The Crown Estate has announced the names of the successful bidders for the world’s first commercial wave and tidal leasing round, for ten sites in Scotland’s Pentland Firth and Orkney waters.
The 1.2 GW of installed capacity proposed by the wave and tidal energy developers for 2020, 600 MW each from wave and tidal, is four times the peak output of Dounreay power station - enough electricity to meet the needs of up to three quarters of a million homes.
The developers have signed agreements for lease with The Crown Estate to take forward the development of their wave and tidal energy installations, which will allow developers to enter the statutory consenting process for their sites with security of access to the seabed.
As owners of the UK seabed out to the 12 nautical mile territorial limit and over 55 percent of the foreshore, The Crown Estate has worked with partners the Scottish Government, Highlands & Islands Enterprise, Orkney Islands Council and the Highland Council, to maximise the benefits to the local area and the rest of Scotland from investments such as the offshore renewable energy programme.
The developers who have signed a total of ten agreements for lease are:
Wave:
* SSE Renewables Developments Ltd, 200 MW for Costa Head site
* Aquamarine Power Ltd & SSE Renewables Developments Ltd, 200 MW for Brough Head site
* Scottish Power Renewables UK Ltd, 50 MW for Marwick Head site
* E.ON, 50 MW for West Orkney South site
* E.ON, 50 MW for West Orkney Middle South site
* Pelamis Wave Power Ltd, 50 MW for Armadale site.
Tidal:
* SSE Renewables Developments (UK) Ltd, 200 MW for Westray South site
* SSE Renewables Holdings (UK) Ltd & OpenHydro Site Development Ltd, 200 MW for Cantick
Head site
* Marine Current Turbines Ltd, 100 MW for Brough Ness site
* Scottish Power Renewables UK Ltd, 100 MW for Ness of Duncansby site.
Scotland's First Minister, Alex Salmond, MSP, MP said: “Today marks a major milestone in the global journey towards a low carbon future, with the commercial-scale deployment of marine renewables set to power our economies and help safeguard the planet for generations to come.
“These waters have been described as the Saudi Arabia of marine power and the wave and tidal projects unveiled today – exceeding the initial 700 MW target capacity – underline the rich natural resources of the waters off Scotland.
“Leading international energy companies and innovators continue to be drawn to Scottish waters, which boast as much as a quarter of Europe’s tidal and offshore wind resource and a tenth of the continent’s potential wave capacity. Together with some 11 GW of planned offshore wind developments, these latest marine renewables projects show that Scotland is powering ahead in the development and deployment of clean, green energy.
“The Scottish Government is working with The Crown Estate, developers and key partners to support this rapidly-growing industry, to ensure communities such as those in Caithness and Orkney are well-placed to reap the benefits and to secure Scotland’s position as the green energy powerhouse of Europe.”
The Secretary of State for Scotland Jim Murphy said: “This is a welcome world-first for Scotland and I am happy to see the major steps being taken to harness Scotland’s wave and tidal energy. It is an extremely exciting time for renewables in Scotland and across the rest of the UK as we use more of our natural resources to generate our power.
“Scotland is naturally placed to make the most of this green revolution and we will continue to work with others to ensure the potential of Scottish waters, alongside wind power, is fully met.
“It is encouraging to see the number of successful bidders for the Pentland Firth and Orkney waters. There is no doubt we are set to see a significant expansion in the commercial development of wave and tidal energy in the near future and the UK government will continue to put a low-carbon and energy-secure future at the heart of its priorities.”
And Green MSP Patrick Harvie, added: "Scotland has hit the energy jackpot twice, first with North Sea oil, which has been in decline since 1999, and now with renewables like wave and tidal, which are the true key to this country's energy future.
"With appropriate government support, marine energy can start displacing out-dated generation systems like coal and nuclear, and we can build a world-leading industry in these areas.
"Earlier this year, Greens persuaded Scottish Ministers to establish a £10m fund to help wave and tidal power companies get their products to market. Investment now will bring costs down and allow the industry to become truly competitive internationally. It will also allow us both to meet our climate targets and export clean power to neighbouring countries."
