The Anonymous Widower

Orbital Marine Power Awarded Two CfDs As Part Of UK Government Renewable Energy Auction

The title of this post, is the same as that of this news item on the Orbital Marine Power web site.

This is the heart of the news item.

Orbital, the renewable energy company focused on the development and global deployment of its pioneering floating tidal stream turbine technology, has been awarded two contracts for difference (CfDs) in the UK Allocation Round 4 (AR4) process.

This is a significant milestone in the company’s growth, with these CfDs underpinning the delivery of multi-turbine projects in Eday, Orkney.

Capable of delivering 7.2MW of predictable clean energy to the grid once completed, these Orbital tidal stream energy projects can power to up to 7,200 homes, supporting the UK’s security of supply, energy transition and broader climate change objectives.

This positive outcome also means Orbital can make a transformative investment in its UK supply chain, with around 150 jobs expected to be created through the manufacture and installation phase alone. On a jobs per MW installed basis, this would represent an unprecedented level of UK role creation for the construction phase of a renewable energy project.

It is good to see tidal power taken seriously.

The Strike Price For Tidal Stream Energy

Consider.

• Four contracts have been awarded for tidal stream energy.
• All have strike price of £178.54 per MWh of electricity.
• This may seem high, as all large wind farms have a strike price of only £37.35 per MWh of electricity.

On the other hand, there is a level playing field for all tidal stream energy developers. Just as there is for large wind farm developers, who have to live with £37.35 per MWh of electricity.

I think it will incentivise the developers and give them a reward for their technology.

All these strike prices are also mapped out for fifteen years, when trying to raise money for your tidal stream gubbins, you will know exactly where you stand.

I’ll give the Department of Business, Energy and Industrial Strategy, at least four out of five for their strike price regime!

July 8, 2022 - Posted by AnonW | Energy | Contracts for Difference Allocation Round 4, Orkney, Tidal Power