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Four turbine developers linked to Anglesey tidal energy project, Morlais, have secured º£½ÇÊÓƵ Government renewable energy contracts to generate a total of 28 MW of energy. The Contracts for Difference (CfD) were awarded as part of the º£½ÇÊÓƵ Government’s latest renewable energy auction round (AR5).

They provide developers with a guaranteed maximum price for the energy they generate, giving firms security should electricity prices fall while keeping household bills lower if electricity prices rise. Three developers, HydroWing, Môr Energy, and Verdant Power, secured contracts for the first time. While Spanish developer Magallanes secured a 3MW extension to its existing contract provided in last year’s auction round (AR4).

All four will be able to generate a total energy capacity of 28 MW - enough to power all of Anglesey’s domestic properties. The contracts are also expected to boost Anglesey’s ambition to be a centre of excellence in tidal energy and attract future investment into the area.

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Going forward, the companies will now work with the supply chain in Wales while preparing to deploy their technology off the coast of Holy Island. Morlais said it will continue to support developers preparing for the next Westminster auction round in Spring 2024.

Morlais director Gerallt Llewelyn Jones said: “This is great news for us at Morlais and for the tidal energy sector in Wales. It is a major step forward and paves the way for commercial deployment of tidal stream technology in Wales. By working with the developers we now have the potential to attract over £50 million of investment to the area and create significant local job opportunities, this has always been central to our plans for the project.”

Richard Parkinson, Managing Director of HydroWing, added: “The successful AR5 application is the culmination of a huge effort from our team to develop a more efficient and cost-effective tidal energy solution for Morlais. We look forward to working closely with Menter Môn and with our supply chain partners in Anglesey to deliver our first 10MW of clean and predictable power to the Anglesey grid.”

Welcoming the news, Welsh Government Minister for Climate Change Julie James said: “These schemes are an important step forward in delivering on our commitments on green energy and reflect the hard work of the many partners working on Anglesey, Wales' energy island.

The largest consented tidal energy development in the º£½ÇÊÓƵ, Morlais has the potential to generate up to 240 MW of clean low carbon electricity.

Plans for Wales’ first floating offshore wind farm in the Celtic Sea were set back following the results of AR5, after Blue Gem Wind, the Pembrokeshire-based developer behind Project Erebus, confirmed it did not bid for a renewable energy contract because rising costs meant the price offered by Westminster was not sufficient. It comes as the auction failed to attract a single bid from offshore wind developers across the º£½ÇÊÓƵ.