Bids announced for 'Saudi Arabia' of marine power

The Crown Estate says today that it’s received multiple bids for wave and tidal energy projects in the Pentland Firth strategic area.

The deadline for the world’s first large-scale commercial wave and tidal energy leasing round was 15 May.

According to The Crown Estate, the number and range of both bidders and applications emphasises the importance of the Pentland Firth strategic area to the emerging wave and tidal sector:

• The Crown Estate received a total of 42 applications from 20 bidders for wave and tidal energy leases;
• Applications range from 10-megawatt demonstration sites all the way up to the highest band of 200- to 300-megawatt commercial sites;
• Applications came from organisations ranging from small developers through to multinational energy companies.

The Crown Estate is working on the Pentland Firth project in close partnership with the Scottish Government and Highlands and Islands Enterprise (HIE). Together, it says, the groups are committed to successful wave and tidal device deployment the will enable the Pentland Firth area to generat more than  700 megawatts of renewable power by 2020.

The Crown Estate plans to use option fees paid by developers and an equivalent investment from its own funds in to de-risk and accelerate the development of tidal and wave energy projects in the area. However, successful development will also depend on resolving a number of issues relating to the energy grid, consenting processes, supply chain and economic support for the project.

“The Pentland Firth has the potential to become the Saudi Arabia of marine power, and the vast potential of this area will deliver more investment, jobs and opportunities to communities in and around the Pentland Firth and Orkney, and benefit to the whole of Scotland,” said First Minister of Scotland Alex Salmond. “Scotland boasts a quarter of Europe’s wave and tidal resource, and we are leading the way in developing these technologies through the world’s only accredited wave and tidal testing centre, the European Marine Energy Centre in Orkney, and the Scottish government’s £10 million Saltire Prize — one of the biggest international government innovation prizes in history.”

“The level of developer interest in the Pentland Firth confirms both the potential of these waters and the confidence that companies have in the industry’s development,” said Sandy Cumming, chief executive of HIE. “HIE is committed to working with partners to develop marine energy generation and to securing the significant economic benefits it offers the Highlands and Islands.”

The Crown Estate will now carry out a detailed and confidential evaluation process of the bids to identify those that demonstrate the capabilities and commitment necessary to safely deploy wave or tidal energy devices in the Pentland Firth area. Negotiations with prospective developers will commence throughout the summer, prior to awarding agreements for lease.