SUPPORT from the UK Government for the Swansea Bay tidal lagoon appears to be ebbing, following concerns from senior Conservatives about costs.
Prime Minister David Cameron admitted that his enthusiasm for the project was ‘cooling’ and Secretary of State for Wales Stephen Crabb said that a ‘considered decision’ was needed.
“What we want to do is take a considered decision about whether it is in the best long-term interest in terms of energy, in terms of jobs and the economy,” he added, while claiming he was still a ‘fan’ of the development.
This contrasts somewhat with a government press release from December 2014, when Mr Crabb said: “This is great news for Wales and has the potential to provide a massive boost to the Welsh economy – creating thousands of jobs, attracting millions of pounds worth of investment and helping to secure Wales’ energy future.
“Wales is already home to some of the most cutting edge companies in the world and the country is uniquely placed to pioneer tidal power.
“I am a strong supporter of this project and I have long been making the case to my Cabinet colleagues that Welsh innovation should be supporting the next generation of low-carbon technology.”
The concerns appear to stem from the subsidies requested by Tidal Lagoon Power, the company behind the scheme. The proposed subsidy is £168 per Megawatt hour, which compares unfavourably with nuclear energy at the proposed Hinkley C plant, which will be around £90 pMh.
However, a spokesperson for Tidal Lagoon Power said that they were confident that they would reach a ‘viable’ price through negotiation.
Tidal Lagoon Power, has come up against a number of obstacles since the project was green-lighted by the UK Government last year. It was hoped that Natural Resources Wales would have granted a licence for the project by July – something that has still not occurred. It was originally hoped that construction would begin in March 2016, a target that the firm has accepted will not be met.
In addition, at the end of last year, a Judge ruled that Cornwall Council had ‘acted unlawfully’ in granting permission for stone to be quarried at Dean Quarry on the Lizard and transported to Swansea bay by barge without seeking an Environmental Impact Assessment.
Question were also raised about whether assessments of the power generated were accurate, and suggested more tests were needed to ensure the turbines were sited for optimum efficiency. However, Tidal responded by saying that they were using ‘proven technology’.
“The project has been awarded a Development Consent Order and its design has been validated through independent technical adjudication on behalf of government and on behalf of the investors who are backing it,” a spokesperson for the company added.
Following a recent presentation at a Carmarthenshire County Council meeting, Tidal Energy Ltd spokesperson Ioan Jenkins admitted that there was no date to end negotiations with the UK Government, but claimed that the company was in daily contact with the Treasury, and hoped to get the ‘green light’ by the end of March and begin construction in the summer.
Mr Jenkins claimed that, while the cost will be almost twice that of nuclear power, it would come down for later developments.
“The concentration with the press is around Swansea Bay – we are concentrating on the fleet of lagoons thereafter,” he explained.
“This is in some ways too small, every one after will be cheaper than nuclear,” he added, quoting prices of between £80-85 pMh.
Mr Jenkins failed to explain how building a demonstration which was not especially cost-effective would convince the UK Government that future projects would be cheaper.
The project is strongly backed by businesses, elected representatives, and a large number of residents across south and west Wales. In the build up to the 2015 General Election, candidates from across the political spectrum suggested that south west Wales, and especially Pembrokeshire, would be in a prime position to regenerate local economies on the back of the ‘green energy boom’ which appeared imminent.
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