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Swansea tidal lagoon project faces delays Swansea tidal lagoon project faces delays
(35 minutes later)
The proposed scheme to build the world’s first tidal lagoon at Swansea Bay in South Wales has been put back at least a year following delays over the government agreeing the size of any subsidy. The proposed scheme to build the world’s first tidal lagoon at Swansea Bay in south Wales has been put back at least a year following delays over the government agreeing the size of any subsidy.
The £1bn project is also subject to an ongoing investigation into whether a major contract to a Chinese state company to build a breakwater was properly awarded.The £1bn project is also subject to an ongoing investigation into whether a major contract to a Chinese state company to build a breakwater was properly awarded.
The delay will put more pressure on Britain’s stretched electricity generating capacity after 2020 at a time when a timetable to build the Hinkley Point C nuclear plant in Somerset has also been put back.The delay will put more pressure on Britain’s stretched electricity generating capacity after 2020 at a time when a timetable to build the Hinkley Point C nuclear plant in Somerset has also been put back.
Mark Shorrock, the chief executive of Tidal Lagoon told the Guardian last month that he expected to receive the subsidy go-ahead from the government later this year and be ready to bring on power by 2019/2020. Mark Shorrock, the chief executive of Tidal Lagoon, told the Guardian last month he expected to receive the subsidy go-ahead from the government later this year and be ready to bring on power by 2019-2020.
But a spokesman admitted this already looked optimistic. “We’re targeting financial close and a start of activity on site next year, enabling marine works to commence in the favourable weather of spring 2017 and generation of first power in 2021,” he explained. But a spokesman admitted this already looked optimistic. “We’re targeting financial close and a start of activity on site next year, enabling marine works to commence in the favourable weather of spring 2017 and generation of first power in 2021,” he said.
Despite the setback Tidal Lagoon said it was still working flat out on putting the project together with its suppliers. “Next month marks the conclusion of the Advanced Works Phase with our preferred construction partners. All detailed design and pricing work is drawing to a close and our integrated construction programme is fully mapped out. Which means we’ll be ready to build as soon as the remaining permissions have been secured and financial close with investors is achieved.” Despite the setback, Tidal Lagoon said it was working flat out on putting the project together with its suppliers. In a statement, it said: “Next month marks the conclusion of the Advanced Works Phase with our preferred construction partners. All detailed design and pricing work is drawing to a close and our integrated construction programme is fully mapped out. Which means we’ll be ready to build as soon as the remaining permissions have been secured and financial close with investors is achieved.”
The company said it had been told not to comment on the discussions with the Department of Energy and Climate Change (DECC) over subsidies, a highly sensitive subject given the high price being demanded.The company said it had been told not to comment on the discussions with the Department of Energy and Climate Change (DECC) over subsidies, a highly sensitive subject given the high price being demanded.
Tidal Lagoon has previously said it wanted an agreed price of £168 per megawatt hour for its electricity, but believes it would be able to reduce this figure below £100 if it is allowed to proceed with a number of follow-up lagoons.Tidal Lagoon has previously said it wanted an agreed price of £168 per megawatt hour for its electricity, but believes it would be able to reduce this figure below £100 if it is allowed to proceed with a number of follow-up lagoons.
Hinkley Point has attracted a lot of criticism for being given a “strike price” of £92.50 for 35 years at a time when the current price of wholesale power is down at half this level and expected to stay there for some time.Hinkley Point has attracted a lot of criticism for being given a “strike price” of £92.50 for 35 years at a time when the current price of wholesale power is down at half this level and expected to stay there for some time.
A DECC Spokesperson said on : “Tidal Lagoon Power are seeking a significant amount of financial support from consumers for their proposed project in Swansea Bay and we need to carefully consider whether it is in the best interest of bill payers. A DECC spokesperson said: “Tidal Lagoon Power are seeking a significant amount of financial support from consumers for their proposed project in Swansea Bay and we need to carefully consider whether it is in the best interest of bill payers.
“At present there is no timeframe for how long the negotiation process for Swansea Bay tidal lagoon may take. It depends on a number of factors, many of which are outside the control of the government.”“At present there is no timeframe for how long the negotiation process for Swansea Bay tidal lagoon may take. It depends on a number of factors, many of which are outside the control of the government.”
The department also confirmed that the probe into the breakwater construction contract was also ongoing. The department also confirmed that the investigation into the breakwater construction contract was continuing.
The Swansea Bay scheme was included in the Conservative party election manifesto and was given planning permission this summer. But the government has been cutting subsidies to solar and wind power, leading to speculation it might eventually dump the tidal lagoon power which is even more expensive. The Swansea Bay scheme was included in the Conservative party election manifesto and was given planning permission this summer. But the government has been cutting subsidies to solar and wind power, leading to speculation it might eventually dump tidal lagoon power, which is even more expensive.
The project is however seen as a major creator of jobs in an area of high unemployment while also offering a low-carbon prototype that could eventually be rolled out across the globe. The project is, however, seen as a major creator of jobs in an area of high unemployment while also offering a low-carbon prototype that could eventually be rolled out across the globe.
The waters around the scheme have further been muddled by complaints from contractors that they were not given a fair chance to bid properly for the deal won by China.The waters around the scheme have further been muddled by complaints from contractors that they were not given a fair chance to bid properly for the deal won by China.
A spokesman for Tidal Lagoon played down this spat. “As said previously, we ran a series of robust and intensely competitive tenders for the Swansea Bay project. In accordance with procurement best practice, we have now also offered and given feedback to the unsuccessful bidders and addressed any issues raised.” A spokesman for Tidal Lagoon played down this spat, saying: “As said previously, we ran a series of robust and intensely competitive tenders for the Swansea Bay project. In accordance with procurement best practice, we have now also offered and given feedback to the unsuccessful bidders and addressed any issues raised.”