To ask His Majesty's Government what assessment they have made of the merits of introducing a ringfence for wave energy in future contract for difference auctions.
Answered on
12 April 2023
Through the Contracts for Difference scheme the Government can ringfence budgets for technologies where costs are comparatively higher than other technologies in the same pot, but show potential to make an important contribution to decarbonisation targets. In the upcoming Allocation Round 5 auction, tidal stream and wave technologies will be part of the emerging technologies pot, which has a £35m budget. Of this total, the Government has a ring-fenced budget of £10m to support tidal stream projects. Wave technology is costlier and at precommercial stage, which is several years behind tidal stream in development, hence the Government has not set a ring-fenced budget for this technology.