Roger Bright, Chief Executive of The Crown Estate added: “I am delighted that today, in Wick and Kirkwall, we have announced the successful bidders for the world’s first commercial wave and tidal leasing round in the Pentland Firth and Orkney waters. The 1.2 GW of marine renewable generation capacity, 600 MW each from wave and tidal, is generating four times the electricity of Dounreay power station in its heyday. This shows the world that marine energy can produce significant electrical power and offer a real alternative to conventional power production.
“This announcement demonstrates the UK’s position as the leader in wave and tidal technologies. Through our experience and some of the best natural resources in the world we have been able to launch the first wave and tidal energy projects on a commercial scale. This emerging industry has a bright and promising future, with vast amounts of untapped energy in the seas all around us, and The Crown Estate looks forward to working with partners in Wick and Kirkwall to realise the area’s marine energy potential.”
A joint venture partnership between Aquamarine Power and SSE Renewables was one of the six to be granted exclusive development rights to an area of the seabed off the coast of Orkney as part of the world’s first commercial leasing programme for wave and tidal energy generation projects.
The partnership has been granted an agreement for a lease which gives them exclusive rights to develop the area for the proposed deployment of the first commercial farm of Aquamarine Power’s Oyster hydro-electric wave power devices in 2013.
The partnership will now work closely with The Crown Estate, Orkney Islands Council and other key stakeholders to obtain necessary consents for the phased deployment of the farm and to ensure the project is developed sensitively and with due consideration to the local environment and community.
The development area has the potential to see Oyster devices deployed in small clusters spaced over a stretch of coastline off mainland Orkney running from Costa Head in the north to Neban Point in the south-west. The proposed wave farm would have an installed capacity of 200MW and could provide enough energy to power around 190,000 homes.
The partnership between Aquamarine Power and SSE Renewables is part of an agreement between the two companies to develop up to 1GW of Oyster wave farm sites in the UK and Ireland by 2020 – the largest commercial agreement in the wave energy sector to date.
Martin McAdam, Chief Executive Officer of Aquamarine Power said: “The Crown Estate’s leasing round is a significant milestone for the marine energy sector and is a key step towards the industry’s commercialisation, enabling it to meet its full potential to deliver clean sustainable power as well as highly skilled long-term employment.
“Harnessing the power of the sea to produce clean energy will play a crucial role in our future energy security and in meeting the UK’s climate change objectives. Deploying Oyster on a commercial scale has the potential to generate millions of pounds for the Scottish and UK economy and to create hundreds of jobs on a local and national level.
“Aquamarine Power and SSE Renewables will continue to work in close consultation with the local community and key stakeholders to ensure the sustainable and responsible development of our proposed Oyster project.”
Stephen Wheeler, Director of SSE Renewables, said: “As the leading generator of renewable energy in the UK, SSE is committed to building on our existing portfolio to develop viable wave sites using industry-leading marine technologies.
“We believe our partnership with Aquamarine Power will not only deliver a significant contribution to the renewable energy mix but also enhance Scotland and the UK’s position as world leaders in marine energy. We look forward to continuing to work closely with The Crown Estate, statutory bodies and local communities to develop the site.”
Pelamis Wave Power Ltd (PWP), the Edinburgh based developers of the Pelamis wave energy converter, was named as the technology supplier for a further three major offshore wave energy projects in the world's first seabed leasing round off the north coast of Scotland.
Commenting on the three projects, with a cumulative capacity of 150MW, Chief Executive Officer of PWP, Neels Kriek, said: "The Crown Estate's process has set our industry on course towards delivering marine projects of utility scale, and PWP is delighted that both Scottish Power Renewables and E.ON UK endorsed our technology in their applications. We are proudly and uniquely aligned in our respective goals of delivering renewable energy through multiple commercial Pelamis projects in the next 5 to 10 years."
Kriek continued: "The challenges associated with the ambitions which have been set today are significant, and the team at PWP are energised to embrace these challenges to the benefit of E.ON UK, Scottish Power Renewables, our other customers and the UK low carbon economy objectives. I am confident that we are ideally placed with the significant support from the Scottish Government and DECC to translate todays announcement into a global success for the UK, Scotland and the sector."
