House of Commons Energy and Climate Change Committee The Future of Marine Renewables in the UK Eleventh Report of Session 2010–12 Volume II Additional written evidence Ordered by the House of Commons to be published 7 February 2012 Published on 19 February 2012 by authority of the House of Commons London: The Stationery Office Limited The Energy and Climate Change Committee The Energy and Climate Change Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Department of Energy and Climate Change and associated public bodies. Current membership Mr Tim Yeo MP (Conservative, South Suffolk) (Chair) Dan Byles MP (Conservative, North Warwickshire) Barry Gardiner MP (Labour, Brent North) Ian Lavery MP (Labour, Wansbeck) Dr Phillip Lee MP (Conservative, Bracknell) Albert Owen MP (Labour, Ynys Môn) Christopher Pincher MP (Conservative, Tamworth) John Robertson MP (Labour, Glasgow North West) Laura Sandys MP (Conservative, South Thanet) Sir Robert Smith MP (Liberal Democrat, West Aberdeenshire and Kincardine) Dr Alan Whitehead MP (Labour, Southampton Test) The following members were also members of the committee during the parliament: Gemma Doyle MP (Labour/Co-operative, West Dunbartonshire) Tom Greatrex MP (Labour, Rutherglen and Hamilton West) Powers The committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the Internet via www.parliament.uk. Publication The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the internet at www.parliament.uk/parliament.uk/ecc. The Reports of the Committee, the formal minutes relating to that report, oral evidence taken and some or all written evidence are available in a printed volume. Additional written evidence may be published on the internet only. Committee staff The current staff of the Committee are Sarah Hartwell-Naguib (Clerk), Dr Richard Benwell (Second Clerk), Dr Michael H. O’Brien (Committee Specialist), Jenny Bird (Committee Specialist), Francene Graham (Senior Committee Assistant), Jonathan Olivier Wright (Committee Assistant), Julie Evans (Committee Support Assistant) and Nick Davies (Media Officer). Contacts All correspondence should be addressed to the Clerk of the Energy and Climate Change Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 2569; the Committee’s email address is [email protected] List of additional written evidence 1 Innovation and Policy Group, University of Edinburgh Ev w1 2 Parsons Brinckerhoff Ev w8 3 Whale and Dolphin Conservation Society Ev w12 4 Seabed User and Developer Group Ev w14 5 Shawater Ltd Ev w16 6 The European Marine Energy Centre (EMEC) Limited Ev w20 7 Atlantis Resources Corporation Ev w24 8 AMEC Environment & Infrastructure UK Limited Ev w29 9 Pulse Group Holdings Ltd Ev w32 10 Highlands and Islands Enterprise Ev w35 11 Marine Energy Group, University of Edinburgh Ev w39 12 Trident Energy Ev w43 13 Alstom Ev w45 14 Royal Institution of Chartered Surveyors Ev w49 15 Institute of Marine Engineering, Science and Technology Ev w 52 16 The Scottish Government, Energy Directorate, Offshore Renewables Ev w54, Ev w57 17 RWE Npower Renewables Limited Ev w58 18 Wave Hub Ev w61 19 Wildlife Trusts Ev w66 20 Campaign to Protect Rural England Ev w68 21 Countryside Council for Wales Ev w69 22 Low Carbon Developers Ev w73 23 Hales Energy Ltd Ev w78 24 Peel Energy Limited Ev w81 25 Tyndall Centre Ev w83 26 Renewable Energy Association's Ocean Energy Group Ev w85 27 Engineering the Future Alliance Ev w91 28 National Renewable Energy Centre NAREC Ev w97 29 ScottishPower Ev w100 30 SSE Ev w102 31 AWS Ocean Energy Ltd Ev w107 32 Welsh Government Ev w111 33 Northern Ireland Executive Ev w113 34 JWG Consulting Ltd Ev w119 35 Jeremy Baster Ev w122 cobber Pack: U PL: CWE1 [SO] Processed: [14-02-2012 16:41] Job: 018161 Unit: PG01 Energy and Climate Change Committee: Evidence Ev w1 Written evidence Memorandum submitted by University of Edinburgh: Innovation and Policy group for marine renewables It is important to clarify here that the term “marine renewables” is taken to encompass only the wave and tidal stream energy sectors. Other energy conversion technologies such as tidal barrage, offshore wind, and ocean thermal energy conversion (OTEC) will not be considered in this response. 