Source · Select Committees · Business and Trade Committee
Recommendation 18
18
Deferred
Paragraph: 87
Reduced tidal stream funding ringfence may damage UK marine energy advantage.
Recommendation
We agree that the Government should seek to maximise the renewable opportunities afforded by the UK’s geography, including the potential benefits of tidal energy. Unlike offshore wind, tidal stream projects have not benefited from stable subsidies to bring their costs down. The Government’s recent decision to reduce the tidal steam ringfence from £20 million to £10 million in the upcoming round of Contracts for Difference scheme may damage the UK’s first-mover advantage in marine energy and increase project costs. However, we recognise that support must provide value for money for taxpayers.
Government Response Summary
The government's response discusses developing a business model for power BECCS and setting GHG thresholds, completely ignoring the recommendation about tidal energy funding.
Paragraph Reference:
87
Government Response
Deferred
HM Government
Deferred
59. The Department for Energy Security and Net Zero’s Chief Scientific Advisor commissioned a task and finish group to establish an evidence-based position on the validity of BECCS as a Greenhouse Gas Removal (GGR) option to deliver negative emissions. The group’s report will be published alongside the Biomass Strategy. 60. The Government is committed to developing a business model for power BECCS, which could support the conversion of eligible biomass power stations to BECCS plants. 12 Decarbonisation of the power sector: Government Response The Government recently consulted on a power BECCS business model, where it was stated that government will develop options for setting a maximum GHG threshold for the supply chain emissions, to ensure that BECCS delivers genuine net-negative emissions. 61. Deployment of GGRs, including BECCS, will be contingent on eligibility, availability of relevant transport and storage infrastructure where required, and an assessment of affordability and value for money.