Swansea Council to help ensure tidal lagoon stays on track

Swansea Council says it will exert all the pressure it can to make sure the multi-million-pound Swansea Bay Tidal Lagoon project stays on track.

The project is now understood to be in doubt because of the lack of agreement so far between the company behind the proposal, Tidal Lagoon Power, and the UK Government on the ‘contract for difference’ whereby consumers subsidise energy schemes through their bills.

Although Tidal Lagoon Power has recently announced about 20 job losses, the company says the construction of the Swansea Bay Tidal Lagoon remains one of its priorities.

Cllr Rob Stewart, Swansea Council Leader, says the project is vital to boost economic prosperity across the Swansea Bay City Region.

“As Leader of the Council and a member of the Swansea Bay City Region Board, I’ve written to the Prime Minister to request a positive and speedy decision on the strike price for the Swansea Bay Tidal Lagoon,” he said.

“The UK Government has given the project planning consent and has shown its support on a number of occasions, but the delay on agreeing the contract for difference must be resolved soon if this project is to go ahead in Swansea Bay.

“I can’t stress how important this project is for the economic wellbeing of Swansea and the Swansea Bay City Region as a whole. It will generate thousands of engineering and construction jobs for local people, create a long-term, sustainable industry that would supply components for future tidal lagoons and energy projects across the world, and boost a tourism industry that’s already worth about £400 million a year to our economy by attracting many thousands more visitors.

“This huge potential economic impact is why the council and the Swansea Bay City Region board, led by Sir Terry Matthews, will leave no stone unturned to ensure unresolved issues are positively addressed as soon as possible.”

The Swansea Tidal Lagoon isn’t just important for Swansea and South West Wales, Cllr Stewart says.

“The construction of the world’s first tidal lagoon in Swansea Bay would kick-start the delivery of five similar schemes elsewhere in the country that would generate enough clean energy to supply London, Manchester, Birmingham and a number of other key cities with reliable, renewable energy for the next 125 years.

“This technology would reduce the UK’s reliance on foreign energy, help meet our renewable energy obligations and represent a major export opportunity for the UK.”

A Cardiff University Business School study estimates the lagoon’s three-year construction phase could be worth over £500 million to the Welsh economy.

About 1,850 construction jobs could be created by the project. When fully operational, the project would generate 500GWH of electricity every year – that’s enough to power more than 155,000 homes.