Tidal energy is often overshadowed by the ever-scaling march of wind and solar, yet its appeal lies in something more occasionally precious than capacity, consistency. Unlike solar PV or onshore wind, tidal turbines tap into the reliably cyclical surges and ebbs of ocean currents. When properly sited, these devices can generate electricity with high predictability, rounding out intermittent generation and smoothing system forecasts. That alone warrants investor interest.
Recent developments in the sector demonstrate both ambition and pragmatism. Scotland’s Pentland Firth hosts the MeyGen array, four turbines producing 6 MW, yielding roughly 10 GWh in 2023, and carving a path toward a projected 400 MW build‐out . Just down the coast, Orbital Marine Power’s floating O2 turbine contributes 2 MW and is part of a broader plan to integrate tidal energy with green hydrogen production via electrolyser systems . Offshore Wales, Swansea Lagoon may yet see a commercial revival under “Blue Eden”, with fresh investment in a private-led scheme since 2023 .
Emerging technologies are also gaining traction. Swedish‑based Minesto employs “tidal kites”, underwater aircraft that traverse currents in figure‑of‑eight patterns, boosting energy output in slower flow areas. Its Dragon units, including a 1.2 MW model installed in the Faroe Islands, are set to reach multi‑array scale . These advances introduce new options for geographically varied coastlines and flow conditions.
Still, the path forward is not without obstacles. The sector remains in its early innings, with most deployments still small-scale or demonstrator projects. Historical stumbles like the collapse of France’s OpenHydro under Naval Energies and the UK’s shelving of Swansea Lagoon in 2018 underscore the capital intensity and policy risks . That said, policy support is beginning to catch up: the UK CfD programme is ring-fencing tidal stream projects, aiming to bring over 120 MW online by 2029 .
Economic research supports this momentum. As installed capacity scales and engineering designs coalesce, costs are projected to decline, particularly through economies of scale in array deployment, and optimisation of turbine spacing and sizing . When capital costs and financing risks are managed, tidal can emerge as a complementary, dispatchable renewable asset prized by utilities and regulators alike.
From an investor’s standpoint, this positions tidal energy as a strategic niche, offering consistent Baseload‑like output that fits between wind’s swings and solar’s day‑night cadence. Long-duration predictability becomes highly valuable in markets where grid resilience is as prized as zero emissions.
Asset development strategies are evolving accordingly. Project sponsors are focusing on cluster build-out approaches—expanding once initial units prove successful. Technological diversifications, including fixed seabed turbines, floating structures, and kites, have the advantage of broadening deployment potential. Furthermore, hybridisation with offshore hydrogen systems offers appealing integration value, opening pathways to additional revenue streams.
That said, capital discipline remains vital. Early-stage mezzanine finance and blended public-private structures can mitigate cost and execution risks. Investors should watch for emerging standardisation across supply chains, whether in turbine components, subsea installation, operations or maintenance, as this often precedes sustained cost reductions.
Governments are increasingly recognising this. Scotland offers resource-rich sites; the UK’s recent CfD awards show institutional backing; the EU’s Green Deal has unlocked R\&D grants. Regions with strong tidal potential and stable policy frameworks could benefit from first-mover deployment and the engineering expertise that follows.
Tidal energy harnesses the ocean’s rhythm to deliver clean, predictable power. It complements wind and solar by smoothing intermittency and can integrate into wider clean-energy systems, especially through hydrogen coupling. Investor‑wise, it offers a pathway to differentiated returns—anchored in long‑term contracts, policy support and emerging technology scale —despite higher upfront capital.
An informed bet on tidal today could mature into a cornerstone of tomorrow’s diversified, resilient energy grid.
SAE Renewables Limited (LON:SAE) was founded in 2005 as a supplier of tidal stream turbines, SAE quickly grew to include development of tidal stream projects and is the majority owner of MeyGen, the world’s largest tidal stream energy project. a hub for clean energy storage, SAE exemplifies innovative reuse of industrial sites for modern needs.
