Good Energy has taken an equity stake in the Swansea Bay tidal lagoon project and reserved the option to purchase power from the Wales facility.

The company has invested £500,400 in project developer Tidal Lagoon (Swansea Bay) and secured an option for 10% of the scheme’s projected 495GWh annual output.

The project, which will be located in Severn Estuary, has been accepted for consideration by the Planning Inspectorate and if approved tidal power from the site is expected to be connected to the National Grid by 2018.

Good Energy founder and chief executive Juliet Davenport said the project will allow the company to expand its business by adding tidal energy to its existing portfolio of renewable energy generation.

"This forms part of our long-term strategy of investing in UK renewable generation assets, securing renewable electricity for our rapidly growing customer base and playing a part in helping the UK secure its energy future," Davenport said.

Tidal Lagoon (Swansea Bay) secretary and director Patrick Carter said, "This investment is significant on two levels: as a contribution to our ongoing development fundraising and as a powerful endorsement of our project from a growing UK renewable electricity supplier."