Two UK and one Irish tidal project are among the 23 renewable energy schemes to receive part of €1.2bn (£1bn) under the first call for proposals for the EU NER300 funding programme.
Kyle Rhea, an array of tidal turbines with capacity of 8MW between the Isle of Skye and the Scottish mainland, received €18.4m (£15m) while an array of ten 1MWe grid-connected tidal turbines in the Sound of Islay was awarded €20.7m (£16.8m).
The companies behind each tidal project are Marine Current Turbines and Scottish Power Renewables, respectively.
UK Energy and Climate Change Minister Greg Barker said:
“European funding for Scottish Power Renewables and Marine Current Turbines’ tidal projects is great news for the UK’s marine energy sector and further underpins the UK’s position as a world leader in this source of clean green power.
“This new investment is a fantastic opportunity for these projects to demonstrate the future potential of marine energy and I am delighted that two UK firms have the chance to take advantage of this funding and drive forward further development of tidal technologies.”
Meanwhile, €19.8m was awarded to the West Wave project off the west coast of Ireland, where six wave energy capture devices will be placed at a depth of 15 metres.
The other projects to receive funding cover a wide range of renewable technologies - bioenergy (including advanced biofuels), concentrated solar power, geothermal power, wind and distributed renewable management (smart grids).
Projects will be co-financed with revenues obtained from the sale of 200 million emission allowances from the new entrants' reserve (NER) of the EU Emissions Trading System.
Once up and running, these projects will collectively increase annual renewable energy production in Europe by some 10 TWh, the European Commission said.
Climate Action Commissioner Connie Hedegaard said:
"This year Christmas has come early - today's decision is a major milestone in EU climate policy. The NER300 programme is in effect a 'Robin Hood' mechanism that makes polluters pay for large-scale demonstration of new low-carbon technologies.
“The €1.2 billion of grants – paid by the polluters - will leverage a further €2 billion of private investment in the 23 selected low-carbon demonstration projects. This will help the EU keep its frontrunner position on renewables and create jobs here and now, in the EU."
NER300 funding will provide up to 50% of the 'relevant costs' of the project, a term in essence meaning the additional costs compared to existing, proven technologies; the rest will be covered by private investment and/or additional national funding. NER300 funding will be made available on an annual basis, based on proven performance (the amount of green energy produced) and the meeting of knowledge-sharing requirements.
However, no carbon capture and storage (CCS) project could be awarded funding as most schemes put forward by Member States were not confirmed.
The Commission said it will proceed swiftly with the implementation of the second call for proposals, covering unused funds from the first call as well as the revenues of the remaining 100 million allowances in the new entrants' reserve.