Swansea Bay’s £1bn tidal scheme to provide ‘renewable energy on a nuclear scale’

Tidal Lagoon Swansea Bay chief executive Mark Shorrock said the decision to grant planning consent would help “secure the nation’s energy for generations to come”.

He added that the scheme would provide “low-cost, renewable energy on a nuclear scale”.

It was announced earlier this month that the China Harbour Engineering Company had been named as preferred bidder for a £300m marine works on the power plant.

Other contractors working on the scheme include Laing O’Rourke, which won one of the main civil engineering and construction packages for the Swansea Bay Tidal Lagoon, worth £200m, last month.

Welsh contractor Alun Griffiths was also appointed to a £25m deal to provide ancillary civil engineering for the £200m project’s public realm works.

The £1bn lagoon is expected to provide 500 GWh per year of low-carbon electricity to more than 150,000 homes.

Mr Thurrock said the project would create a “whole new industry”.

He said: “From Rugby to Pembroke Dock, from Sheffield to Swansea Bay, from Chepstow to Port Talbot, companies are working in the supply chain to prepare for the delivery of a new approach to energy infrastructure.”

In April, it was confirmed that former Balfour Beatty group chief executive Andrew McNaughton had joined the project as director of engineering and construction.

Tidal Lagoon Power has already announced it is looking at several new sites for a national fleet of lagoon schemes.

Pinsent Masons head of infrastructure planning and government affairs Robbie Owen said: “The decision to grant approval for the project will kick-start the UK’s tidal sector and is expected to create the foundations for a global export industry in tidal lagoon construction.

“Approval of the UK’s first tidal project could lead to development of up to five further, much bigger lagoons in the Severn, north Wales and the North-west of England.”

Energy and climate change and Welsh minister Lord Bourne said: “Low-carbon energy projects like the tidal lagoon in Swansea Bay could bring investment, support local jobs and help contribute to the Welsh economy and Swansea area.”

The decision by Mrs Rudd was announced today and means the development of the world’s first tidal lagoon moves one step closer.

However, the acceptance of planning permission marks the first stage in a three-step process that needs to be completed before work can begin.

The project will first have to secure a marine licence, which would only be granted after the environmental effects are assessed.

The level of subsidy for energy produced will then have to be agreed with the government.

A final decision is expected to be made by the end of the year, which, if accepted, could see work start on the lagoon by the start of 2016.