Immense progress has been made in recent years, but the timeline, costs, and regulatory hurdles for developing offshore renewables projects remain significant.
Ensuring that technologies developed in the UK benefit the UK, while capturing a share of a growing global market, is no mean feat, but there are reasons to be buoyant.
It is our understanding that the implementation of the Labour government’s flagship policy, GB Energy, will help to address the above challenges head on.
By complementing ambitious goals with concrete policies, GB Energy can transform the ocean energy landscape, making these technologies not only more investable but also accelerating their time to market.
Driving private investment in ocean energy
One of the major barriers to private investment in ocean energy is the high cost and lengthy timelines associated with technology development and project deployment.
GB Energy has a unique opportunity to tackle these obstacles by providing matching capital for innovative projects and streamlining regulatory processes.
© Supplied by MoceanThis support would significantly enhance the investment appeal of ocean energy technologies, offering a more stable and predictable pathway for investors.
Additionally, setting clear deployment targets, such as those proposed by the Marine Energy Council, would signal strong government commitment, unlocking private investment and driving industry growth.
An energy source of strategic importance
Ocean energy has several value propositions that distinguish it from other renewables, including one unique advantage that should not be ignored – its power generation is more consistent and predictable than the likes of wind or solar, and studies show that diverse renewable systems reduce the need for energy storage solutions.
Moreover, the smaller-scale supply chain required for ocean energy, compared to offshore wind, allows for greater utilisation of UK ports and vessels, leveraging greater value for the domestic supply chain.
For now, the UK continues to lead the world in ocean energy technology, and now is the time to leverage this expertise.
Wave and tidal energy not only provide standalone power generation but also complement other renewables, improving the overall energy mix.
Neglecting these technologies risks losing out on the significant benefits they offer, including their potential to lower the levelised cost of energy in co-located wind-wave parks and enhance carbon capture, utilisation, and storage (CCUS) projects.
Ocean energy is not just another renewable option; it is a critical enabler of a more resilient and diversified energy system.
Policy recommendations to propel the sector
To fully realise the potential of the UK’s burgeoning ocean energy sector, specific policy changes are needed.
GB Energy should focus on supporting innovation within the wave and tidal sectors through direct funding and backing early-stage commercial projects.
Streamlining the timeline for project deployment and introducing market mechanisms within the Contracts for Difference (CfD) system – such as ringfences and non-price factors – would also accelerate commercial scaling.
Adopting a national model similar to Wave Energy Scotland‘s innovation funding framework could also provide essential support for bringing these technologies to market.
© Supplied by Mocean EnergySetting clear and ambitious deployment targets, such as 300MW of wave energy capacity by 2035, would send a powerful message to investors and stakeholders alike, reinforcing the UK’s commitment to leading the ocean energy revolution.
GB Energy has the potential to play a transformative role in advocating for such targets to be adopted as part of potential future iterations of the government’s Industrial and Net Zero Strategies.
By fostering innovation, attracting investment, and implementing forward-thinking policies, it can ensure that the UK not only remains at the forefront of ocean energy but also accelerates its path toward achieving net-zero targets.
In a competitive industry the clock is ticking though, and the time to act is now because the benefits of doing so will be felt for generations to come.
Cameron McNatt is the founder and managing director of Scottish wave energy firm Mocean Energy.
