RWE abandons 'world's largest' wave energy project

The future of the world's largest wave energy project has been thrown into doubt after RWE npower renewables withdrew its backing for a planned 4MW scheme on the Scottish island of Lewis.

RWE confirmed this week it will no longer proceed with the Siadar project, which aims to deploy 10 wave generators provided by Inverness-based Voith Hydro Wavegen off the Western Isles.

A spokesman for RWE told BusinessGreen the decision represents a shift in the company's marine energy priorities that will see it now focus on developing tidal stream technology with Voith as part of an alternative project in the Orkney Waters.

"Tidal seems simpler to develop and it's going to be easier and quicker to develop than the Siadar technology," he said.

The company also issued a statement praising the "excellent job" the team working on the project had done and wishing Voith success as it continues to develop the scheme.

The Wavegen project, which uses an oscillating water column, had been slated for completion in 2012.

Wavegen told the Sunday Herald last weekend that it is in talks with a number of parties to secure a new owner and investor in the project, while it continues to carry out civil engineering work on the site.

Last year, the Siadar project emerged as the biggest winner in a £13m government funding round, designed to help Scotland achieve its goal of becoming "the Saudi Arabia of marine energy".

The news will fuel concerns that the fledgling marine power sector is again struggling to secure the funding necessary to deliver commercial-scale projects.

Leading tidal energy company Marine Current Turbines recently put up the 'for sale' sign, while wave energy firm Pelamis has trimmed its workforce significantly in recent months.

"There are other companies making similar decisions, and it goes to show this part of the renewables landscape is challenging and difficult," RWE's spokesman said. "But we're not the only example, it's part of a bigger picture."

However, trade association RenewableUK downplayed concerns about the future of the marine energy sector.

Oliver Wragg, RenewableUK's wave and tidal development manager, said the RWE decision was "very much business as usual".

"In any project, partners will come and go at different stages, so this is very much business as usual," he said. "What matters most right now is that the government should create a robust framework to help the wave and tidal industry fulfil its extraordinary potential."

DECC announced last month that it had earmarked up to £20m from its £200m low-carbon technologies fund to support marine energy demonstration projects.

However, the news was given a decidedly lukewarm welcome by RenewableUK at the time, which warned that £20m would only have a limited impact on a nascent industry that requires higher levels of capital investment.

A Scottish government spokesman expressed optimism about the future of the Siadar project, saying it still offers a significant opportunity to demonstrate new marine energy technologies.

"The sheer scale of developments, by a range of companies, highlights the serious plans for commercial wave and tidal power in Scotland," he said. "Projects are happening around Scotland: for example, plans to harness 1.6GW of wave and tidal power in the Pentland Firth and Orkney Waters; the recent consent for a 10MW tidal array in Islay; the world-leading European Marine Energy Centre in Orkney will be full by the end of this year; there are significant investments in Scottish technology from multinational companies including ABB and Alstom; while the Crown Estate has a rolling programme of further leasing activity aimed at supporting entrants for the Scottish government's £10m Saltire Prize."