Study says tidal lagoons can offer UK's cheapest power

A study by Tidal Lagoon Power of electricity generation costs for different technologies in the UK shows that tidal lagoons can generate the cheapest power on the system.

With “The New Power Cost League Table” the company aims to make an apples-to-apples comparison of the enabling contracts awarded to power projects in the UK, the cost of which is paid by consumers. Mike Edge, the company’s analyst and study author, says that a combination of tidal lagoons, new nuclear and offshore wind can ensure sustainable and secure supply at scale and at a competitively low cost.

The study shows that the large-scale tidal lagoon projects proposed for Cardiff, of about 3 GW total capacity, would bring the cheapest electricity of all new-built power plants. The up to 120 years operational life of tidal lagoons is one of the key factors contributing to their competitiveness.

The table contains Tidal Lagoon Power’s estimates of energy consumer cost over the lifetime of separate technologies in GBP per MWh (2012 prices). The company used the UK Government’s long term reference scenario for the cost of wholesale power out to 2035. After this point the study evaluates two scenarios in which there is a 1% annual increase (+1%) or a 1% annual decrease (-1%) in wholesale cost of power from 2035 onwards.

The study concludes that new gas-fired power stations are only competitive if high load factors can be achieved. It says that a portfolio of tidal lagoons in multiple locations in UK waters with different tidal cycles could provide round-the-clock grid management services.

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