The company behind DeltaStream — the first full-scale tidal-power generator to be developed in Wales — has announced a deal to sell its electricity to EDF Energy, making it among the world’s first grid-connected demonstration devices to generate tidal power.

The device, developed by tidal-stream technology company Tidal Energy Ltd (TEL), was unveiled in August at Pembroke Port by First Minister Carwyn Jones. It will be installed in Ramsey Sound, Pembrokeshire, and is expected to begin generating electricity for Welsh homes shortly afterwards.

The power purchase agreement guarantees that EDF Energy — the UK’s largest supplier of low-carbon electricity — will buy electricity from the device for the first year of the project at a pre-agreed price, ensuring that it will be able to generate revenue for TEL from both the electricity market and the Government’s Renewables Obligation subsidy scheme.

Martin Murphy, TEL’s managing director, said: “DeltaStream is not just about proving a new, innovative technology; it is about proving that tidal power can make a real and lasting contribution towards the UK’s renewable energy targets and energy security. Taking the first steps to commercialisation, by securing a buyer for the electricity generated, is essential to that.”

Dan Brimelow, export sales and procurement manager at EDF Energy, said: “The UK needs electricity generation from a range of low-carbon sources. By taking the time to understand TEL’s plans, we structured a PPA that gives them the income certainty they need to satisfy investors and also manages the risks around forecasting how much power they would produce.”