GVA and Jobs Supported
- With UK deployment of 100MW per year from 2021/22, and a realistic share of a growing global market, the tidal stream industry could generate a net cumulative benefit to the UK by 2030 of £1,400m, consisting of £1,600m GVA from the domestic market and £1,100m GVA from exports, offset by £1,300m of revenue support. This would also support a total of almost 4,000 jobs by 2030 and 14,500 by 2040.
- Assuming a 10 year lag behind tidal stream, wave energy will also add a net positive contribution to the UK economy, worth a net cumulative benefit to the UK by 2040 of £4,000m, consisting of £1,500m GVA from the domestic market and £3,700m GVA from exports, offset by £1,200m of revenue support. This would also support a total of 8,100 jobs by 2040.
- 50-60% of the economic benefit in terms of both GVA and jobs is expected to be generated in coastal areas, many with a need for economic regeneration, adding an additional value over and above what has been quantified in this report.
Carbon Emissions Reduction
- Marine energy technologies have the potential to displace coal and natural gas generation on the grid and to reduce CO2 emissions permanently by at least 1MtCO2 per year after 2030 and at least 4MtCO2 per year after 2040.
- Tidal stream has potential to reach LCOE of £150 per MWh by 100MW installed, reducing to £90 per MWh by 1GW and £80 per MWh by 2GW. Further reductions are possible with additional focus on innovation and continued reductions in cost of capital towards levels coming through in offshore wind.
- Significant cost reductions are expected in the near-term as the industry takes the step from pre-commercial arrays to commercial projects.
Tidal Stream and Wave Energy Cost Reduction and Industrial Benefit: Summary Analysis is located in United Kingdom.