A new report predicts that investment in wave and tidal energy will rocket to £752m over the next five years.
In its World Wave & Tidal Market Report, energy analyst Douglas-Westwood states that installations in 2011 will be more than double those in 2010.
A total of 150MW of wave and tidal capacity is forecast to be installed between 2011-2015, with the UK being the largest market… bigger even than the US.
Douglas-Westwood’s renewable energy manager Frank Wright said: “Small commercial projects are starting to be realized, with a dramatic increase towards the end of the forecast period, led in large part by the UK’s first licensing round, which has encouraged large projects to come forward from utility companies.
“The next two years will be vital in creating an investment environment that allows the financial community to fund these projects and to invest in the necessary supply chain.”
However the report adds that the price tag of a typical wave and tidal farm remains unclear, with their financing dependent on long-term industry confidence and visibility.
In November, three wave and tidal projects in Scotland were awarded more than £13m-worth of funding.
Douglas-Westwood is an independent global energy analyst based in Canterbury, Aberdeen and New York.