Both public and private sector are unwilling to invest in wave power, frustrating the development of what could be a huge clean energy source for the UK

Funding for wave power, seen as a potentially huge and clean source of energy for the UK, has become uncertain as investors pull out or are unwilling to invest, according to a new report.

Both the public and private sector are reluctant to invest, says the report by the Offshore Renewable Energy Catapult (ORE), a government-funded innovation centre. “This market is strategically important to the UK but is on the brink of foundering. It is crucial that action is taken to bolster the prospects of the industry,” it says.

The warning follows the recent collapse of Pelamis Wave Power and financial difficulties at Aquamarine Power, and claims that the Scottish government has abandoned wave power.





ORE projects that around £200m of investment is needed to drive the wave industry along a path to commercial readiness.

Neil Kermode, managing director of the European Marine Energy Centre (EMEC), in Orkney, Scotland, said despite recent difficulties, this is not the end of wave energy.



“Pelamis proved that wave energy works, so this has been a big setback. But the prize of 15% of the UK’s electricity is still there. The challenge now: to ensure that this is the first generation to make the most of the waves that keep pounding the UK coastline.

“Investors are cautious just now and the government is pleading poverty. But this is the moment for further innovation to capture the opportunity and the energy.”

The ORE report calls for better assessment of new technologies and greater coordination between public and private sectors to reassure investors. And it wants government to provide debt finance.



Dee Nunn, wave and tidal manager at trade body RenewableUK, said: “Although the recent announcements by wave companies such as Pelamis and Aquamarine are obviously setbacks for the UK’s marine energy sector in the short term, their devices have already proved their worth generating clean electricity in UK waters, and we believe that wave technology will become commercially viable in the future.

“The UK is still at the cutting edge of marine power with more wave and tidal devices installed than the rest of the world put together. There are many highly successful players operating in the marine energy sector, which employs more than 1,600 people. Wave companies such as Seatricity at Wave Hub in Cornwall and Aquamarine at EMEC are continuing to generate.”

One long-term investor is Fortum, a Finnish firm that has invested in wave power since 2007. It has a leasing agreement with Wave Hub in Cornwall and invests in Wello, a Finnish wave developer. Ms Heli Antila, Fortum’s chief technology officer, said: “We have seen positive progress in wave energy.”