UK could become world leader in marine renewables if Government adopts a more "visionary" approach, say MPs

The UK has the largest wave and tidal resources in Europe because of Atlantic winds and the number of headlands and islands which make up the British Isles, according to a report by the Energy and Climate Change Committee. Up to 20% of the country's electricity could eventually be generated from these sources, it said.

However, committee chairman Tim Yeo warned that the UK could risk "squandering" its early lead in marine-based renewables if the Government did not take measures to support the industry.

"We are extremely well placed to lead the world in wave and tidal technologies, which could potentially bring significant benefits in manufacturing and jobs, as well as an abundant supply of reliable low-carbon electricity. A more visionary approach from the Department of Energy and Climate Change (DECC) could help to boost confidence and drive the pace of development," said Yeo.

"In the 80s the UK squandered the lead it had in wind power development and now Denmark has a large share of the worldwide market in turbine manufacturing. It should be a priority for the Government to ensure that the UK remains at the cutting edge of developments in this technology and does not allow our lead to slip," he said.

In addition to an abundance of natural resources the UK also benefitted from a long history of academic research and world class testing facilities, which were home to seven of the eight prototype devices installed worldwide, the Committee said. It added that companies based in the UK could ultimately export equipment to other markets and also provide specialist skills and expertise as the industry develops, leading to increased manufacturing output and more jobs.

However it warned about a shortage of "skilled scientists and engineers" in the workforce, adding that the Government must encourage more students into these disciplines so that they would be able to take advantage of new jobs that could be created through the growth of a UK-based wave and tidal industry.

The report concluded that "stable and consistent policy" will encourage investment in the sector, whether through revenue support schemes like the Renewables Obligation (RO) or other ways of reducing the current "very high cost" of marine technologies. Splitting costs between the private and public sectors could help to encourage investors by reducing risks, as could addressing practical barriers such as a lack of grid connections it said. The Government recently issued a consultation aimed at doubling the financial incentives available under the RO for renewable energy generated through wave and tidal stream technologies from 2013 onwards.

The Committee said that the industry had widely welcomed the changes, but added that there was "still a great deal of uncertainty" about the levels of support that would be provided beyond 2017. "The Department must provide clarity on these matters as soon as possible. It must also consider how to prevent costs to consumers beyond 2017 from becoming excessive," the report said.

It added that the £20 million currently provided by the DECC was "not large" for a "world-leading industry, even when combined with the Scottish Government's own funding budget of £18m. DECC should cooperate more closely with the Scottish Government to minimise bureaucracy and "avoid duplication and overlaps" between the two schemes, it said.

DECC announced last month that the UK's first officially designated 'marine energy park' for the development of wave and tide-powered renewable energy schemes would be established in the South West of England. Similar initiatives are being taken forward in other areas including the Pentland Firth and Orkney.