The UK Government is launching a review to establish whether tidal lagoons “present value for money.”
Announcing the review, the Government said that while tidal lagoons have the potential to provide the country with clean and secure energy and progress had been made to understand the technology, more work needs to be done to determine whether they present value for money, saying:
“In recognition of this, we have commissioned a review of the technology to improve our 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.
Energy Minister Lord Bourne commented:
“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 review will take place in consultation with the relevant Government departments – in particular the Department for Energy and Climate Change and Her Majesty's T reasury for financial aspects.
The review will start in the spring with the aim of establishing an evidence base to ensure all decisions made regarding tidal lagoon energy are in the best interest of the UK.
The Government is expecting that Tidal Lagoon Power, the proposed developers of Swansea Bay Tidal Lagoon, and other industry stakeholders will take part in the review while discussions about Swansea Bay Tidal Lagoon continue.
Further information about the review will be set out shortly.
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