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A portfolio of three tidal lagoons would deliver low carbon electricity at “a significantly cheaper price” than offshore wind by 2021, according to an economic study by Poyry.
The research, commissioned by Tidal Lagoon Power, which plans to build a 240MW tidal lagoon in Swansea Bay, stated that the contract-for-difference (CfD) strike price for a tidal lagoon project could be as low as £92/MWh by 2021.
The first “proof-of-concept” project, which is the Swansea Bay development, requires a £168/MWh strike price.
This is estimated to fall to £130/MWh for a second lagoon, and then to £92/MWh for a third lagoon project.
The fall in costs is said to come from a move to bigger sites with a higher tidal range.
Offshore wind projects are currently offered a CfD strike price of £155/MWh and this would fall to £135/MWh in 2018/19. Other marine energy technologies are being offered a strike price of £305/MWh.
Mark Shorrock, chief executive of Tidal Lagoon Power, said: “The more water we impound, the more power we produce, the less support we require.
“It really is that simple.”
Gareth Davies, director at Poyry management consulting, said: “Tidal lagoons have the potential to provide renewable electricity which is both affordable in the short term and secure for the long term.”
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