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£500,000 fund to develop new tidal energy technologies

26 January 2009

South West businesses developing new tidal energy technologies are being encouraged to apply to a new £500,000 fund designed to speed up the development of this cutting edge, but as yet unproven, technology.

The half-a-million pound fund, which would be match-funded by the private sector, comprises £250,000 from Defra and £125,000 from both the South West RDA and the Welsh Assembly Government. The fund was announced today (26 January) by Ed Miliband, Secretary of State for Energy and Climate Change.

The fund forms part of the Government's announcement on the five shortlisted tidal energy schemes for the Severn Estuary - the world's second largest tidal range.

The new fund has been set up to help progress schemes still at the conceptual design stage, such as tidal reefs and tidal fences, which could be suitable for capturing the energy in the Severn Estuary. Although not shortlisted by the Government, these schemes are considered to be worth developing as they could have less environmental impact than more traditional types of tidal energy schemes. The progress of these embryonic schemes will be taken into account before decisions are taken in 2010 on whether to go ahead with a Severn tidal power scheme.

Claire Gibson, Director of Sustainable Resources at the South West RDA, which is also part of the cross-Government team involved in the two-year study to assess the environmental, social and economic effects of the proposed schemes, said: "The region has an excellent marine energy resource that could contribute significantly towards meeting our future energy and climate change goals. We are beginning to see a world class marine energy industry develop in South West England, supported by our investment in projects such as Wave Hub and PRIMaRE, the new research institute in Cornwall and Plymouth. Our investment into this new tidal energy technologies fund forms a vital part of our commitment to lead the transformation to a low carbon economy, by unlocking the business potential of the sustainable energy sector."

A 12-week public consultation will now follow today's shortlist announcement.

Commenting on the shortlist of schemes, Claire added: "We fully support the Government's aspiration to investigate the right way to extract energy from the Severn Estuary, which has some of the best tidal potential in the world. It's too early to predict what the study will eventually conclude. Moving forward, we've got to ensure that we work with partners to secure the best outcome for South West England and mitigate, as best we can, any adverse impact on the region's environment and parts of its economy."

The cross-Government study is due to be completed in early 2010. There will then be a further public consultation on the findings of the feasibility study and on whether the Government should support a tidal power project in the Severn, and if so, what the next steps would be.

The South West's sustainable energy sector is worth over £500 million a year to the regional economy, supporting in excess of 7,200 jobs. It has seen a 37 per cent year-on-year growth in employment over the last 3 years.

Businesses interested in finding out more should email severntidalpowerunit@decc.gsi.gov.uk

Ends

Notes to editors

1. The South West RDA leads the development of a sustainable economy, investing to unlock the region's business potential. It is helping companies respond to the economic crisis and charts a course for recovery. The RDA is developing or expanding initiatives which include: establishing a Business Loan Fund; coordinating the response to large companies in difficulty; preparing for economic recovery.

2. The Five shortlisted schemes include: Shoots Barrage; Beachley Barrage; Fleming Lagoon; Bridgwater Bay Lagoon and Cardiff-Weston Barrage.

For more information, please visit: http://severntidalpowerconsultation.decc.gov.uk/

3. Claire Gibson is available for interview in Bristol or on the telephone between 2 and 3pm on Monday, January 26.

For more details contact: Rachel Price, South West RDA press office, Tel: 01392 229548 / 07712 678895 or email: rachel.price@southwestrda.org.uk

Contact Details

Name: Rachel Price
Tel: 01392 229548
Email: rachel.price@southwestrda.org.uk