World's First Tidal Project 'Good Value for Money'

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Plans for the world's first tidal lagoon power project looks likely to be given the green light following the recommendations from a U.K. government-funded review into the £1 billion ($1.21 billion) endeavour.

The Swansea Bay Tidal Lagoon in Wales will be able to generate up to 500 gigawatt-hours (GWh) of electricity annually, enough to power 121,000 homes. It is seen as a "pathfinder" project that could lead to the construction of five, much larger lagoons that could be capable of supplying 8% of the U.K.'s total electricity over a period for about 120 years, according to developer Tidal Lagoon Power Limited (TLP).

An independent inquiry in the project was undertaken by former U.K. energy minister Charles Hendry on behalf of the government to see if tidal lagoons represented "good value for money" compared to existing forms of electricity generation.

"If you look at the cost spread out over the entire lifetime - 120 years for the project - it comes out at about £0.30 ($0.36) per household for the next 30 years. That's less than a pint of milk. That's where I think we can start a new industry and we can do it at an affordable cost to consumers."

Speaking about the technology, Hendry added: "We know it absolutely works. One of the great advantages is it is completely predictable for all time to come--we know exactly when the spring tides and leap tides are going to be every single day for the rest of time."

The Swansea Bay Tidal Lagoon received the green light from the government in June 2015. It will see the construction of a 9.5-kilometer (km), U-shaped seawall running from the entrance to the River Tawe near Swansea Dock out to sea, before curving back to re-join land next to Swansea University. It will feature 16 turbines. Backers include Alstom S.A. (ENX:ALO) (Paris, France), Costain Group (LSE:COST) (Maidenhead, U.K.), Atkins (Sheffield, England), Macquarie Group (ASX:MQG) (Sydney, Australia) and Dutch marine engineering firm Van Oord (Rotterdam). For additional information, see June 17, 2015, article--World's First Tidal Lagoon Green Lit for Wales.

The next step will see TLP seeking to secure a long-term guaranteed electricity price agreement - a Contract for Difference (CfD) - with the government.

A planning application has also been made by TLP for the much larger Cardiff Bay Lagoon project, also in Wales. The lagoon would stretch between Cardiff and Newport, using up to 90 turbines within a 22-km breakwater. It will be capable of generating between 1,800 megawatts (MW) and 2,800 MW--more than enough to power all of the homes in Wales. A decision is due in 2018. For additional information, see March 9, 2015, article - New Tidal Lagoon Power Project for Wales.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.