The UK is leading the global charge on tidal energy, with nearly 40% of all wave and tidal projects worldwide happening in British waters.
A new report from the Energy Industries Council (EIC) shows the country is fast becoming the testing ground for technology that could transform renewable energy markets.
Tidal energy’s reliability gives it an advantage over wind and solar.
Unlike the weather, tides follow a predictable cycle, offering a steady power source that could be a key player in the UK’s net-zero drive.
With 22 tidal projects and six wave energy developments, Britain has the largest pipeline in the world. Scotland alone hosts 14 projects, including the MeyGen tidal array, which will be the world’s largest at 398MW.
Government backing through the Contracts for Difference (CfD) scheme has been crucial. The UK has secured £45 million across three CfD auction rounds, and costs are already dropping.
Strike prices for tidal energy have fallen from £178.54/MWh in 2022 to £172/MWh in 2024, with a target of £100/MWh by 2030. That’s when serious private investment could flood in.
Nabil Ahmed author of the report said: “The UK’s focus here isn’t just about hitting net-zero targets. It’s about building an exportable industry. The expertise gained in the Orkney Islands or the Bay of Fundy could be sold to coastal nations worldwide.”
Challenges remain. Tidal still needs subsidies to compete, with costs around triple the current wholesale power price. Wave energy is even further behind, with no projects yet winning CfD backing. But as technology scales, costs will fall.
The next big test comes in the 2025 CfD auction.
If the government increases support, the EIC predicts the UK could cement its dominance—and prove that tidal power is more than just a niche experiment.
