The UK government will carry out a feasibility study to examine the practicality of tidal lagoon energy in the country.
The review, which will commence this spring, will assess whether tidal lagoons could play a cost effective role as part of the UK energy mix.
It will also consider potential scale of opportunity in the UK and internationally, including supply chain opportunities, and a range of possible structures for financing tidal lagoons.
Tidal lagoons have the potential to provide the country with clean and secure energy in a cost effective way.
This review will take place in consultation with the Department of Energy and Climate Change (DECC) and HM Treasury for financial aspects.
The government will also determine whether a competitive framework could be put in place for the delivery of tidal lagoon projects.
UK Energy Minister Lord Bourne said: "Tidal Lagoons on this scale are an exciting, but as yet an untested technology. I want to better understand whether tidal lagoons can be cost effective, and what their impact on bills will be – both today and in the longer term.
"This review will help give us that clarity so we can determine what role tidal lagoons could have as part of our plans to provide secure, clean and affordable energy for families and businesses across the country."
Tidal Lagoon Power, developers of the proposed £1bn Swansea Bay Tidal Lagoon, and other industry stakeholders are expected to take part in the review while discussions about the 320MW scheme continue.
Tidal Lagoon Power CEO Mark Shorrock said: "Energy in the UK has become a completely regulated market where all operators and technology forms – from fossil fuel, to nuclear, to renewable – depend on direct or indirect subsidy. All non-hydro low carbon energies – solar, biomass, wind, and especially nuclear – have been conformed to favor foreign providers of the technology. We lose jobs, we lose time. Importantly, we also have lost baseload power.
"The tidal lagoon fleet breaks this unfavorable tradition. We will capitalize on a natural advantage. With speed we will deliver baseload power at a nuclear scale and a lower cost. Today’s review will ensure that we are able to consolidate this understanding in the market."
Last year, DECC gave planning approval for the construction of the tidal lagoon project in Swansea Bay, Wales.
The project will generate clean energy which will be enough to power 155,000 homes, while reducing carbon emissions by over 236,000 tons annually.
Image: Tidal lagoons have the potential to provide the country with clean and secure energy in a cost effective way. Photo: courtesy of lkpro / FreeDigitalPhotos.net.