Question marks have been growing about the Swansea tidal lagoon project since the summer. DECC announced that it was conducting a further value for money study. Conspicuously, even though there is considerable Chinese backing for the Swansea lagoon project there was no obvious mention of it during the state visit by China’s leader Xi Jinping or in a recent policy overview by Amber Rudd.

Last week Mark Sharrock called for a decision to progress with a decision within the next 6 weeks. This seems to have been prompted by Lib Dems leader Tim Farron’s comments at party meeting about the fears over the Swansea project. This is in turn was prompted by David Cameron when he spoke to the Liaison Committee. In one response he was rather luke warm about the Swansea project.

The problem of the very high strike price is the main issue, which has been brought down to Hinkley Point levels if you extend the funding support out to over 90 years. Another is the value of the project as a demonstration project not only for more in the UK but also other projects abroad.

There is an even greater problem which is that if this doesn’t go ahead even more pressure will fall on the Hinkley Point nuclear development which is shrouded in continuing rumours and uncertainty undermining UK’s already weak negotiating position. No Plan B.

Tidal Lagoon Power gets £10m boost from Gupta family A new deal sees Indian family investment firm secure 10 per cent stake in Tidal Lagoon Power and explore possible tidal energy development in Indian waters

http://www.businessgreen.com/bg/news/2444373/tidal-lagoon-power-gets-gbp10m-boost-from-gupta-family