UK leases first commercial marine energy sites

LONDON, March 16 (Reuters) - Britain has agreed leases for 10 sites in Scotland's Pentland Firth and Orkney waters where developers plan to install marine energy projects to supply up to 750,000 homes with electricity by 2020.

The 600 megawatts of wave power and 600 MW of tidal energy proposed by developers for installation over the next decade have been awarded in the world's first commercial wave and tidal leasing round as Britain tries to catch up in the race to cut carbon emissions from the energy sector.

"Today marks a major milestone in the global journey towards a low carbon future, with the commercial-scale deployment of marine renewables set to power our economies and help safeguard the planet for generations to come," Scotland's first minister, Alex Salmond, said.

Strong currents surging around and between Scotland's coastal islands make these waters particularly suitable for tidal and wave energy.

"These waters have been described as the Saudi Arabia of marine power and the wave and tidal projects unveiled today -- exceeding the initial 700-MW target capacity -- underline the rich natural resources of the waters off Scotland."

With Britain aiming to cut carbon emissions by 80 percent by 2050 from the 1990 level, Scotland is aggressively promoting renewable energy, including offshore wind. [ID:nLG617473]

The agreements were reached with the Crown Estate, an independent body that owns the seabed within 12 nautical miles of the UK coastline.

"The Crown Estate's leasing round is a significant milestone for the marine energy sector and is a key step towards the industry's commercialisation, enabling it to meet its full potential to deliver clean sustainable power as well as highly skilled long-term employment," Martin McAdam, Chief Executive Officer of Aquamarine Power, said.

"Harnessing the power of the sea to produce clean energy will play a crucial role in our future energy security and in meeting the UK's climate change objectives," said McAdam, whose company is involved in a wave power project.

The developers who have signed site Agreements for Lease with the Crown Estate are:

WAVE:

- SSE (SSE.L) Renewables Developments, 200 MW for Costa Head.

- Aquamarine Power & SSE Renewables Developments, 200 MW for Brough Head.

- Scottish Power Renewables (IBE.MC), 50 MW for Marwick Head.

- E.ON (EONGn.DE) 50 MW for West Orkney South.

- E.ON, 50 MW for West Orkney Middle South.

- Pelamis Wave Power Ltd, 50 MW for Armadale.

TIDAL:

- SSE Renewables Developments, 200 MW for Westray South.

- SSE Renewables Holdings & OpenHydro Site Development, 200 MW for Cantick Head.

- Marine Current Turbines, 100 MW for Brough Ness.

- Scottish Power Renewables, 100 MW for Ness of Duncansby. (Reporting by Daniel Fineren, editing by Anthony Barker)