Hopes for Swansea Tidal Power Lagoon to Be Dashed Next Week

Renewable energy is a hot topic at the moment and is taking up a lot of time in governmental debate halls around the world. Next week, the UK government plans to reject a tidal power lagoon project in Swansea Bay that would total £1.3 billion in construction costs.

The proposal for the tidal plant came from Tidal Lagoon Power. The project already had provisional backing from various financial institutions, led by Prudential, of £200 million. It would consist of a horse shoe shaped wall, lining the sea and kitted with underwater turbines. These turbines would generate energy from tidal movements.

It was hoped by the company that this project would be the first of many around the country. It was also thought that the technology underpinning the project would be exported overseas. It seemed to be a good alternative to fossil fuels.

However, it has all been a short-lived dream due to the level of subsidy Tidal Lagoon Power has demanded from the British taxpayer. This cost is far higher than other low carbon schemes.

Although the Welsh government has already offered a generous £200 million in financial support to help the scheme find its feet, the project still needs the say so from the British government. It is here that the plans are destined to fail.

One figure in senior government explained there was “a cat’s chance in hell” that the project would get the go ahead. Another noted that a fortnight ago saw ministers discussing the decision to say no and formulating plans to offset the potential negative political impact it might have. One solution was to offer support for other Welsh low-carbon energy projects.

Thus, the announcement regarding the tidal project will be given on the same day that the government gives its approval to the new Welsh Wylfa power station.

Yet, there will still be some kick back from the people of Wales as a result of this decision. Carwyn Jones, the first minister for Wales, has explained that the rejection will be “another kick in the teeth”, especially in the wake of the reneged promise to electrify the train line west of Cardiff.

Jones carried on by stating that this type of technology is world leading and that the construction of the lagoon would have opened up 1,000 jobs in construction and maintenance. For the people of Wales, it is becoming clear that their country is not a priority for the UK government. It does not want to be a pioneer – instead the UK wants to see other people use tidal technology successfully first and then jump on the bandwagon.

It is understood that Tidal Lagoon Power has laid off 20 full time staff recently leaving their full time workforce standing at just 30.

The Department for Business, Energy and Industrial Strategy issued a statement explaining that the most important thing was to minimise the impact on the consumer. Given the high subsidy required for the project, it was an injustice to go ahead at the expense of the taxpayer. The Swansea proposal would be more than twice as expensive as the Hinkley Power Station. It was concluded that in order to get the go ahead the project would need to represent better value for money.

Tidal Lagoon Power replied by pointing out that the UK government wants homegrown, cheap energy and that is exactly what the project will offer.


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