Morlais Tidal Energy welcomes the announcement by the UK government on price rises for the next allocation round (AR6) to be held in 2024. The decision to increase the maximum bid prices for tidal energy, as part of a broader initiative to support renewable technologies, is seen as an endorsement of the sector and its role in the journey towards net-zero.
The 29% increase in maximum bid prices for tidal energy from £202/MWh to £261/MWh is a significant boost and will have wider implications for what is seen as a growth sector. The government's announcement also includes increased bid prices for other technologies, including offshore wind and solar, offering certainty for developers and renewables as a whole.
Welcoming the news, John Jenkins, a director with Morlais said:
“This announcement demonstrates the government's confidence in tidal stream technology. It has an important part to play in renewable energy generation and is a crucial element as we aim for net-zero.
“For us on Anglesey there is added significance as it gives developers already committed to us at Morlais, increased confidence through success at AR4 and AR5, that they can plan to expand to a potential full capacity of 30MW each. I’m certain the move will promote innovation and ensure we remain at the cutting edge of the sector as well as encourage new technology developers to commit to Morlais.”
Managed by Anglesey social enterprise, Menter Môn, Morlais is the largest consented tidal energy site in the UK. It provides developers with a reduced risk model of deploying their technology on a commercial scale. With a potential maximum generating capacity of 240 MW the recent announcement on maximum price increase is another important step to achieving this.
Work on the Morlais substation near South Stack on Holy Island is almost complete, and the first turbines are expected to be deployed in the sea in 2026. The project is part funded by the European Regional Development Fund through the Welsh Government and has also secured funding for consent and development from the Nuclear Decommissioning Authority and the Isle of Anglesey County Council.