QED Naval is pleased to announce that their subsidiary Mor Energy Limited has secured a 5.5MW tidal stream Contract for Difference (CfD) under the UK Government’s Allocation Round 7a (AR7a).
The award secures a clearing strike price of £265/MWh (2024 prices) for the company’s Morlais project in Wales, with the project expected to begin generating power in 2029. This milestone takes QED Naval’s CfD-backed Morlais capacity to 10MW which alone is expected to deliver over £50m of gross value added (GVA) to the UK economy.
As the company progresses towards building its first commercial multi-turbine array, it is working with the UK and Welsh Governments to secure the early-stage, upfront investment needed to de-risk delivery and crowd-in private and institutional capital. Across AR7a, 20.9MW of tidal stream capacity was awarded to four projects underlining the UK’s continued leadership in tidal energy.
QED Naval CEO Jeremy Smith said: “Whilst this UK Government intent is widely appreciated and needed, it must be followed up and supported by early-stage project finance to de-risk delivery and crowd in the private and institutional funds which we know are interested in the sector.”
QED Naval is now engaging with the Department for Energy Security and Net Zero (DESNZ) and Great British Energy Ventures along with the UK and Welsh Governments to address what appears to be a clear gap in delivery-stage funding and strategic policy support. With the UK at risk of losing over £100m+ of GVA and hundreds of skilled jobs, and France announcing major support for its tidal stream sector, the UK needs to move quickly to secure its future in tidal energy.