Britain's green energy company Ecotricity welcomed the Government's review of tidal lagoon energy and announced it will take part in the review and compete to build the first tidal lagoon energy site in Britain.

The company, which will release details of its plans later this year, believes it can build tidal lagoon energy sites in Britain for almost half the price currently proposed for Swansea Bay.

Ecotricity has recently written to the Department of Energy and Climate Change urging the Government to take its time and look more closely at the cost of tidal energy – and the company believes the Government is right to announce a review to ensure value for money from the fledgling industry.

Ecotricity founder, Dale Vince, said: "The Government has been agonising for a while about what level of support to give to the first tidal project in Britain. They’re clearly interested in the technology, which is a good thing, but they’ve been put off by the price tag of £168/MWh proposed by Swansea Bay – that’s understandable.

"We welcome the review, because we’re confident that tidal power projects can be built around Britain at much closer to £90/MWh – that’s the same price the Government are paying to support nuclear energy, but without the risks or clean-up costs."

The Government’s independent review of tidal energy in Britain will commence in the spring, in collaboration with DECC and the HMT.

Dale continued: "We were concerned that the Government were being pushed into paying too high a price for tidal energy through the Swansea Bay scheme – that would be bad for renewable energy generally because it would reinforce the myth that green energy is expensive, and bad for tidal power specifically because it may never get off the ground.

"We’re hoping this review will lead to the Government supporting tidal energy in Britain and doing it in a way that will enable competition, and through that value for money – enabling tidal mills to achieve their true potential in Britain."