Big Six supplier EDF Energy has agreed to buy power from a tidal project off the coast of Wales.

Tidal Energy Ltd (TEL), developer of DeltaStream, said the two companies have signed a Power Purchase Agreement (PPA) which will see the energy firm buy clean electricity and renewable certificates for the first year of the project at a pre-agreed price.

That means TEL will receive revenue from the electricity produced as well as from the Government’s Renewable Obligation (RO) programme that awards payments to clean energy generators.

The project includes the installation of a 400kW machine, with the aim of scaling up to nine further machines which would produce 10MW – enough to power 10,000 homes – by 2017.

Dan Brimelow, Export Sales and Procurement Manager at EDF Energy said: “The UK needs electricity generation from a range of low carbon sources. Technologies like tidal power help improve the diversity of electricity supplies and reduce our reliance on imported energy which is good for the country’s future energy security.”