Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, if his Department will work with the Treasury to develop an Innovation in Power Purchase agreement as a complementary proposal for wave and tidal renewable technology developers that are not yet ready to participate in the Contracts for Difference process.

The Government recently ran a Call for Evidence inviting views on the scope for marine technologies across the UK. This concluded on 30th September 2020 and we are currently reviewing the responses received. Government is interested, in principle, in determining whether there could be more effective funding models to support emerging technologies while they reduce their costs to a point where they can compete in the market with other forms of low-carbon generation. The IPPA is an interesting new funding model however, as it is a tax-based instrument, any decisions on its adoption would lie with Treasury. Officials continue to work with HM Treasury on developing policy for renewable energy.