Hydro & Marine News

Friday 26 February 2010

Mr Hulm said that The Crown Estate needed to "nurture" wave and tidal more than offshore wind

The UK is at risk of losing its technological lead in wave and tidal energy if The Crown Estate does not get leasing in the Pentland Firth right, MPs have been told.

The Crown Estate owns the seabed out to 12 nautical miles and is expected to announce next month which companies have won rights to develop the Firth, which is estimated to have a capacity of around 12GW.

Speaking on Wednesday (February 24) at the Treasury sub-committee's inquiry into the management of The Crown Estate, Joe Hulm, representing the Renewable Energy Association (REA) warned that "the emergence of a new industry is at risk" due to a lack of demonstration projects.

Marine renewable energy developers cannot currently construct projects unless a seabed lease is granted by The Crown Estate. Once an area is leased, The Crown Estate is unlikely to allow any demonstration projects in the same area, ruling out large areas of the UK's tidal resource to new schemes.

Mr Hulm said this meant it was difficult to prove the efficacy of the technology, which can put off investors.

He added that compared to offshore wind, for which The Crown Estate has awarded three rounds of leased development zones, wave and tidal needed more "nurturing," which involved greater coordination with developers and more transparency as to its future plans.

If The Crown Estate could not "get this right", Mr Hulm said, the UK's lead in the sector would be lost abroad, along with associated jobs and expertise. He added that this would not only hit national ambitions, but also go against the Estate's own remit which demands it maximise revenues for the Treasury.

"In order for UK plc to realise jobs and investment then [the sector] must be nurtured and The Crown Estate is part of that," he said.

"Britain is head and shoulders above in terms of knowhow, experience and legislation and The Crown Estate should be commended for driving the industry forward. But it needs to demonstrate an array of 5MW, 10MW, or 15MW before significant lenders can get involved in the space.

"It is in The Crown Estate's interest as well as the UK's to allow technology to be effectively proven before it is rolled out.

"The risk for renewables sector is that collectively the UK loses its advantages to overseas competitors. These global businesses will go and do business somewhere more profitable."

BWEA

Although the BWEA was not present, the organisation submitted joint written evidence with fellow trade organisation Scottish Renewables.

Their submission broadly echoed the REA's in calling for closer consultation and greater clarity over future moves to aid business planning in this nascent sector.

They suggested that further leasing rounds should be a rolling basis and set out in a planned programme, so that industry can plan ahead. They said that The Crown Estate should consider awarding leases with the option to develop test sites, thereby opening up new sites to developers as their technology improves.

The BWEA and Scottish Renewables added that zoned areas for small-scale arrays should be set aside to provide demonstration development, much like Round 1 of The Crown Estate's offshore wind licensing, before progressing to large leases.

They said: "Due to the embryonic nature and specific needs of the wave and tidal energy sectors, we believe a closely consultative, tailored approach to future leasing processes is crucial to supporting the growth of this industry, keeping constraints to a minimum and providing as much flexibility for deployment as possible."

CCS

Representing the Carbon Capture and Storage Association (CCSA) at the session, chief executive Dr Jeff Chapman said The Crown Estate would likely have a large role to play in the future of the industry.

However, he added that it while was still too early to ascertain the impact of The Crown Estate on storing carbon dioxide offshore, coordination between the estate, the oil and gas industry and the Department of Energy and Climate Change (DECC) would be crucial to a speedy implementation of CCS.

"It is very important we get on with these projects as quickly and efficiently as possible," he said.

Scotland

Dr Michael Foxley and George Hamilton, leader and natural resources manager respectively at Highland Council, argued that The Crown Estate had not done enough to help communities benefit from the new wave and tidal sector.

Along with Calum Iain Maciver, director of development at the Western Isles council, they bemoaned a "fractured relationship" with The Crown Estate and called for it to work closer with local authorities.

They suggested that Scottish activities be administered in Scotland or delegated to local authorities.

"The first we knew about developments in the Pentland Firth was when we opened the newspaper," Dr Foxley said.

"There has to be some way in which they are much closer in partnership to us. The Crown Estate need to stop being a rent collector and start being a partner."

These views were echoed by Linda Rosborough, head of marine planning policy at the Scottish government.

She labelled The Crown Estate an "Anglo-centric body" and called for it to appoint a Scottish commissioner.

She said: "It is important that there is a commissioner who has the knowledge of Scottish interests in marine estate. As more than half of seas around UK are Scottish it is important that there is Scottish representation."