As part of yesterday’s Budget Chancellor of the Exchequer George Osborne has announced that the Government has decided to enter in to the first phase of negotiations on a Contract for Difference for Swansea Bay Tidal Lagoon.
He also told MPs that the list of designated energy-saving and water-efficient technologies qualifying for an Enhanced Capital Allowance will be updated during summer 2015, subject to state aid approval.
The Government believes that there is significant potential for the deployment of tidal lagoons and tidal range technologies. Lagoon technology could theoretically contribute up to 25TWh/year, the equivalent of 8% of the UK’s electricity consumption in 2013 of indigenous, predictable and low carbon electricity.
The Chancellor said the Government has decided to enter negotiations (without prejudice to the planning decision on the project), to determine whether the project is affordable and value for money for consumers, and whether it will drive down costs for tidal lagoon energy in the UK.
Commenting on the Budget announcement that negotiations are now open to progress plans for a Tidal Lagoon in Swansea, Keith Jones, Institution of Civil Engineers (ICE) Wales Cymru Director, said:
“I am delighted to see the support for the proposed Tidal lagoon in Swansea. Whilst there are many steps to be taken before this scheme can start, this is an excellent example of a project that could provide regular and predictable renewable energy.
“Wales has long coastline and the Severn’s tidal range is the second highest in the world. The proposed Lagoon presents a promising opportunity to capture the enormous potential source of sustainable energy from the sea.”
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