Apply for the Saltire Tidal Energy Challenge Fund

This £10 million fund aims to help commercial deployment of tidal projects. Deployment of projects has been extended to September 2020.

Additional criteria

Economic and social impact of projects: guidance for applicants

The application should, where possible, quantify the economic impact of the project to Scotland. 

Details of positive economic impact should seek to cover: 

  • capital investment and Scottish supply chain impact (e.g. proportion of capital expenditure expected to be retained in Scotland, key Scottish suppliers)
  • number of full-time equivalent (FTE) jobs to be safeguarded (split by direct employees and contracted workers)
  • number of additional FTE jobs to be created (split by direct employees and contracted workers)
  • expected increase in sales/turnover as a result of the project

The application should also provide details of any wider economic benefits associated with the project.  Where it isn’t possible to quantify the economic impact of the project, the application should clearly articulate in qualitative terms how the project is expected to deliver a positive and significant economic impact to Scotland.

The Scottish Government wishes to maximise the social impact from projects supported through this fund – positive benefits felt by the wider community and social fabric of an area. Such impacts may include local regeneration, culture and heritage, social care, social inclusion, poverty mitigation, local services, and recreation. Applications should identify any non-financial benefits which may be realised through the project and how these may improve quality of life or encourage behaviour change etc. For example, this may cover the number of beneficiaries, volunteers, learners, trainees, participants, or the impact upon local services or amenities. Consider any further qualitative benefits and list these as appropriate.

Eligible capital costs

Eligible capital costs through the Saltire Tidal Energy Challenge Fund are:

  • financial costs incurred for the purchase of physical assets
  • costs of Project build, installation and construction
  • costs of Project deployment and commissioning
  • non-reclaimable VAT for eligible capital costs
  • pre-approved staff costs where staff members are contracted to work 100% on the capital project

The Saltire Tidal Energy Challenge Fund will only fund actual costs of successful projects, evidenced by invoices.

What we will not support 

Projects supported through the fund are limited to tidal energy projects. Applications for wave energy projects are not invited. A tidal energy device is defined as an installation which generates electricity from the flows of coastal waters caused by changes in tides.

The Scottish Government has to date committed more than £30 million to wave energy through Wave Energy Scotland and intends to support the programme in its current form out to 2020 to 2021.

Projects that are not associated with tidal energy devices with evidence of previous operational deployment will not be supported.

Projects which can already access existing full support and/or funding from alternative sources will not be supported. The Scottish Government works jointly with sector partners that deliver support in other areas and may be able to signpost applicants to alternative funding schemes where possible.

Drawdown rules

Applicants must provide a programme plan as part of their application. A schedule of payments will be agreed with successful projects which will be set out against specific delivery milestones. Funding will only be released upon satisfactory completion of delivery milestones.

Retrospective costs

Retrospective costs cannot be claimed. Costs incurred prior to the formal acceptance of an offer of grant by the grantee will be not be eligible.

Eligible costs and additional grant support

Applications must clearly demonstrate the costs to which the application relates. This is a responsibility on the applicant. Applications must clearly show any additional funding associated with the project, showing a clear separation where costs are supported from multiple sources. Other Scottish public sector grant funding will not count towards matching funding from this fund.


If you have any questions regarding the fund please contact us at:
Post: Scottish Government
Emerging Energy Technologies
5 Atlantic Quay (4th floor)
150 Broomielaw
G2 8LU


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