The company behind the long-delayed tidal energy project off the Isle of Wight is facing serious doubts over its future, as directors admit there is ‘material uncertainty’ over whether it can continue operating.
Perpetuus Tidal Energy Centre (PTEC), which holds consents to build a 30MW tidal stream energy facility off St Catherine’s Point, has warned in its latest financial statements that it may not be able to continue as a going concern.
The company says its ability to meet financial obligations depends on successfully securing a Contract for Difference (CfD) – the UK Government’s key support mechanism for low carbon electricity generation.
In a stark assessment, the directors have said:
“The company’s ability to continue… is dependent on the UK Government’s recognition that there is a need to balance early revenue support across the union. This will enable the company to compete fairly to win one of the Contract for Difference schemes…
“In addition, the company will need to secure additional funding from both public and private bodies.”
The directors say steps are being taken to address these issues but acknowledge “there is no certainty that these efforts will be successful.”
This latest development follows years of delays to the scheme, which was originally granted consent in 2016. In 2022, PTEC said it was targeting full operation by 2025, following a resurgence of activity and a new planning application linked to onshore works at Flowers Brook.
However, at the tail end of last year, an application to modify 9 conditions tied to that onshore development was refused by County Hall planning officers, casting further uncertainty over the project’s progress.
The proposal would have supported vital grid connection infrastructure for the offshore array, which remains unbuilt.
Despite efforts to revive momentum, PTEC now faces the dual challenge of overcoming both planning and financial hurdles. Without a breakthrough in Government support or investment, the future of tidal energy generation off the Isle of Wight remains unclear.
Good. The sea bed there is far too unstable.Far better to build the Severn barage.
Such a shame. The planning department seems to be a century behind the issues faced today.
It’s not known as Dinosaur Isle for nothing.
Was always going to fail..
This operation has been questionable from the outset. Originally it was to be financed through EU money, but guess what put the kybosh on that? Now they want the taxpayer to promise future millions: no, thankyou.
Let’s hope IW Council gets its £1M (?) investment back one day (spoiler alert: fat chance).
IW councils luck is out, they lost £350,000.00
due to the cancelled Tour of Britain cycling event.
They must be good at something, investment is
not their speciality.
Lol
This was the wrong project, in the wrong place wth the wrong team. Council was complicit and literally gave time and money to some wealthy people to allow them to get even richer. Hopefully it will be put to bed, tidal might be a good idea in certain places, but in the busiest channel in the world with dubious grid access, well it was dumb…. with apologies to Dave Stewart and Jonathan Bacon who both backed it hard.