Winning hearts and minds: Swansea Bay Tidal’s deluge of support

The government greenlight this week for Tidal Lagoon Power’s Swansea project was met with a deluge of support from politicians and industry alike – no small feat for a project using relatively unknown technology at an eyewatering cost to the consumer.

The project has yet to receive a government support contract but it is thought the 320MW project will need to secure around £150/MWh-£168/MWh through the government’s contracts for difference regime – more per MW of energy produced than the oft-criticised Hinkley Point C new nuclear project which expects to receive £92.50/MWh.

But there are several key differences which set Swansea Tidal apart from some of the UK’s major energy projects, and have ensured support from both industry and the usually renewables-wary Conservative party.

Unlike nuclear generation, which has existed for decades but still requires a hefty government subsidy, the Swansea project is a world first which could bring forward a new world-leading homegrown industry and larger, cheaper tidal projects to play a significant role in decarbonising the energy sector.

Other low carbon options are frequently dogged with concerns: onshore wind has long come under attack from right-leaning politicians and those who oppose any change to the aesthetics of the countryside, but nimbyism to some extent affects offshore wind and nuclear generation too. The latter two options are also prohibitively expensive and – for different reasons – perceived as being unreliable providers of clean energy.

Tidal power offers something entirely different: predictable clean energy, “transformational technology” and the promise of a fresh start for a new local industry.

Assistant director of CBI Wales Ian Price told local newspaper, South Wales Evening Post, on Friday 12 June that in terms of building a local industry the developers have offered hope, but also tempered expectations given the lack of local experience and the need for a Chinese construction agreement.

“They have spent a lot of time speaking to the supply chain locally, and have managed expectations. The feedback I’ve had (about the Swansea lagoon) has been positive,” Price told the paper.

“They have done a great job in winning hearts and minds,” he added.

Here’s how industry reacted to the government’s consent this week for a new answer to the trilemma:

Department of energy and climate change minister Lord Nick Bourne, also a Wales Office minister:

“We need more clean and home-grown sources of energy, which will help to reduce our reliance on foreign fossil fuels. Low-carbon energy projects like the tidal lagoon in Swansea Bay could bring investment, support local jobs and help contribute to the Welsh economy and Swansea area.”

Tidal Lagoon Swansea Bay chief executive Mark Shorrock said:

“Through a single project we have the opportunity to create a whole new industry. And in a single step, that project can take us to low cost, renewable energy on a nuclear scale. We see it as a game-changer, a scalable blueprint, paving the way for a fleet of lagoons that can work in harmony with nature to help secure the nation’s electricity for generations to come.”

RenewableUK’s deputy chief executive Maf Smith said:

“This momentous news marks the start of an entirely new industry in Britain, which will lead the world in this innovative ultra-modern technology. As a maritime nation, we are perfectly placed to take advantage of the powerful tides surging around our coasts every day, which have great potential to generate increasingly significant quantities of renewable electricity.”

Good Energy chief executive Juliet Davenport:

“Investing in the project will enable us not only to further diversify our sources of renewable electricity which we will need to supply to our growing customer base, but also to enhance our forecasting capability through predictable generation.
“This kind of renewable generation project harnesses transformational technology and lies at the heart of everything Good Energy is about, and we’re delighted that it has received planning approval.”

Pinsent Masons head of inrfrastructure planning and government affairs Robbie Owen:

“Approval of the UK’s first tidal project could lead to development of up to five further, much bigger lagoons in the Severn, North Wales and the North-West of England. The Secretary of State’s decision to grant approval for the project will kick-start the UK’s tidal sector and is expected to create the foundations for a global export industry in tidal lagoon construction.”

For more on the costs of the Swansea Tidal Lagoon project read Utility Week’s analysis here.