CfDs are the Government’s primary way of encouraging investment in the green energy sector by incentivising the production of energy using low-carbon sources.
The £20million boost will bring the UK’s total funding for the fourth allocation round to a record £285million per year.
Business and Energy Secretary Kwasi Kwarteng said: “As an island nation we are perfectly placed to capitalise on clean marine energy, building on our booming offshore wind sector which is now a British industrial success story.
“We hope to see marine energy follow in the successful footprints of other renewable technologies, where we’ve seen costs fall dramatically in recent years thanks to UK government support.
“The investment today provides a major push for tidal power to become a key part of the next generation of renewable electricity projects needed to strengthen energy security as we work to reduce our dependency on volatile fossil fuels.”