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Scottish firms are being urged to forge their own opportunities in the multi-million pound wave and tidal power market.

With most of an estimated £130 million of global capital investment earmarked for UK activity, a new report prepared for the Scottish Enterprise Energy Team says a diverse range of Scottish sectors are well placed to capture work in marine renewables projects.

The report has been completed to give companies wishing to be part of the supply chain an overview of the key issues, supply chain structure, project lifecycles and main players in the sector.

It states that while the market is only just beginning to develop, global capital expenditure on wave energy is estimated at £72 million between 2004 and 2008, with almost 50 percent of the spend focused on the UK. In the same period, capital expenditure on tidal projects is estimated at around £55 million, nearly 90 percent of which is related to the UK market.

It says: “The fact that the marine renewables sector is less well developed than other energy industries presents companies with both opportunities and challenges.

“The lack of an established industry structure can make entry into the market uncertain for newcomers. However, this lack of structure also means that companies are potentially more able to create and take opportunities than is possible in other parts of the energy industry.”

The report, prepared by industry consultants OTM, says services required in the sector include business and finance, environmental surveys, design, manufacture, offshore construction, operation and decommissioning.

The document says that most governments have introduced schemes to encourage the development and uptake of renewable energy and that, while most work to date has focused on wind and solar power, the generation of electricity from marine power is the subject of renewed interest.

Colin Gordon, a Senior Executive with the SE Energy Team, said: “It is reckoned wave and tidal power will yield a UK-based market alone worth £90million in the next few years, so there are potentially big opportunities for Scottish companies providing a variety of technologies and services.

“Scotland has been encouraging the sector for some time – last year, for example, the Scottish Executive announced plans to introduce a multi-million pound support mechanism for the sector.

“We also have a very strong academic base, we play host to a number of marine energy technology developers, we have an established marine engineering sector and, of course, we have an international reputation in offshore industries.

“Combined with the fact that Scotland has the majority share of the Europe’s huge natural wave and tidal energy resources, it means Scottish firms already enjoy key strategic advantages and are well placed to take advantage of the opportunities in this sector.

You can download the report: Marine Renewable (Wave and Tidal) Opportunity Review from the SE Energy Team website.

Bill Phillips
PR Contractor for Scottish Enterprise Energy Team
Tel: +44(0)1224 224433
Mobile: 07970 544663
Email: bill.phillips@scotent.co.uk.

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