Both the companies are bidding together for the £300m contract covering 16 bidirectional turbines.
The companies have also committed to use a majority of British-made components with all generators to be manufactured in Warwickshire.
GE and Andritz Hydro will also operate a dockside turbine assembly plant in Wales. The turbines will be based on Andritz Hydro technology.
The project will be built in the Severn Estuary, which has the second highest tidal range in the world.
The plant will supply renewable power for more than 155,000 homes and reduce over 236,000 tons of CO2 emissions per year.
Tidal Lagoon Power CEO Mark Shorrock said: "Tidal lagoons will employ British industry to harness a British natural resource and return profits to British institutions.
"We are now well placed to meet the targets we set ourselves for 50% of the capital expenditure for the Swansea Bay Tidal Lagoon to stay in Wales, rising to 65% for the UK as a whole.
Tidal Lagoon Power has also selected GE and Andritz Hydro as preferred bidders for the £25m contract to manage the operations and maintenance of Swansea Bay Tidal Lagoon for a minimum of five years.
Tidal Lagoon Power plans to follow the Swansea Bay Tidal Lagoon with five full -scale tidal lagoons in UK waters.
The six projects are expected to provide 8% of the UK’s electricity for the next 120 years.
Image: The £1bn Swansea Bay Tidal Lagoon hydropower project will be built in the Severn Estuary. Photo: Courtesy of Andritz Hydro.
