Carwyn Jones attempts to rescue Swansea tidal project

Wales’ first minister has launched a last ditch bid to rescue plans for a pioneering wave power plant in Swansea Bay.

Amidst media reports that the Westminster government is gearing up to announce it will not support Tidal Lagoon Power’s (TLP) £1.3 billion project, Carwyn Jones has proposed a “way forward”.

The first minister has outlined a package, based on a joint offer of support from the Welsh and UK governments, in a letter to business secretary Greg Clark that was copied to prime minister Theresa May.

The Welsh government would inject an equity stake and/or loan of £200 million under the proposed offer.

In return, Jones proposes the UK government would commit to a contract for difference for TLP on the same terms as that offered to Hinckley Point C – a strike price of £92.50/MWH over a 35 year period.

In the letter, which followed a phone call between Clark and Jones on Monday evening (4 June), Jones writes: “Such an offer would, I believe, strike an appropriate balance between supporting a pathfinder, low carbon energy generation project, in line with the findings of your own Hendry Review, while providing value for money.”

Plaid Cymru, Wales’ main opposition party, called in a debate in the Welsh Assembly earlier today (6 June), for the establishment of a public owned energy company to take the Swansea Bay project forward.

The Swansea Bay tidal lagoon was recommended for approval in a government commissioned report by former energy minister Charles Hendry last year.

Keith Clarke, chairman, Tidal Lagoon Power, said: “Once again we thank the first minister for his particularly timely initiative.

“We look forward to seeing the UK government’s positive response to a proposed joint deal on these terms. The proposal for a joint deal with this structure is extremely constructive, we are eager to engage on it with all parties and it is a proposal we’d be delighted to take to our board.”