Scotland-based Orbital Marine Power Ltd has secured two contracts for difference (CfDs) for 7.2 MW of total tidal stream capacity in the fifth allocation round of the UK’s CfD scheme.
The new contracts add to two CfDs awarded in the previous action for the same capacity of 7.2 MW. The company said on Friday it will be able to expand its development of projects in Orkney as the construction of six turbines is now backed by the CfD scheme.
Orbital’s O2 tidal turbine is capable of generating over 2 MW. The first O2 has been exporting electricity to the Orkney grid since July 2021.
In the latest auction, the company won contracts for one 4.8-MW project and another of 2.4 MW at a strike price of GBP 198 (USD 247/EUR 231). The projects are to be delivered in 2027/28.
Orbital estimates that the 7.2 MW of capacity will be able to power up to 9,000 homes.
The company said its success in the auction will allow it to make a significant investment in the UK supply chain as it prepares to establish series production of its technology.
A total of 53 MW of tidal stream projects were successful in the auction, which disappointed the industry for pricing out offshore wind.
(GBP 1 = USD 1.247/EUR 1.164)