Business
Statement on CfD Auction
Statement on CfD Auction.
About this update from Ampeak Energy Limited
[{"type":"text","content":"\n \nRNS Number : 3370Q Atlantis Resources Limited 11 September 2017 \n\n11 September 2017\n \nAtlantis Resources Limited\n(\"Atlantis\" or the \"Company\")\n \nStatement on CfD Auction\n \nAtlantis, a global leader in the marine power generation sector, notes today's announcement from the Department for Business, Energy & Industrial Strategy (\"BEIS\") detailing the outcome from the 2017 allocation round for contracts for difference (\"CfDs\") for renewable energy projects. \n \nAs expected, Atlantis's majority owned subsidiary, MeyGen Limited, was not awarded a CfD in this allocation round in respect of Phase 1C of the world's largest tidal stream project in northern Scotland. The Company had forecast a two-thirds reduction in the level of revenue support required for Phase 1C versus that enjoyed by the first phase of the project and submitted a very competitive bid into the auction process. However, this significant cost reduction was not sufficient to allow the project to secure a contract for difference in this auction where it was competing with established technologies such as offshore wind. \n \nThe MeyGen Project\n \nThe first phase of the project, Phase 1A, is approaching 2GWh of generation, and was made possible by the outgoing Renewables Obligation scheme, which provides a means of revenue support in addition to wholesale power prices.\n \nThe significant cost reduction achieved for Phase 1C is accomplished through improvements in the technology, larger turbines, higher volumes, economies of scale and reduced financing costs. The MeyGen project is competing directly with more established renewable technologies such as offshore wind, rather than within a sub-category of earlier stage marine renewables as was previously pledged by the UK government.\n \nThe large-scale deployment of more mature technologies has driven down the costs of generation so that they are now approaching levels which mean projects require minimal subsidy support to be viable. Like the path followed by solar and onshore wind, this cost trajectory supports the rationale for early stage subsidy support for marine technologies.\n \nGiven the significant subsidy reduction already forecast by MeyGen and the opportunity to preserve an important domestic and export tid...