Rochdale MP, Tony Lloyd, is demanding that the Government provides a ‘ring-fenced pot’ in the upcoming Contract for Difference power generation auctions in order to support the development of tidal stream energy. 

Tony said, “We have a leading role in marine renewables in the UK. In the month of COP26, we had the chance to build on that lead and invest in the green technologies of the future.

“Prime Minister Johnson has said he would look again at putting proper support behind tidal stream. The letter that I have written, along with my Parliamentary colleagues, holds his feet to the fire.

“This is an issue which effects communities across the country and across ideological divides. Ring-fenced support would not only deliver the ‘home grown, sovereign energy systems’ the Government says it is seeking to deliver, but also demonstrate the UK’s strengths in innovation and leadership in tackling climate change.

“It will benefit both our economy and our environment. Now is the time for the Government to take the next step.”

The auctions are part of the government’s fiscal policies to support the commercialisation of green energy technologies such as offshore wind, and yet despite the UK’s world-leading position in tidal stream energy development, these technologies are not currently included in the Government’s draft framework for the next auction, which is to be finalised at the end of November. MPs from across the House of Commons joined the call to change course ahead of a deadline at the end of this month.

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Note to Editors:-

• Full text of letter and signatories below:

Dear Prime Minister,

We want to thank you for your commitment during your statement on COP26 this week to look again at the issue of a ring-fenced pot in the upcoming Contract for Difference auction for the development of tidal stream generation.

The development of tidal stream generation has the potential to make a significant contribution to the UK meeting our net zero targets. It could also be the catalyst for the creation of good quality engineering and manufacturing jobs in communities across the United Kingdom – especially in many of those communities about which you have spoken of your commitment to levelling up.

You may be aware that the UK Marine Energy Council has recently voiced their concern that “no minima has been allocated for marine energy within Pot 2… This puts wave and tidal stream bidders at a structural disadvantage when competing for the remaining £31m within Pot 2. The sector is requesting a minima of £24 million to also be applied to marine energy within Pot 2. This has already been provided for floating offshore wind and we are seeking parity of esteem and opportunity with this sector.”

As was noted during the exchanges on your Cop26 statement, this is a matter of some urgency. The deadline for the creation of such ringfenced funding within the CfD auction is the end of the month. If we fail to meet that deadline then it will not end the development of tidal stream renewables – but we fear that it will spell the end of the lead that the United Kingdom currently holds in developing these technologies. If we make the relatively minor changes required, however, then the sector has the potential to deliver a predictable, clean, domestic energy source, creating green jobs the length and breadth of the UK.

Specifically, the sector has called for a shared 1GW target and a modest ring-fence for tidal stream within the current Contracts for Difference round. No new money is required, merely a small tweak to enable tidal stream to develop, scale-up and deliver.

A ring-fence for tidal stream energy would ensure that the industry is able to develop, up-scale and deliver these projects by offering a clear route to market. This is precisely the same opportunity that has been afforded to floating offshore wind, which enjoys a ring-fenced budget of £24m from the available £55m in Pot 2.

Ring-fenced support would not only deliver the ‘home grown, sovereign energy systems’ the Government is seeking to deliver but also demonstrate the UK’s strengths in innovation and leadership in tackling climate change.

We hope that with your support, we will be able to make some progress on this issue. It would be a great signal for you to send to our green industries and the wider world as our chairing of COP26 continues. 

We look forward to your response.

Yours sincerely,
Alan Brown MP, Alistair Carmichael MP, Allan Dorans MP, Andrew Gwynne MP, Angus MacNeil MP, Ben Lake MP, Bob Seely MP, Brendan O’Hara MP, Caroline Lucas MP, Christine Jardine MP, Daisy Cooper MP, Deidre Brock MP, Dr Philippa Whitford MP, Ed Davey MP, Geraint Davies MP, Ian Murray MP, Jamie Stone MP, Layla Moran MP, Liz Saville-Roberts MP, Margaret Ferrier MP, Mohammad Yasin MP, Munira Wilson MP, Neale Hanvey MP, Paul Blomfield MP, Paula Barker MP, Rebecca Long-Bailey MP, Sarah Green MP, Sarah Olney MP, Simon Fell MP, Stephen Crabbe MP, Tim Farron MP, Tony Lloyd MP, Valerie Vaz MP, Wendy Chamberlain MP, Wera Hobhouse MP, William Wragg MP