Project Summary:
Project will produce 30MW of reliable electricity, at a lower price and risk than existing tidal stream projects; resultant from its design, collaborative nature and commercially minded approach. The project internal rate of return (“IRR”) will be dependent on the level of project debt gearing over 15-year operations, and supported by a strong revenue subsidy.

Resource & Yield:
Tidal flows/yield: strong throughout water column; ebb and flood current speeds similar and bi-directional; peak 3.2m/s; mean spring peak 2.6-2.9m/s. Estimated yield ~80,000MWh/y (approx. 15,000 homes).
Depth variation: 35-75m.
Site characteristics: representative of majority of globally exploitable tidal energy sites.
Site suitability: can facilitate wide range of different turbine technologies

Project Components:
The 30MW project is split into three distinct components: grid works/connection; core electrical infrastructure; and offshore generation arrays.
The project parameters have been optimized through industry consultation, front end engineering design and an environmental impact assessment:
• Number of turbines – up to 60
• Number of arrays – 3 to 6
• Array capacity – up to 10MW
• Overall project life – 25 years

Off-take Revenues:
The Project SPVs will secure Power Purchase Agreements (“PPAs”) and Contract for Difference (“CfD”) contracts (est. £305/MWh for 15 years). The CfD Round 2 auction is expected to commence at the end of 2016; Project has already secured the eligibility criteria for this and continues to engage with the Department of Business, Energy and Industry Strategy as CfD policy maker, National Grid as the CfD delivery body, and Low Carbon Contracts Company as the CfD counterparty.

Project Costs & Economics:
Costs – 30MW:
• £140-160m – est. total construction cost
• >£7m – est. operations cost p.a.
Economics – 30MW:
• Forecast revenues over 15 years ~ £450m
• Project value expected to increase >100% at financial close – scheduled for Q3 2017

Current Investment Requirement:
• £2.7m invested to date
• £2.1m required to take the project to full financial close.

Posted Oct 30, 2016

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Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness.