BEIS Parliamentary select committee announces investigation of obstacles and delays behind a long-awaited final decision on the Swansea Bay Tidal Lagoon project
Business Green ‘A Parliamentary probe into the delays behind UK government making a long-awaited final decision on the Swansea Bay Tidal Lagoon project has been announced by MPs and the first evidence session can be seen on video.
The BEIS Committee and the Welsh Affairs Committee revealed plans last week to jointly scrutinise the government’s decision making process for the renewable energy project, over which exploratory discussions first began as far back as 2013. The first hearing is now scheduled to take place tomorrow.
An independent review of the Swansea Bay Tidal Lagoon published in January last year by former Energy Minister Charles Hendry had urged the government to support the project, arguing it would help trigger a wave of tidal lagoon projects that would help create a new world-leading industry and drive down tidal energy costs over time.
However, ministers are still yet to make a decision, with media reports suggesting they are reluctant to back a project that would require an initial price support contract that is significantly higher and longer than the contracts offered to other forms of clean energy, such as offshore wind farms.
Concerns have been raised in the meantime that the ongoing delay over a decision is putting the project at risk, despite the Welsh government, for its part, recently offered to provide substantial investment.
As such, the inquiry announced last week will see MPs hold the first of two planned evidence sessions tomorrow, with author of last year’s independent review, Charles Hendry, set to appear alongside representatives from the RSPB, Tidal Lagoon Power, Aurora Energy Research, Natural Resources Wales, and The Crown Estate.
The Committees will then question stakeholders and ministers from the Welsh and UK governments at a later date. Chair of the BEIS Committee, Labour MP Rachel Reeves, said it was important to get clarity on the next steps for the project, with the government’s failure to decide on whether or not to provide taxpayer support having “left investors in limbo”.
“The Swansea Tidal Lagoon project has been a tale of indecision with the government having dithered over this for five years and still to reply to the Hendry Review, published over a year ago,” she said. “The Committee on Climate Change says the UK will fall short in reaching the targets of its Carbon Budgets. Tough choices will need to be made. If the government wants to go ahead with this project, then it needs to say so urgently. If not, then it must get on with it and let the public and investors know of its intentions.”
David T.C. Davies, chair of the Welsh Affairs Committee, said while the project appeared to offer plenty of potential benefits, there were still “serious questions to be asked” about whether it offered value for money for taxpayers, and what its possible environmental impacts might be.
“We are looking forward to hearing from Tidal Lagoon Power and a range of interested parties – both those in favour and those sceptical of the Lagoon – to better understand the true costs and benefits of project,” said the Conservative MP.’
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