European Commission Names Ocean Energy as Key Technology for Reaching EU Targets

10 July 2025

Member states should target 5% of their newly installed renewable energy capacity to be innovative by 2030, as set by the EU Renewable Energy Directive. Ocean Energy is one of two technologies counting towards this innovative renewables target, according to a guidance for member states published by the European Commission on July 2.

Ocean energy technologies generate renewable electricity from tides and waves, as well as differences in sea temperatures and salinity. Europe is currently the global leader in development and installation of ocean energy technologies. By 2050, ocean energy could provide 10% of Europe’s current electricity needs. The size of the prize is a new industry made in Europe—with 400,000 new jobs, 100 GW of predictable, home-grown renewable power, and export opportunities all over the globe.

In the guidance, the Commission recognizes the system benefits of ocean energy which produces at different times from wind and solar. Wave energy keeps producing after the wind stops blowing and increases in winter when demand is higher and solar production is lower. Tidal is 100% predictable, which the Commission says can boost grid stability and lower system costs. These system benefits were modelled in the EVOLVE project, which showed that even limited amounts of ocean energy can significantly reduce fossil fuel dispatch, emissions, and system costs.

To harness these benefits, the Commission recommends that member states set up ring-fenced revenue support policies to scale up specific innovative renewable energy technologies. This is a proven approach: revenue support through feed in tariffs or contracts for difference (CfDs) scaled up wind and solar to their commercial level today. Already, the UK has contracted a pipeline over 120 MW of tidal power through 3 successive ring-fenced auctions for tidal CfDs.

Remi Gruet, CEO of Ocean Energy Europe, said: “Finally, the Commission is calling on member states to implement revenue support to scale up ocean energy. We know that revenue support works. Every time national revenue support is launched, farm projects thrive and raise private investment, as demonstrated with the tidal sector in the UK and France. It’s time for countries with rich wave resources—Ireland, Portugal, France and Spain—to follow the Commission’s advice and grasp this opportunity by launching CfDs for wave energy.”

“The ocean energy sector is ready to help member states meet the 5% innovative renewables target because the 2030 timeline is aligned with the sector’s project pipeline. The next 5 years are an opportunity to build a new industry made in Europe and bolster the continent’s energy security.”