A government-backed review by former energy minister Charles Hendry has given its full backing to the £1.3bn Swansea Bay Tidal lagoon.
In his report today Hendry backs the strategic case for tidal lagoons and the role they could play in the UK’s energy mix, but said a network should not go ahead until one had been built and recommended Swansea be a pathfinder.
Hendry’s independent report into the technology’s viability said it would make a “strong contribution” to the UK’s energy supply.
He estimates that the cost of a tidal lagoon project like Swansea Bay would be about 30p per household per year over the first 30 years. A large-scale project like Cardiff would be less than 50p over the first 60 years.
The proposed 320 megawatt pilot project in Swansea Bay was given planning permission two years ago by Amber Rudd, then energy minister.
But the government has been concerned about the level of subsidies required to make tidal lagoon technology viable.
“I believe that the evidence is clear that tidal lagoons can play a cost-effective role in the UK’s energy mix and there is considerable value in a small (less than 500MW) pathfinder project.
“I conclude that tidal lagoons would help deliver security of supply; they would assist in delivering our decarbonisation commitments; and they would bring real and substantial opportunities for the UK supply chain.
“Most importantly, it is clear that tidal lagoons at scale could deliver low-carbon power in a way that is very competitive with other low carbon sources.
“The aim now is that we should move to secure the pathfinder project as swiftly as possible, so the learning opportunities it offers can be maximised. I have, however, also concluded that the smaller pathfinder project needs to be operational before we move to larger-scale projects.
“This means that a clear long-term government strategy in favour of tidal lagoons will be required if the full supply chain and cost reduction opportunities are to be realised.”
The report makes over 30 recommendations for delivering a tidal lagoon, including establishment of a Tidal Power Authority at arms-length from government to promote schemes.
TLP chief executive Mark Shorrock said there is now “peak consensus” for going ahead with the Swansea Bay scheme following the outcome of the review.
He added: “Home-grown power from the tides, starting at Swansea Bay, is something we can all agree on: communities and investors, conservationists and industrialists, politicians of all persuasions and now an independent government review, all singing from the same hymn sheet.”
