this sort of organisation.
“It is still early days and we shall have to wait and see how effective GB Energy will be in driving investment where we need it. Even so, the economic and transport links between Aberdeen and the Northern Isles – and our shared role in energy generation past, present and future – make this a positive sign for the isles and for green growth here.”