1.3bn tidal lagoon project thrown out

Image copyright TLP
Image caption The particular Hendry review said the lagoon would make a “strong contribution” in order to energy supplies

Plans to build the particular world’s first tidal power lagoon have been thrown out by the UK authorities.

Business and Power Secretary Greg Clark said the particular £ 1 . 3bn project had not been value for money, despite claims by programmers Tidal Lagoon Power (TLP) a modified offer made it cheaper.

The decision has been slammed by nearby politicians across the celebrations, including the Conservatives.

The particular scheme off Swansea Bay got £ 200m backing from the Welsh Authorities .

But the UNITED KINGDOM government said it would not pay out TLP the fee it desires for energy.

TLP claimed no talks have taken location for more than a year and stated followers of the project have vowed to try and do what they can to make it a reality .

Mr Clark told the Commons : “Securing our energy requirements into the future has to be done significantly and, when much cheaper alternatives can be found, no individual project, and no specific technology, can proceed at any cost. ”

Government evaluation estimated that the lagoon would price the average British household consumer an extra £ 700 between 2031 plus 2050.

But TLP chief executive Mark Shorrock said the particular figures were wrong, adding that will offshore wind projects had obtained £ 8bn in subsidies as well as the “path finder” tidal lagoon task needed £ 25m a year “in order to kick start a good industry”.

“It’s an extremely, very sad day for Wales, for Swansea, ” he informed BBC Radio Wales’ Good Evening Wales programme.

First Minister Carwyn Jones tweeted that it was a “crushing whack to Wales”.

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Media caption Carolyn Harris: “You will never understand the frustration plus anger in my city”

Welsh Admin Alun Cairns said: “I understand the disappointment this decision could cause, but ultimately this project failed to meet the threshold for taxpayer worth. ”

There have been numerous calls among Labour MPs designed for Mr Cairns to go but this individual told the BBC Wales Today programme he was happy with his record.

Financial Secretary Mark Drakeford, speaking within an interview on Good Evening Wales, said: “Wales has not had an efficient voice at the cabinet table. inch

Plaid Cymru’s power spokesperson, Liz Saville Roberts MEGA-PIXEL, said the UK government’s “decision shows the need for Wales to gain greater control of its own future”.

Welsh Liberal Democrat leader Jane Dodds called the decision a “disgrace”, because did Gower Labour MP Tonia Antoniazzi.

The statement brings an end to 18 months associated with waiting since an independent review, commissioned from the ministers, recommended building the lagoon .

TLP chief Keith Clarke said: “In gentle of today’s statement and getting heard next to nothing from govt for two years, the board is going to be meeting in two days’ time for you to consider its next steps. inch

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Media caption Greg Clark said the particular lagoon did not meet “value intended for money” requirements

The review simply by former energy minister Charles Hendry said Swansea should be used as being a test of the technology, before permitting other developers to bid to create further schemes as part of a aggressive tendering process.

The united kingdom government has been accused of pulling its heels since then, during which time they will repeatedly stated the scheme should prove “value for money”.

Image copyright TLP

TLP claims the particular Swansea project would provide power to 155, 000 properties in Wales and it is cheaper than nuclear power.

The developers had formerly asked for a 90-year contract using the UK government with an average hit price – a guaranteed cost for the electricity generated – associated with £ 89. 90 per megawatt hour.

The brand new nuclear power station at Hinkley Point C in Somerset was handed a strike price of £ ninety two. 50/MWh for 35 years.

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Media caption Watch Tidal Lagoon Power’s video clip of how the turbines would work

Analysis simply by Brian Meechan, BBC Wales company correspondent

It was a project that seemed at a single point to have widespread and almost common support in Wales.

It required the UK government in order to agree a significant strike price — a subsidy paid by customers through energy bills – although the precise amount varied depending on the length of time that will price was set for plus whether other taxpayer funding has been invested in the project.

The independent report simply by Charles Hendry was very encouraging of the tidal lagoon. However , additionally, it said that doing a full, value for money, evaluation was beyond its scope.

In recent months, some in the business local community have been privately raising concerns in regards to the cost of the project and its effect on energy bills.

While Tidal Lagoon Power and the Welsh Federal government now say it is the same cost as nuclear power, the UK authorities insist it is double.

However , the goalposts have relocated. There was huge criticism of the UNITED KINGDOM government over the price for power struck for the new nuclear vegetable across the water at Hinkley Stage. With a pledge not to commit costs payers to such costs once again, even getting the cost of the lagoon to a similar figure was not likely to be good enough.

It appears, ultimately, that UK ministers do not possess confidence that the lagoon developers can easily deliver the project at the cost they now think is good for consumers to pay. Especially since other options such as wind energy are available in at a much lower cost.

Tidal lagoon: The timeline

2003 : Plans very first emerge for a £ 30m tidal power project in Swansea These types of from a green energy charity

2006 : Tidal Electric Ltd prepares a scoping report for a lagoon to take the particular project on but it is wear hold

this year : Tidal Lagoon Power (TLP) unveils its ambition to develop the breakwater and power generation

2013 : TLP starts developing its plans

2014 : Programs submitted to Planning Inspectorate using a cost of £ 850m

2015 : Proposals obtain backing of UK government, susceptible to subsidy agreement – hope it may be operational by 2018

2016 : Report alerts of impact on fish. Charles Hendry is appointed to lead indie review into £ 1 . 3bn lagoon’s viability

2017 : Hendry review shells the lagoon as a “no regrets” option but the UK government remains to decide

2018 : Delays, mostly believed to be more than arguments over value for money. Welsh Govt also offers substantial investment, as will Wales Pension Partnership

Ian Cost, director of business group CBI Wales, said: “We appreciate the hard work and energy made by politicians through both governments who have worked unceasingly to try and make this project a reality. All in all, any project has to be affordable meant for consumers. ”

Jesse Clubb, a director at RenewableUK Cymru, the trade body for all those renewable energy, said: “This means that the location will not benefit from many thousands of tasks from the project and the associated provide chain. ”