Firm admits 'uncertainty' over tidal power plan

Perpetuus Tidal Energy Centre planned to lease out space for underwater turbines

An energy firm says there is "material uncertainty" over its plan to generate tidal power off the UK coast.

Perpetuus Tidal Energy Centre (PTEC) has been working since 2012 on a proposed array of underwater turbines near the Isle of Wight, supplying enough power for a third of the homes on the island.

In its latest annual accounts, the company said it needed additional investment as well as a favourable government contract.

It says uncertainty over those matters "may cast significant doubt on the company's ability to continue as a going concern".

PTEC has been working on an initial 30MW demonstration project, supported by a £1m loan from Isle of Wight Council.

However, it previously said it had been "forced into hibernation" after failing to win government contracts.

It won planning permission in 2021 to build a sub-station and install cabling, but the permission expired in December 2024.

The turbines would be installed 1.5 miles (2.5km) off St Catherine's Point

Previously, the firm reported in its annual accounts that it was "continuing to make good progress towards achieving commercial success".

However, in its latest filing it said: "The company's ability to continue to meet its financial obligations is dependent on... [winning] one of the Contract for Difference schemes which is the government's main mechanism for supporting low carbon electricity generation.

"In addition, the company will need to secure additional funding from both public and private bodies.

"The directors are taking steps to address these matters, but there is no certainty that these efforts will be successful."

The accounts confirmed that the £1m council loan remains due for repayment in 2027.

Bids for the latest round of the government's Contracts for Difference scheme closed on 14 April, with results expected later this year.