A new report by the European Marine Energy Centre (EMEC) and the Offshore Renewable Energy (ORE) Catapult has shown how local tidal energy projects can help Scottish costal communities in the move to net zero.
Carried out on behalf of Crown Estate Scotland, Scottish Enterprise, and Highlands and Islands Enterprise, the study sought to explore how tidal power projects could be directly connected to users without connecting through the national grid. It examined 30 tidal stream energy projects around the coast of Scotland, of which 20 were deemed as being viably close enough to end users. The study notes that accessing energy in this way is not intended to replace a connection to the national grid but instead would supplement larger-scale connections to make the best use of tidal energy generation.
The report suggests that replacing fossil fuel-powered generators with electricity from tidal stream projects is currently financially viable or even significantly advantageous, with tidal stream power’s levelised cost of energy (LCOE) sitting at around £240/MWh, compared to the LCOE of diesel generation, which is between £250-£600/MWh. Additionally, the study states that reducing reliance on diesel and oil, which are often transported over long distances, could benefit the energy resilience of rural areas, while an increased number of tidal energy projects could boost the economic potential of the area through job creation.
Offtaking energy from tidal stream developments around Scotland to use in the production of green hydrogen was explore was considered one of the most promising offtake opportunities for Scotland’s tidal sector. Of this, the largest opportunity identified was the production of synthetic fuels from green hydrogen, with these fuels potentially being used in existing generators, including the Flotta oil terminal in Orkney.
High heat use industrial operations, such as distilleries, are also a good potential match for green hydrogen created with electricity from tidal stream sources. One potential project examined for offtake suitability was the Islay project, where green hydrogen company Protium has explored how green hydrogen can help Scotland’s distilleries, such as the Bruichladdich distillery, become carbon neutral by 2040.
The EMEC makes several recommendations for how market barriers can be addressed to increase deployment of tidal projects, and thus make the best use of these assets for Scotland’s coastal communities. These include increasing the Contracts for Difference (CfD) tidal ringfence budget to £30 million, establishing a bespoke feed-in tariff for tidal projects under 5MW, undertaking feasibility studies to explore the role of tidal energy in the growing green hydrogen sector, and increasing installations of battery energy storage systems in communities.
Carolyn MacPhee, development manager at Crown Estate Scotland, said: “Scotland has an enviable natural resource in the form of tidal power, which provides a consistent and predictable source of renewable energy. However, securing a connection to the national grid is an acknowledged obstacle to making full use of the tidal stream power available. This report sets out the opportunities to make greater use of our country’s natural power”.
Eileen Linklater, corporate affairs director at EMEC, added: “The report highlights the potential of tidal stream energy to drive net zero goals, bolster energy security, and promote green growth across the UK. Alternative offtake routes for tidal stream generation across Scotland could play an important role in enabling the sector’s development”.
