Government poised to provide more funding for renewables sector

THE UK government is expected to announce further funding for the renewable energy sector following calls for a £100 million fund to support new projects.

Government sources indicated an announcement could come as early as next month, while the wave and tidal industry is also preparing its own funding campaign.

Martin McAdam, chief executive of wind energy developer Aquamarine Power, said UK government funding would help to bring in investment from the private sector.

Demonstrator projects could then be used as a shop window for attracting orders from commercial customers at home and abroad, McAdam said.

Edinburgh-based Aquamarine is developing Oyster 2, a device to turn wave energy into electricity that will be built in Fife and tested in Orkney this summer. About ten such devices would be needed for a demonstrator array.

McAdam told Scotland on Sunday: "We all know about the financial pressures facing the UK government at the moment but developing wave power will create jobs and help manufacturers.

"Ten per cent of Denmark's GDP comes from exporting renewable energy technology. We should aim to reach a similar level so that we keep the benefits of this new industry in the UK."

McAdam will speak at this week's Clean Energy Entrepreneurship & Investment workshop being organised by Edinburgh University's Informatics Ventures unit, which aims to help commercialise research.

Other speakers include Gavin McCallum, investment director at Jim McColl's Clyde Blowers Capital; Joseph Lassiter, from Harvard Business School, and Bill Aulet and Ken Morse, from the Massachusetts Institute of Technology (MIT). Aquamarine has already raised about 42m of funding to develop its technology, including about 12m from public sources.

Johanna Yates, offshore policy manager at trade body Scottish Renewables, said: "Demonstrator projects are the next step towards commercialisation of wave and tidal energy. It's crucial support is provided to ensure we continue to be world leaders and create mas-sive economic benefits."

A Department of Energy spokeswoman said: "We are working across government and industry to identify future funding needs and will make an announcement in due course."