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| Swansea Bay's £1bn tidal lagoon given go-ahead | Swansea Bay's £1bn tidal lagoon given go-ahead |
| (35 minutes later) | |
| The building of a £1bn tidal lagoon in Swansea Bay has been given the go-ahead by the UK government. | |
| Tidal Lagoon Power (TLP) says it will now negotiate how much subsidy will be paid for the energy. | Tidal Lagoon Power (TLP) says it will now negotiate how much subsidy will be paid for the energy. |
| That is still a big hurdle for the developers, who want five other lagoons on the west UK coast to harness power, to make the project financially viable. | That is still a big hurdle for the developers, who want five other lagoons on the west UK coast to harness power, to make the project financially viable. |
| There are also concerns about the impact on the environment and migratory fish. | There are also concerns about the impact on the environment and migratory fish. |
| The backing by the Department of Energy and Climate Change (DECC) is seen as a significant step forward for the developers. | The backing by the Department of Energy and Climate Change (DECC) is seen as a significant step forward for the developers. |
| Energy Minister Lord Bourne, who is also Wales Office Minister, said: "We need more clean and home-grown sources of energy, which will help to reduce our reliance on foreign fossil fuels. | Energy Minister Lord Bourne, who is also Wales Office Minister, said: "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." | "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." |
| Swansea council leader Rob Stewart called the news hugely encouraging for the city, saying it would boost leisure and tourism. | |
| Friends of the Earth Cymru director Gareth Clubb also welcomed the news, adding: "Tidal power could further revolutionise Wales' energy mix - instead of relying on climate-wrecking fossil fuels, it could help us build a clean and safer energy future." | |
| However he called for the government to make the most of existing renewable resources such as offshore wind and solar power. | |
| The tidal lagoon on the eastern side of Swansea Bay, between the docks and the new university campus, would use the flow and ebb of the tide to generate energy, which would then be converted into electricity. | The tidal lagoon on the eastern side of Swansea Bay, between the docks and the new university campus, would use the flow and ebb of the tide to generate energy, which would then be converted into electricity. |
| But before the lagoon becomes a reality, there are three main challenges that need to be met: | But before the lagoon becomes a reality, there are three main challenges that need to be met: |
| The attraction for the UK Government is the potential for a new industry. | The attraction for the UK Government is the potential for a new industry. |
| Thousands of construction and manufacturing jobs could be created, especially if five much bigger lagoons are built in the Severn estuary and off the north Wales coast. | Thousands of construction and manufacturing jobs could be created, especially if five much bigger lagoons are built in the Severn estuary and off the north Wales coast. |
| There would also be a boost to the UK's standing as a generator of clean, green energy. | There would also be a boost to the UK's standing as a generator of clean, green energy. |
| Mark Shorrock, chief executive of TLP, said the project had the" potential to help transform our industrial economy and the UK's energy mix". | Mark Shorrock, chief executive of TLP, said the project had the" potential to help transform our industrial economy and the UK's energy mix". |
| He added: "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." | He added: "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." |
| Natural Resources Wales (NRW) will continue to assess the possible effects on the environment. A marine licence could be issued by the end of July. | Natural Resources Wales (NRW) will continue to assess the possible effects on the environment. A marine licence could be issued by the end of July. |
| If the decision is a positive one, work would start next March. | If the decision is a positive one, work would start next March. |
| ANALYSIS by Iolo ap Dafydd, BBC Wales environment correspondent | ANALYSIS by Iolo ap Dafydd, BBC Wales environment correspondent |
| Tidal energy has political muscle from both George Osborne and David Cameron behind it, while the developers claim the promised tourism and jobs from the project have strong support in the Swansea area. | Tidal energy has political muscle from both George Osborne and David Cameron behind it, while the developers claim the promised tourism and jobs from the project have strong support in the Swansea area. |
| But there are challenges too. Big ones. | But there are challenges too. Big ones. |
| There are environmental concerns about the impact on migratory fish. The Swansea lagoon would be between the Tawe and Neath estuaries. The potentially larger lagoon in eastern Cardiff could block the Rhymney estuary. | There are environmental concerns about the impact on migratory fish. The Swansea lagoon would be between the Tawe and Neath estuaries. The potentially larger lagoon in eastern Cardiff could block the Rhymney estuary. |
| TLP still needs a marine licence from NRW whatever is decided in Westminster. | TLP still needs a marine licence from NRW whatever is decided in Westminster. |
| The impact of dredging and clearing on the bay, as well as sediment pollution, are other considerations. And the project could yet face legal challenges or calls for a judicial review. | The impact of dredging and clearing on the bay, as well as sediment pollution, are other considerations. And the project could yet face legal challenges or calls for a judicial review. |
| Then there's the cost. A cool billion pounds for an energy output that would be a third of an average sized power station. | Then there's the cost. A cool billion pounds for an energy output that would be a third of an average sized power station. |
| The engineering is thought to be sound but the Swansea Bay lagoon would be small and the subsidy TLP wants is higher than many other forms of energy generation. So is it value for money? | The engineering is thought to be sound but the Swansea Bay lagoon would be small and the subsidy TLP wants is higher than many other forms of energy generation. So is it value for money? |
| The financial haggling on what subsidy the UK Government is willing to pay per megawatt hour of energy may well determine if this lagoon concept is acceptable or not. The company is asking for a £168 per MWhe. | The financial haggling on what subsidy the UK Government is willing to pay per megawatt hour of energy may well determine if this lagoon concept is acceptable or not. The company is asking for a £168 per MWhe. |
| Higher tariffs are offered to wave and other marine technologies, but unlike energy lagoons, they are far in the future whereas staff at TLP want to be able to start building next spring. | Higher tariffs are offered to wave and other marine technologies, but unlike energy lagoons, they are far in the future whereas staff at TLP want to be able to start building next spring. |
| HOW THE LAGOON WOULD WORK: | HOW THE LAGOON WOULD WORK: |
| Source: Tidal Lagoon Power Ltd | Source: Tidal Lagoon Power Ltd |