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Home » Tidal Lagoon Swansea Bay welcomes government review but says it mustn’t be a substitute for action

Tidal Lagoon Swansea Bay today welcomed the launch of a Government review into the potential for tidal lagoon energy across the UK.

Mark Shorrock, chief executive, said: “This is a huge step from the UK Government and a clear signal that it sees potential advantage for the UK energy consumer in very long-dated tidal energy infrastructure assets.

“There is vast potential for tidal lagoon power to provide cheap long-term renewable energy at scale and to be taken formally into national policy.

“We welcome the opportunity to put the case for a major programme of cost-effective power.  This is a home-grown source of power, the natural way to power our nation.  We have built a supply chain which puts UK companies at the forefront of a new world-leading technology.”

Continuing, Mark Shorrock expressed concern about the continuing delay in considering the demonstration first-of-a-kind tidal lagoon for the UK.  He said:  “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.

“Swansea Bay Tidal Lagoon is an appropriately small pilot project that gives rise to large scale projects.  Investing in this project could add as little as 10p to householder’s bills. The first large scale lagoon to employ its blueprint could take £5 off householder’s bills

“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.  Otherwise the opportunity will be lost and the review will be all for nothing.

“We want to give birth to a tidal range industry. We want to return steel workers into jobs. We want to make our own turbines and generators here in the UK, we want to bestow a legacy on Great Britain from Wales of 120 year life power.  But none of this will be possible if we don’t start now.

“A welcome review should not be a substitute for action.  There is a serious and growing gap of electricity generation capacity.  We need 16 new large scale power stations. The cheapest new power stations will be tidal lagoons, roof-top solar power and gas fired power stations.  We need all three and quickly. And when the nuclear stations are ready, we will probably need them too, but their timescales are more uncertain.

“This country either started or scaled many of the world’s industries, including many of the world’s energy industries. Energy in the UK has become a completely regulated market where all operators and technology forms – from fossil fuel, to nuclear, to renewable – depend on direct or indirect subsidy. All non-hydro lowcarbon energies – solar, biomass, wind, and especially nuclear – have been conformed to favour foreign providers of the technology. We lose jobs, we lose time. Importantly, we also have lost baseload power.

“The tidal lagoon fleet breaks this unfavourable tradition. We will capitalise on a natural advantage. With speed we will deliver baseload power at a nuclear scale and a lower cost.  Today’s review will ensure that we are able to consolidate this understanding in the market.

“We have made a value-for-money proposition to Government. There is no reason not to press on with Swansea Bay Tidal Lagoon negotiations.

“Recognising the extremely long asset life of a tidal lagoon enables the overall financing costs to be significantly reduced.

“The world-first tidal lagoon that carries on its shoulders the launch of a global industry now requires a lower level of subsidy support than any offshore wind farm ever built in the UK.

“We have proposed an equivalent CfD strike price for the 320MW Swansea Bay Tidal Lagoon below that of offshore wind.  Our structure has a subsidy that reduces over time, meaning that for around half of the proposed 90-year contract, the lagoon pays money to Government.

“By linking Swansea Bay Tidal Lagoon to the successful delivery of a second, fullscale lagoon, this approach further reduces the required and proposed equivalent CfD strike price of Swansea Bay to under £100/MWh, comparable to the Hinkley C nuclear power station.

“Application of these bespoke support structures to the Cardiff Tidal Lagoon, a

2,700MW capacity project, the equivalent CfD strike price requirement is

£68.30/MWh.  It is excellent to have an independent review to substantiate how tidal lagoons can bring down electricity bills immediately after demonstration stage while providing Victorian-style infrastructure legacy.

“Our company’s vision is to harness the tides to generate our power, and to establish a new global industry in the UK.  Today’s review launch confirms a strong interest from Government in this vision.

“We look forward to continuing to work with Government on the delivery of this vision, including on the most efficient financial support structures for tidal lagoons.  But we will be pushing for Government support to demonstrate the potential of tidal lagoon power by giving the go-ahead for the Swansea Bay project, thereby avoiding the still birth of a game-changer for UK energy and UK industry.”


Please click here to read the full press release.