By Paul Homewood
Plans to build the world’s first tidal power lagoon have been thrown out by the UK government.
Ministers said the £1.3bn project was not value for money, despite claims by developers Tidal Lagoon Power (TLP) a revised offer made it cheaper.
The scheme off Swansea Bay also had £200m backing from the Welsh Government and support from the Wales Pension Partnership.
But the UK government said it would not pay TLP the fee it wants for energy.
However, TLP claimed no talks have taken place for more than a year and supporters of the project have vowed to do what they can to make it a reality.
Business and Energy Secretary Greg Clark told the Commons: "Securing our energy needs into the future has to be done seriously and, when much cheaper alternatives exist, no individual project, and no particular technology, can proceed at any price."
First Minister Carwyn Jones tweeted that it was a "crushing blow to Wales".
"The UK government’s decision to pull the plug on Swansea Bay Tidal Lagoon is short-sighted and demonstrates their complete lack of ambition," he added.
Welsh Secretary Alun Cairns said: "I realise the disappointment this decision may cause, but ultimately this project did not meet the threshold for taxpayer value."
There have been a number of calls among Labour MPs for Mr Cairns to go.
Plaid Cymru’s energy spokesperson, Liz Saville Roberts MP, said the UK government’s "decision demonstrates the need for Wales to gain greater control over its own future".
Welsh Liberal Democrat leader Jane Dodds called the decision a "disgrace", as did Gower Labour MP Tonia Antoniazzi.
The announcement brings an end to 18 months of waiting since an independent review, commissioned by the ministers, recommended building the lagoon.
The review by former energy minister Charles Hendry said Swansea should be used as a test of the technology, before allowing other developers to bid to construct further schemes as part of a competitive tendering process.
The UK government has been accused of dragging its heels since then, during which time they repeatedly stated the scheme must prove "value for money".
TLP claims the Swansea project would provide power to 155,000 properties in Wales and is cheaper than nuclear power.
The developers had previously asked for a 90-year contract with the UK government with an average strike price – a guaranteed price for the electricity generated – of £89.90 per megawatt hour.
The new nuclear power station at Hinkley Point C in Somerset was given a strike price of £92.50/MWh for 35 years.
https://www.bbc.co.uk/news/uk-wales-south-west-wales-44589083
Inevitably there is a lot of whingeing from Welsh politicians, but as the BBC also point out, all of the proposed tidal lagoons could cost the average British householder up to an additional £700 between 2031 and 2050, or the equivalent of £15,000 for every household in Wales.
If the Welsh government and local MPs want a lagoon at Swansea, let them pay for it.
There is still some confusion over the actual price proposed by Mark Shorrock, though the BBC seem to think it starts at £123/MWh, triple the market rate.
While partial indexing means it will get relatively cheaper over time, that is no consolation to bill payers in the next few decades.
For once the government has made the sensible decision, as far as energy policy is concerned.
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June 25, 2018 at 12:40PM
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