The UK's Department of Energy and Climate Change (DECC) has boosted plans for tidal lagoons in the UK in a series of announcements following Chancellor George Osborne's recent UK Budget statement.
Noting that tidal lagoon energy 'could provide up to 8% of the UK's electricity', the DECC said the government was keen to explore its potential. It announced that it plans to enter into the first phase of bilateral negotiations on a Contract for Difference for the Swansea Bay Tidal Lagoon project, in a bid to help it establish if the proposed project is both affordable and represents value for money for consumers.
Commenting on the announcement, RenewableUK, the trade association representing the wave and tidal industry, said this was a significant step forward towards building the first tidal lagoon of its kind in the world.
"This pioneering project would ensure that Wales and the UK stay at the forefront of marine energy, providing clean electricity for 120 years and creating 2,000 jobs in the construction phase alone," said Wave and Tidal Development manager Dee Nunn. "By enabling this project to go ahead, the government will also unlock the potential for other, larger tidal lagoons to be developed.
The DECC also announced that £20 million of new funding will be used to support collaborative industry geoscience that will improve understanding of the UK Continental Shelf. To help reduce electricity bills the government will also introduce competitive tendering for onshore transmission assets, in a move that could reduce the cost of building transmission assets by up to 12%.
