Thursday 23 April 2009 - re-News - The Dutch government has delivered a blow to the sector by setting the rate for a new marine feed-in tariff so low that plans for two flagship demonstration projects have been rendered uneconomic.

Development teams from two leading projects briefed ministers that a €0.37/kWh tariff would guarantee the economic viability of their schemes. There was therefore disappointment all round when the government recently unveiled its 2009-2010 tariff at just €0.125/kWh.

Ministers are in further discussions with industry. One possibility is the implementation of a dedicated €15m fund to either prop up the two schemes or to realise 3.5MW of other tidal stream projects in the next two years. On the water Econcern, subsidiary Ecofys Netherlands is commissioning a pilot 30kW hybrid wave-tidal vertical axis turbine, at a Total refinery marine depot near the Borsele in the Westerschelde river delta.

This project, dubbed C-Energy, is intended to demonstrate the technology to attract investment for a multi-megawatt installation in storm barrages in the Oosterschelde in Zeeland province. Compatriot developer Tocardo has similar ambitions for a 1.5MW floating version of ts in-stream turbine in the Marsdiep tidal race between the island of Texel and the Dutch mainland.

Tocardo recently secured some funds from Dutch investor E2 Cleantech1 for its offshore turbine and is planning a further fundraising round later his year. The concern is it will not to be able to attract sufficient capital without a clear policy in place to guarantee the project provides a return.

If no further government funds are committed Ecofys and Tocardo are likely to abandon their home country altogether and take their technologies broad. Ecofys has pre-qualified for a 10MW Pentland Firth seabed lease under the Evelop project development group umbrella. Tocardo has set up a UK subsidiary in Wick, Scotland, and has secured one of the last remaining grid connection
offers with operator Scottish & Southern Energy.

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