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What role do government subsidies play in the development of tidal power?

Lesley Sjostrom

Hey!

Regarding your question about the role of government subsidies in the development of tidal power, I would say that they are crucial. Tidal power is a form of renewable energy that has great potential, but it requires a significant amount of investment to become a viable energy source.

Governments provide subsidies to tidal power developers to help cover the high initial costs of building the infrastructure required to generate electricity from tidal energy. This support from governments is essential for the industry to develop and bring down the overall cost of tidal power for consumers.

The main advantage of government subsidies is that they enable developers to create economies of scale. As they build more tidal power generators, the cost per unit of electricity decreases, making the technology more competitive with other forms of energy. Additionally, these subsidies encourage investors to fund tidal power projects, which provides further stimulation for continued innovation and technological advances in the field.

One example of a country that has been successful in utilizing government subsidies to develop tidal power is Scotland. The Scottish government invested substantial funds into the development of tidal power, creating the Meygen project, the world’s largest tidal energy plant.

Another reason why government subsidies are critical to the development of tidal power is because the technology is still very much in the experimental stage. As more research is done and more generators are built, the technology will become more efficient and competitive.

However, the transition from fossil fuels to renewable energy sources is complicated and requires huge amounts of investment. The government subsidies can aid in alleviating the uncertainties of investing in a new technology.

In conclusion, government subsidies are essential to the development and commercialization of tidal power. These subsidies provide the funding and support needed to create economies of scale and attract investors to help bring down the cost of tidal energy for consumers. They also help drive innovation and technological advances that are necessary for the tidal power industry to be sustainable and thrive.