Government begins CfD negotiations for tidal lagoon

The Government is due to start negotiations with the developers of a £1 billion tidal lagoon proposed for Swansea Bay. Chancellor George Osborne made the announcement for the commercial negotiations on contracts for difference for the developers.

The project could create generation of 500GW per year. This is equivalent to powering 120,000 homes.

Energy Secretary, Ed Davey said:

“Britain has some of the best tidal resources in the world – tidal lagoons could provide 8% of our electricity needs, replacing foreign fossil fuels with clean, reliable home-grown electricity and creating fantastic economic opportunities.” The negotiations will focus on whether CfD’s will be a cost effective option for consumers.

Mark Shorrock, Chief Executive of Tidal Lagoon Power: "The Swansea Bay Tidal Lagoon establishes a blueprint for a major new source of low carbon power. It's a game-changer; in a single step it presents the option to harness indigenous, renewable electricity at a low cost and a nuclear scale. These projects can now be developed relatively quickly and will outlive all of us.” "We are already applying the Swansea Bay blueprint to the development of larger projects and working to ensure that the British supply chain mobilised for the first lagoon can scale accordingly. The Government recognises that we cannot afford to overlook these opportunities.”