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Wales govt pushes for way forward for tidal lagoon project

Swansea Bay tidal lagoon model. Source: Tidal Lagoon (Swansea Bay) Plc. License: All rights reserved.

June 6 (Renewables Now) - Wales' First Minister Carwyn Jones has written to UK Business and Energy Secretary Greg Clark, proposing joint support from the Welsh and UK governments to make the Swansea Bay tidal lagoon project a reality.

Jones calls for a joint offer to the project's developer, Tidal Lagoon Power, that would consist of an equity or loan investment of GBP 200 million (USD 268m/EUR 228m) by the Welsh government and a contract for difference (CfD) by the UK government on the same terms offered to the Hinkley Point C nuclear power station, or GBP 92.50 per MWh in 2012 prices over 35 years following commissioning.   

According to Jones, the offers strikes a balance between supporting a pathfinder low-carbon project and providing value for money.    

The so-called Hendry Review on tidal lagoons, commissioned by the UK government and completed in early 2017, was supportive of the 320-MW, GBP-1.3-billion project at Swansea Bay.  

The letter comes amid speculation that the UK government is poised to reject the project as it moves ahead with the Wylfa Newydd nuclear power plant project in Wales.

(GBP 1 = USD 1.342/EUR 1.141)  

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Browse all articles from Plamena Tisheva

Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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