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Swansea Bay tidal lagoon backed by government review Swansea Bay tidal lagoon backed by government review
(about 1 hour later)
A new generation of tidal lagoons that could provide the UK with reliable and clean electricity has been enthusiastically backed by a government-commissioned review. Ministers have been urged to stop dithering and strike a subsidy deal for a pioneering tidal lagoon in Wales, after a government-commissioned report enthusiastically backed the technology as a reliable source of indigenous, affordable and clean energy.
The report by a former energy minister urged the government to move to the final stages of negotiations with Tidal Lagoon Power, the company that wants to build a small trial lagoon in Swansea Bay and five larger ones later. Charles Hendry said his independent review of tidal power had concluded a small trial lagoon at Swansea Bay was a “no regrets option” that could open the way to at least five other full-scale projects around the UK.
Environmental groups, engineers and investors welcomed Charles Hendry’s verdict, although some conservationists raised concerns over the local impact on birds and fish and one expert raised concerns over costs. Welsh MP Paul Flynn called tidal power “Wales’s North Sea oil” and Stephen Kinnock, Labour MP for Aberavon, said he was “absolutely delighted” at the green light given by the former energy minister.
But Hendry said he believed the evidence was clear that tidal lagoons could be cost-effective and affordable. Tidal Lagoon Power has already spent £35m on the Swansea lagoon which, if it can agree a subsidy deal in ongoing negotiations with the government, would begin construction next year and create 2,000 jobs. The company wants to build a U-shaped breakwater across the city’s bay and use the incoming and outgoing tide to turn 16 turbines and generate enough electricity for 150,000 homes.
“I would strongly caution against ruling out tidal lagoons because of the hopes of other cheaper alternatives being available in the future.” “I don’t think I have ever been to a community where people are so enthusiastic about a power station. They see this as the project that will bring about the city’s regeneration,” said Hendry. The lagoon would be the first of its kind in the world.
He suggested the Swansea “pathfinder” lagoon would cost households around 30p each a year over the first 30 years, with the five proposed full-scale lagoons each adding less than 50p over the first 60 years. Analysts said that if 10 large lagoons were built by 2030, it would add £8 to £9 to the average annual household energy bill. While environmental organisations, engineering groups and several analysts welcomed the review verdict, some conservationists raised concern over local impact on birds and fish. There is also a campaign against a quarry in Cornwall that would provide the rock for the breakwater wall.
While the report concluded Swansea would be a “no regrets option”, it said the government should wait until that pilot project was complete before green-lighting a series of large-scale lagoons. But Hendry said he believed tidal power’s opportunities outweighed the risk, and argued the evidence was clear that the lagoons could be cost-effective and affordable. “I would strongly caution against ruling out tidal lagoons because of the hopes of other cheaper alternatives being available in the future,” he said.
Hendry’s review was far more positive than many expected when it was commissioned by the government last February, when appetite for tidal power seemed to be cooling. But it is still far from clear whether Tidal Lagoon Power will start construction in Swansea in 2018 as it hopes. The subsidy for Swansea would cost households around 30p on their energy bills annually over the first 30 years, or “around the cost of a pint of milk”, he said. Five full-scale projects proposed by Tidal Lagoon Power, at Cardiff, Newport, Colwyn Bay in north Wales, the Cumbrian coast and Bridgwater Bay in Somerset would add less than 50p over their first 60 years, the review concluded.
Negotiations on a guaranteed price for the electricity the lagoon would generate are still ongoing with the government. The exact figure is expected to be similar to the £92.50 per megawatt hour agreed for the Hinkley C nuclear power station, but over as many as 90 years rather than the 35-year Hinkley deal. Hendry’s review was far more positive than many expected when it was commissioned by George Osborne and Amber Rudd last February, when the government’s appetite for tidal power was seen to be cooling.
“As a pathfinder, as a trial to see it works, yes I think it’s a sensible thing to do [on cost],” said John Feddersen, CEO of analysts Aurora Energy Research. The group said that if 10 lagoons were built in the UK by 2030, they would provide 10% of the UK power generation and cut carbon emissions by 36%. Labour echoed Hendry’s call for ministers to swiftly conclude negotiations with Tidal Lagoon Power on the guaranteed price of electricity from the Swansea project. “The government has repeatedly delayed this project, despite Labour backing it months ago. It’s time to stop dithering and get it built,” said the shadow energy secretary, Clive Lewis.
The price is expected to be similar to the £92.50 per megawatt hour agreed for power from the Hinkley C nuclear power station but over a far longer period than the 35-year nuclear deal with EDF. Hendry said he preferred a 60-year subsidy deal to the 90 years that has been floated, to minimise risks to government.
John Feddersen, chief executive of analysts Aurora Energy Research, said: “As a trial to see if it works, yes I think Swansea is a sensible thing to do [on cost].” The group said that if 10 lagoons were built in the UK by 2030, they would provide 10% of electricity generation and cut carbon emissions by 36%, and add £8 to £9 to the average annual household energy bill.
WWF said tidal power had “considerable potential for generating clean electricity” and Greenpeace hailed the Swansea project as “an opportunity to lead in generating clean power from Britain’s tides”.WWF said tidal power had “considerable potential for generating clean electricity” and Greenpeace hailed the Swansea project as “an opportunity to lead in generating clean power from Britain’s tides”.
Dr Athanasios Angeloudis, at the department of earth science and engineering at Imperial College London, said: “The UK is blessed with some of the largest tidal energy resources in the world and this outcome should be seen as a landmark step towards making the first significant contribution to the national electricity mix from this sustainable energy source.” Dr Athanasios Angeloudis of the department of earth science and engineering at Imperial College London said: “The UK is blessed with some of the largest tidal energy resources in the world and this outcome should be seen as a landmark step towards making the first significant contribution to the national electricity mix from this sustainable energy source.”
But the Wildlife Trusts Wales, which manages more than 200 nature reserves, said it had concerns over the local ecological impact of Swansea and the five other lagoons. The Policy Exchange thinktank, meanwhile, said it would be a folly for government to go ahead with the technology, arguing it was too expensive. The WWF and the RSPB both said they were worried about potential local ecological impacts from the lagoons. But Hendry said after Swansea was operational in 2022, there should be a pause of up to two years before the five bigger lagoons were approved, and any environmental problems could be weighed up then.
The Policy Exchange thinktank and consumer group Citizens Advice raised concerns over tidal power’s cost. The business secretary, Greg Clark, said he welcomed the review into the “untried technology” and he would consider Hendry’s recommendations before responding.