1. What are the potential benefits that marine renewables could bring to the UK and should Government be supporting the development of these particular technologies? If the right facilitating policies are put in place, the benefits that marine renewables could bring to the UK are threefold: — Emissions reductions; — Increased security of supply; and — Economic benefits including job creation and inward investment. The benefits from emissions reductions and increased security of supply are principally benefits from marine renewable energy deployments in the UK, irrespective of where the supply chain is developed. In comparison to this, the economic benefits are principally benefits from developing the sector and the supply chain in the UK. Emissions reductions and Increased security of supply: The UK has committed to a legally binding target of achieving 80% emissions reductions (1990 baseline) by 2050.1 In addition, the EU Renewable Energy Directive2 sets the UK a legally binding target of producing 15% of UK energy consumption from renewable sources by 2020. Both of these targets are highly ambitious and will require a swift and efficient transition to low carbon energy sources. The Carbon Trust estimate that, with devices currently under development, the wave energy sector in the UK could practically and economically capture around 50 TWh/yr and the tidal stream sector around 20 TWh/ yr. Combined, the two sectors could therefore capture a maximum of 70 TWh/yr,3 around 20% of current UK electricity demand which was 379 TWh in 2009.4 Achieving the UK’s ambitious target of 80% emissions reductions by 2050 whilst the overall electricity demand is projected to rise over the same period (to an estimated 600 TWh/yr),5 illustrates the fundamental changes in the emissions intensity of the electricity sector which will be required. A wide and diverse range of low carbon technologies will be required if the targets are to be met, and marine renewables could make a large contribution. There are a myriad of different scenarios for how the UK’s growing demand and ambitious emissions reduction targets could be met. One such scenario, under which all low carbon technologies are accelerated, is shown in figure 1 below which illustrates the large potential role for the marine energy sector, contributing in excess of 70GW of installed capacity by 2050. 1 UK Climate Change Act (2008). 2 Directive 2009/28/EC of the European Parliament (23 April 2009). 3 Carbon Trust (2011) Accelerating Marine Energy report. 4 DUKES (2011)—Chapter 5, electricity. 5 Elders et al. (2005) Electricity Network Scenarios for Great Britain in 2050. cobber Pack: U PL: CWE1 [E] Processed: [14-02-2012 16:41] Job: 018161 Unit: PG01 Ev w2 Energy and Climate Change Committee: Evidence Figure 1 GRAPH SHOWING THE CONTRIBUTION THAT MARINE RENEWABLES COULD MAKE IN THE UK IN 2050 UNDER A SCENARIO IN WHICH 80% EMISSIONS REDUCTIONS ARE ACHIEVED BY 2050 AND IN WHICH ALL LOW CARBON TECHNOLOGIES ARE ACCELERATED Installed capacity (GW) 120 Storage Hydro 100 Oil Solar PV 80 Nuclear Marine 60 Gas CCS GW Imports Gas 40 Blowaste & others Coal CCS 20 Wind Coal 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 (Source: UKERC 2050 Project). As can be seen in figure 2 below, UK electricity generation is highly dependent on generation types such as gas. In 2010, ~38% of the natural gas used in the UK was imported,6 illustrative of how exposed the UK electricity generation is to price volatilities which are largely controlled by factors outside of the UK. The above estimate that the marine renewables sector could contribute 70 TWh/yr7 to the UK electricity system is in excess of the contribution that nuclear energy made to the UK net electricity supplied in 2010. Clearly the scale of this potential contribution is significant to the UK’s energy security as marine renewables exploit a completely domestic resource. Figure 2 GRAPH SHOWING THE BREAKDOWN BY FUEL INPUT OF THE UK NET ELECTRICITY SUPPLIED IN 2010 Other Fuels Renewables 1% 7% Imports 1% Coal 28% Nuclear Gas 16% 47% (Source: DUKES 2011). Economic benefits: The Carbon Trust estimate that the global market for marine energy could be worth up to £460 billion in the period 2010–50, reaching up to £40 billion/year by 2050. They estimate that around 75% of this is potentially accessible to UK based businesses, and that the UK (given present strengths) could capture ~£76 6 DUKES (2011)—Chapter 4, natural gas. 7 Carbon Trust (2011) Accelerating Marine Energy report. cobber Pack: U PL: CWE1 [O] Processed: [14-02-2012 16:41] Job: 018161 Unit: PG01 Energy and Climate Change Committee: Evidence Ev w3 billion (22%) of this accessible market, contributing ~£15 billion to UK GDP over 2010–50 and potentially creating over 68,000 UK jobs by 2050. It is important to highlight that a substantial portion of these UK jobs (over 70%) are estimated to be generated by exports, both within Europe and beyond.8 Should government be supporting the development of these particular technologies? At present, the UK is seen as the world leader in marine renewables, and many of the leading technologies and companies in the sector are located in the UK. This is largely due to the support which the UK government has provided to the sector.