For the UK renewable energy sector, the most significant part of today’s Budget speech was the announcement by the Chancellor George Osborne that the Government is opening talks with Tidal Lagoon Power on providing financial support for the Swansea Bay Tidal Lagoon project.
RenewableUK’s Wave and Tidal Development Manager Dee Nunn said: “This is a significant step forward towards building the first tidal lagoon of its kind in the world. This pioneering project would ensure that Wales and the UK stay at the forefront of marine energy, providing clean electricity for 120 years and creating 2,000 jobs in the construction phase alone.
“By enabling this project to go ahead, the Government will also unlock the potential for other, larger tidal lagoons to be developed. Swansea Bay will generate the confidence needed to attract investors into those future schemes in the UK. So a negotiated strike price is needed for this first project as it’s the trailblazer which will generate momentum to kick-start the full commercialisation of this part of the marine energy sector.
“As the funding will come from the Levy Control Framework, which is a finite pot, the Government should ensure that other renewable technologies such as wind, wave and tidal stream are also allocated sufficient financial support, through an application process appropriate to their stage of development, to continue to develop to their full potential.”
Image: Tidal Lagoon Power