The Welsh government said that it will offer £200m for the construction of Tidal Lagoon Swansea Bay, a proposed 240MW tidal lagoon project in Swansea Bay, offshore Wales.

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Image: The Swansea Bay tidal lagoon project in the UK is estimated to cost £1.3bn. Photo: courtesy of Good Energy.

The funding offer comes at a time when the UK government is mulling on the prospects of investing in the £1.3bn project that is touted to become the world’s first tidal lagoon power plant upon its commissioning.

To be developed in south west Wales by a special purpose vehicle (SPV) company named Tidal Lagoon Swansea Bay, the project is scheduled to break ground this year and become operational ready in four years time.

Despite the backing of a UK government commissioned review, the proposed Tidal Lagoon Swansea Bay has been a non-starter with UK minister casting doubts over the project costs, reported Reuters.

Wales First Minister Carwyn Jones made the offer to provide a loan or to take an equity stake in a letter written to UK Business Minister Greg Clark.

Project developer Tidal Lagoon Swansea Bay hopes that the UK government would form a positive opinion on the project following the proposed joint funding deal made by the Welsh government.

Tidal Lagoon chairman Keith Clarke was quoted by the publication as saying: “The proposal for a joint deal with this structure is extremely constructive. We are eager to engage on it with all parties and it is a proposal we’d be delighted to take to our Board.”

Tidal Lagoon Swansea Bay will feature a ‘U’ shaped 9.5km breakwater wall, a man-made lagoon and 16 hydro turbines.

Water passes through the hydro turbines during tidal drops which cause difference in water levels inside and outside the lagoon, thereby helping in generation of electricity. Also, when the tide rises, water fills the lagoon to enable production of electricity.