Potential economic effects of Swansea Tidal Lagoon
This Debate Pack has been compiled ahead of the debate on the potential economic effects of Swansea Tidal Lagoon to be held on Tuesday 8 March at 2:30pm in Westminster Hall. The Member in charge of the debate is Simon Hart MP. Debate Packs are produced quickly after the announcement of parliamentary business. They are intended to provide a summary or overview of the issue being debated and identify relevant briefings and useful documents, including press and parliamentary material. More detailed briefing can be prepared for Members on request to the Library.
On 9 June 2015 planning consent was given for what the Government described as ‘the world’s first Tidal Lagoon’ for generating energy in Swansea Bay. The application, made by Tidal Lagoon Power (TLP), was to construct a man-made, energy-generating tidal Lagoon, with a 240MW (megawatt) nominal rated capacity averaging 14 hours of generation every day.
Construction of the Tidal Lagoon would be a major infrastructure project with overall estimated costs for the project of £1 billion. Funding has been and is being sought from private investment. The project has requested a strike price of £168/MWH for 35 years.
Negotiations for this price are currently ongoing with the Department of Energy and Climate Change and on 10 February 2016, the Government announced an independent review into the feasibility of Tidal Lagoon energy in the UK. The review is expected to report in autumn 2016.
Benefits expected from the Lagoon include the creation of over 2,800 construction jobs as well as up to 40 permanent roles in tourism related industries.