PWP are currently in the final stages of building the first Pelamis P2 machine for E.ON at their manufacturing facility in Leith Docks. The machine is due to be installed at the European Marine Energy Centre (EMEC) in Orkney this summer to commence grid connected demonstration trials.
Lord Moynihan, the Chairman of PWP welcomed the announcement saying: "This marks a huge achievement for our sector, and we see it as a defining opportunity to build on our achievements to date.
“Politicians in Edinburgh and London have made real commitments to the wave and tidal sectors and the delivery of the Pentland Firth and Orkney Waters Round will see this commitment come to fruition as we expand the capabilities and industries to build and operate the technology at scale whilst generating low carbon renewable electricity."
Sandra McCaughey of Highlands and Islands Enterprise (HIE) welcomed the news, and added: "We very much look forward to working further with Pelamis Wave Power in developing their projects. It presents a real opportunity for the local supply chain and we will continue to work with local businesses to help them engage with the industry and bring new jobs into the area."
Colleague Calum Davidson, head of key sectors at HIE said: "This is a milestone in the journey of marine energy generation in the Pentland Firth and Orkney Waters, moving it from aspiration towards reality.
"Today's announcement will be of interest to energy providers across the world as the global search for a successor to hydrocarbon fuel accelerates.
"HIE has played an integral role in the many stakeholder relationships that have brought us to this point. After today's announcement, we will be working harder than ever to support the successful developers, as well as local suppliers, inward investors and local communities to develop the full potential that this emerging industry promises for Scotland."
Aimed at enabling stakeholders to plan their work programmes, HIE will this week publish a draft 'road map' - the first step in pulling together all the local partners' and stakeholders' plans and actions, such as grid connections, infrastructure and supply chain, needed for the growth of a world-leading marine energy industry in the Pentland Firth and Orkney Waters.
Mr Davidson explained: "This emerging industry is highly challenging but the rewards are potentially huge. It will require detailed co-operation between public agencies and between the private and public sectors to achieve the ambition we have set ourselves. This partnership approach will be absolutely vital to ensure that every part of the jigsaw is placed when and where needed, providing an industry path that will attract investors from around the world."
Tom Delay, the Carbon Trust chief executive, said of the milestone announcement: "Marine energy has a great future in the UK if we can get deployment at scale and if we can dramatically reduce costs.
“Pentland Firth has opened a massive commercial window for the marine industry to aim for, cementing the UK's leading position in the marine energy sector.
“Key to the long-term success of the Round will be proving the leading technologies over the coming years and successfully completing the innovation journey from demonstration to commercial deployment.
“It is vital we capitalise on the economic opportunity that this presents, which will require focussed support, funding and continual innovation to ensure Britain does rule the waves."
RenewableUK, one of the UK’s leading renewable energy associations, said that the Pentland Firth and Orkney Waters Strategic Area leasing round was an overwhelming success, which demonstrated the enormous potential of the UK’s marine energy resource and the wave and tidal energy sector.
Oliver Wragg, RenewableUK Wave and Tidal Development Manager, said: “The leasing round has exceeded all expectations by awarding 1.2 gigawatts (GW) of project leases, considerably up from the originally scheduled 700 megawatts (MW). This clearly demonstrates that the industry has now reached a stage where it is ready to deliver.
In order to facilitate the transition from research and development to scaling up and delivery, and in response to the Government’s Marine Energy Action Plan, RenewableUK has produced a key document published today “The Next Steps for Marine Energy.”
The document recommends that the government commits a minimum of £220 million in capital support for technology development over the next five years, with the aim of powering 1.4 million homes with marine energy by 2020, and producing an annual sector turnover of £900 million by 2030.
Peter Madigan, RenewableUK Head of Offshore Renewables, said: “RenewableUK’s report demonstrates that by investing now the Government can generate jobs and income in the long term. We have a once in a generation opportunity to build a world leading industry which will help ensure we meet our carbon reduction targets and deliver economic benefits. The industry is ready and the Government must act now.”
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irene maloumi, edinburgh around 1 year, 10 months ago