The Government has refused to back a “world first” tidal lagoon project to generate clean energy from the tides on cost grounds.
The company behind the scheme, Tidal Lagoon Power, wanted subsidies similar to those for new nuclear power to build the £1.3 billion scheme, consisting of a U-shaped sea wall with turbines in Swansea Bay.
The lagoon had been backed as a “pathfinder” project to develop the tidal technology by an independent review for the Government.
But Business Secretary Greg Clark told the House of Commons the project “however novel and appealing” did not demonstrate value for money for consumers and the public purse.
Energy minister Greg Clark, said to Parliament today: “We believe in renewable energy and we believe in the benefits of innovation.
“The conclusion of this analysis – which has been shared with the Welsh Government – is that the project and proposed programme of lagoons do not meet the requirements for value for money, and so it would not be appropriate to lead the company to believe that public funds can be justified.
“The proposal for the Swansea tidal lagoon would cost £1.3 billion to build. If successful to its maximum ambition, it would provide around 0.15% of the electricity we use each year.”