Welsh first minister with fresh offer of ‘substantial investment’

Plans for a £1.3bn tidal power lagoon in Swansea could still be backed by ministers despite government indecision on whether to support it, according to the author of an independent review on the project. Charles Hendry, a Conservative politician and former energy minister, enthusiastically supported the scheme a year ago as a source of clean power and UK jobs.

Since then, the government has not indicated whether it wants to move ahead with the project, and ministers were recently reported to have gone cold on it. But Hendry told the Guardian he was still hopeful that Swansea would receive backing, because the plan would have been ruled out before now if it was not being given serious consideration.

“I remain optimistic that government will decide to move ahead, especially in light of [this week’s] announcement from the Welsh government,” he told the Guardian.

On Wednesday it was revealed that Carwyn Jones, first minister of Wales, had written to Prime Minister Theresa May offering “substantial” investment in the form of a loan or equity stake to help the lagoon move forward. “This investment could help to reduce the cost of capital for the project and reduce the subsidy requirement over the lifetime of any contract for difference,” he said. ‘Breakthrough’: Wales First Minister offers ‘substantial investment’ to help kick-start Swansea Bay Tidal Lagoon.

“This would be the world’s first tidal lagoon power plant, which would create thousands of high quality jobs, open the prospect of meeting a significant proportion of the UK’s energy needs from the tides and position Britain as a world leader in a new global industry,” Jones said this morning.

“And, yet, the UK government has been dragging its heels for over a year. This is leading to a growing sense of frustration among the Welsh business community and an increasing risk that the lack of a decision will turn into a decision not to proceed. Now is the time for the UK Government to stop stalling and get on with agreeing a strike price so we can make this transformative project a reality.”

The offer of “substantial investment” was welcomed by Shorrock, who said it was “the breakthrough our project has needed”.

“We thank the First Minister and his team for their leadership,” he said. “We look forward to working alongside the Welsh Government to now close the deal for Swansea Bay Tidal Lagoon with the UK Government.” A spokesman at the Department for Business, Energy and Industrial Strategy said: “We want to ensure that the UK has a diverse, secure and affordable energy mix but it must provide value for consumers. That’s why we are looking carefully at the potential to harness the UK’s natural resources to make our energy mix cleaner, more sustainable, and value for money for all UK taxpayers and consumers.” James Murray Business Green