UK Govt orders review of tidal lagoon feasibility

12 February 2016


The UK Government has commissioned an independent review into the feasibility and practicality of tidal lagoon energy in the country.

In a statement, the Department of Energy & Climate Change said that whilst progress has been made to understand this technology, more work needs to be done to determine whether it presents value for money, and how they could contribute to the future of the UK's energy mix in the most cost effective way.

The review is to begin this spring , with industry stakeholders, including Tidal Lagoon Swansea Bay - the proposed developers of Swansea Bay Tidal Lagoon - expected to take part.

"Tidal Lagoons on this scale are an exciting, but as yet an untested technology. I want to better understand whether tidal lagoons can be cost effective, and what their impact on bills will be - both today and in the longer term," said Energy Minister Lord Bourne. "This review will help give us that clarity so we can determine what role tidal lagoons could have as part of our plans to provide secure, clean and affordable energy for families and businesses across the country."

The review will consider:

  • An assessment of whether, and in what circumstances, tidal lagoons could play a cost effective role as part of the UK energy mix;
  • The potential scale of opportunity in the UK and internationally, including supply chain opportunities;
  • A range of possible structures for financing tidal lagoons;
  • Different sizes of projects as the first of a kind;
  • Whether a competitive framework could be put in place for the delivery of tidal - lagoon projects.

Tidal Lagoon Swansea Bay welcomed the launch of a Government review, with Mark Shorrock, chief executive, suggesting that it was a clear signal that the government sees the potential advantage for the UK energy consumer in very long-dated tidal energy infrastructure assets.

He did however, express concern about the continuing delay in considering the Swansea Bay project: "It is imperative that we conclude our structuring and commercial negotiation with Government within the next 6 weeks. This is entirely possible; the review should not impact the finalisation of our commercial discussions. To unlock the potential of tidal lagoon power, we need investment in a demonstration project that will grow the supply chain and build investor confidence that an exceptionally long-term project can go forward in today's UK electricity market.

"The project planned for Swansea Bay is ready to go now. We have built a team, secured planning permission, secured equity sponsors, prepared a delivery team and a supply chain. We have received overwhelming support for this project locally, nationally and internationally. If tidal lagoon power at scale is to be a real option for the longer term, we need to start work on Swansea Bay Tidal Lagoon now."



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