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ISSN 2753-7757 (Online)

EU funding, AI R&D and UK CfD leadership are driving tidal and wave energy projects forwards

26/3/2025

News

Close up view of a tidal turbine Photo: Proteus Marine Renewables
Proteus Marine Renewables recently deployed Japan’s first 1.1 MW tidal turbine in the Naru Strait – the company invited local schoolchildren from the Goto Islands to create drawings of their vision for clean energy, which were then incorporated into the AR1100 turbine itself

Photo: Proteus Marine Renewables

The marine energy sector has been in a stir recently. Recent projects include the deployment of Japan’s first ever 1.1 MW tidal turbine, a French pilot tidal project securing significant EU funding, and the development of an AI wave energy control project. Meanwhile, a new report from the Energy Industries Council (EIC) suggests the UK is emerging as a global leader in wave and tidal energy, accounting for nearly 40% of all wave and tidal projects worldwide.

 

 

Japan’s first 1.1 MW tidal turbine installed

Proteus Marine Renewables’ recently deployed Japan’s first 1.1 MW tidal turbine in the Naru Strait.  

 

The AR1100 turbine will help decarbonise the Goto Islands’ electricity supply.  

 

The project builds on the success of the AR500 pilot in the Naru Strait that maintained a 97% turbine availability in 2021.  

 

French NH1 tidal project secures EU funding

Normandie Hydroliennes has secured €31.3mn from the European Union’s 2023 Innovation Fund for a pilot tidal project offshore Normandy, France. The 12 MW NH1 project, set to be one of France’s first commercial-scale tidal energy ventures, will harness the strong marine currents of the Alderney Race off the coast of Cap de la Hague. The currents here are among the most powerful in the world, and the project’s potential to generate up to 18 TWh of electricity could supply power to eight million people, according to Normandie Hydroliennes.

 

The NH1 project will feature four AR3000 horizontal-axis turbines developed by Proteus Marine Renewables, each with a 24-metre diameter rotor and a 3 MW power rating. Touted as the most powerful and efficient currently in commercial operation, the four turbines are expected to produce 34 GWh annually of clean, sustainable, and predictable energy to the French grid. The pilot project aims to initially supply 15,000 people by 2028, demonstrating a compact design with minimal environmental impact.

 

AI-based wave energy control project gets financial backing

In related news, CorPower Ocean has secured financial backing from Vinnova, Sweden’s national innovation agency, to test the efficacy of artificial intelligence (AI) in enhancing wave energy technology performance and control.

 

The WACE (Wave energy AI-based Control Enhancement) Project will run until November 2025, supported by project partner NTNU (Norwegian University of Science and Technology).

 

The financial backing comes shortly after the Swedish tech developer secured €32nm Series B funding to support the commercial roll out of its wave energy converter (WEC) technology.  

 

The goal is to combine existing control algorithms for wave energy converters (WECs) with AI-based methods to improve overall control schemes, emphasises WACE Project Lead and CorPower Ocean Control Engineer Gabriel Forstner. This approach, although focused on WECs, promises broader industrial applications, he says. Forstner also notes that optimised WEC operations are crucial to reducing the levelised cost of energy (LCOE), making wave energy a competitive part of the future clean energy mix.

 

UK emerges as global leader in wave and tidal energy, EIC report shows

Meanwhile, the UK has solidified its position as a global leader in marine energy, accounting for nearly 40% of all wave and tidal projects worldwide, according to new analysis from the Energy Industries Council (EIC). It reports that the UK’s Contracts for Difference (CfD) scheme has been pivotal in this growth, providing developers with the confidence to scale up.  

 

The numbers speak for themselves. Of the 74 wave and tidal projects tracked globally by EIC, 28 are in the UK (22 tidal and six wave). Scotland alone is home to 14 projects, including the MeyGen tidal array, set to become the world’s largest at 398 MW. The UK’s tidal pipeline has already secured £45mn in government support across three CfD auction rounds, with strike prices falling from £178.54/MWh in 2022 to £172/MWh in 2024.

 

‘Tidal’s predictability gives it an edge over wind and solar,’ notes report author Nabil Ahmed. ‘The UK’s focus here isn’t just about hitting net zero targets. It’s about building an exportable industry. The expertise gained in the Orkney Islands or the Bay of Fundy could be sold to coastal nations worldwide.’

 

However, the sector’s Achilles’ heel remains cost, globally. Tidal stream projects in the UK still require subsidies of £172/MWh, which is triple the current wholesale power price. Wave energy is even pricier, with no projects yet winning CfD auctions.

 

‘Costs will fall as technology scales,’ Ahmed says. ‘Tidal has already dropped 30% in a decade. The goal is to hit £100/MWh by 2030. That’s when you’ll see banks and pension funds jumping in.’

 

Across the Channel, the European Union is making its own push. The bloc’s Horizon Europe programme has earmarked €95.5bn for green energy research and development, with marine projects like France’s 17.5 MW Flowatt tidal farm and Portugal’s 20 MW wave energy site competing for funds. Europe’s pipeline includes 13 projects, though it lags behind the UK in both scale and policy clarity, according to the EIC.

 

‘The EU’s 1 GW target for ocean energy by 2030 is achievable, but only if member states align their incentives,’ notes Ahmed. ‘France and Portugal are leading, but others need to catch up.’

 

Half a world away, Indonesia is waking up to its marine energy potential. The archipelago nation has the largest project pipeline in the Asia-Pacific region, with nine wave and tidal developments underway. Projects like the 150 MW Nautilus tidal power project aim to tap into an estimated 63 GW of marine energy resources, enough to power the country twice over, according to the EIC report.

 

‘Indonesia’s challenge isn’t resources, it’s regulation,’ comments Ahmed. ‘Overlapping agencies and a lack of feed-in tariffs have slowed progress. But if they get the policy framework right, this could be a $20bn market by 2040.’

 

The US and Canada, despite vast coastlines, trail behind. The US has six projects in development, including the PacWave South test site in Oregon, while Canada’s seven projects focus on Nova Scotia’s Bay of Fundy, home to the world’s highest tides. Combined, their pipelines total just 68 MW, a fraction of the UK’s recommended 300 MW target for 2030.

 

‘North America has the resources but not the urgency,’ Ahmed says. ‘The US Department of Energy’s $18mn R&D commitment is a start, but they’ll need CfD-style revenue guarantees to attract serious private investment.’

 

The International Energy Agency estimates global installed capacity could reach 300 GW by 2050, with a market value of $340bn. But getting there will require more than just optimism. ‘Governments need to stop treating marine energy as a science project,’ Ahmed says. ‘The UK’s CfD model works because it treats tidal like a mainstream renewable. Others need to follow or get left behind. For now, all eyes are on the UK’s next CfD auction in 2025. If the ring-fenced tidal budget grows, as industry advocates demand, the country could solidify its lead, and prove that the oceans’ power is more than a drop in the renewable energy bucket.’