The UK government has announced an independent review into the feasibility and practicality of tidal lagoon energy in the UK.
Whilst progress has been made to understand the technology behind tidal lagoons, which have the potential to provide the UK with clean and secure energy, more work needs to be done to determine whether they present value for money, according to the UK government.
In recognition of this, the UK government has commissioned a review of the technology to improve the understanding of how tidal lagoons could contribute to the future of the UK’s energy mix in the most cost effective way.
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.
Nicholas Bourne, UK Energy Minister, said: “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.
“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 government has also said it expects Tidal Lagoon Power, the proposed developers of Swansea Bay Tidal Lagoon, and other industry stakeholders to take part in the review while discussions about Swansea Bay tidal lagoon continue.
To remind, Tidal Lagoon Power delayed the beginning of construction works on the Swansea Bay tidal lagoon project for a year due to the stall in negotiations with the government regarding the subsidies for the lagoon.
This review will take place in consultation with the relevant government departments, in particular DECC and HM Treasury for financial aspects.