Nova Innovation scores a hat-trick in UK Government's latest energy auction
Nova Innovation has secured three 15-year contracts for its SEASTAR and OCEANSTAR tidal energy projects in Orkney, as part of the UK Government’s Contracts for Difference (CfD) auction. CfDs ensure projects receive a guaranteed price for the electricity they generate, giving investors long term revenue certainty. The scheme has been instrumental in making the UK a global leader in marine energy, with the world’s largest tidal stream capacity now under development.
The auction saw Nova win three contracts amounting to 6MW of tidal energy capacity – 4MW under SEASTAR and a further 2MW under OCEANSTAR. Both are located at the Fall of Warness site in Orkney, renowned for having some of the strongest tides in the world. This marks a pivotal milestone as Nova continues to expand its operations.
The CfDs provide Nova with long-term price certainty to finance projects, expand manufacturing capability and scale-up at pace.
“Winning the CFD contract is a testament to our team’s ability to deliver solid results whilst continuing to innovate and grow. This is another significant step towards realising our vision of a world powered by clean, sustainable marine energy.”
The UK is surrounded by tidal energy that could meet 11% of electricity demand, whilst the global ocean energy market is forecast to be worth €145 billion by 2050. Tidal energy offers many unique advantages. With solar and wind, there are times when the sun doesn’t shine, and the wind doesn’t blow, but the tide can be accurately predicted days, months, and even years ahead. This predictability is a game-changer, enhancing energy security and providing a reliable source of renewable energy, in the fight against climate change.
“We are delighted with our success in our first venture into the CfD process. Winning the CfDs enables us to deliver our world-leading tidal energy technology in the UK and enables us to scale up rapidly – designed in Britain, built in Britain, delivered globally.”
With the results of this year’s auction, the UK is on track to have over 130MW of tidal energy deployed in its waters by 2029. This is enabling a thriving supply chain to emerge, with manufacturing and the world’s leading technology companies anchored in the UK. The adoption of the right industrial strategy and the proposed 1 GW target would enable the UK to become a green energy superpower in tidal energy – creating jobs, economic growth and valuable exports.