Atlantis Resources plans to seek Contract for Difference (CfD) from the UK government at the price of about 150 £/MWh for the Phase 1C of the MeyGen project.
Atlantis said it intends to ask that the UK government consider entering into bilateral negotiations with the company for the award of a 15-year CfD which would enable the construction of Phase 1C of the MeyGen project without further delay.
Having recently been unsuccessful in its CfD2 bid for the Phase 1C of MeyGen, where it forecasted two-thirds reduction in the level of revenue support required for the phase, Atlantis said the funds for the CfD are still available as 40% of the £290 million budget for the recent auction round was not allocated through the competitive process.
“The outcome of the recent CfD auction will deliver thousands of megawatts of renewable energy projects, with an overwhelming weighting towards offshore wind.
“These new additions to the generation portfolio are welcomed, but must be complemented by a more diverse basket of technologies.
“The proposed price per MWh is half of the administrative strike price for our technology used in the recent auction rounds, and demonstrates our commitment to rapid and significant cost reductions,” said Atlantis in the interim results paper for the first six months of 2017.
The administrative strike price set for tidal energy projects deploying in 2021/22 under the CfD scheme stands at 300 £/MWh.