TIDAL ENERGY PROJECTS COULD FILL SOME OF THE NUCLEAR POWER GAP. OWEN HUGHES REPORTS

THE suspension of Wylfa Newydd has dealt a huge blow to the economic hopes of the region as well as to the energy strategy of the UK Government.

This has sparked desperate attempts to rescue the multibillion pound project but has also thrown into focus the potential schemes that could help fill the gap left in terms of jobs, investment and electricity generation.

Renewables is one area where there is room for growth and North Wales is already a leader in on-shore and off-shore wind, and solar power.

Now there are hopes the region can exploit the strong tidal currents around the coast with several projects being developed or in the early stages of planning.

While this is not going to fully plug the gap left if Wylfa Newydd collapses completely, the fast-developing technology could at least bring some relief.

But as with nuclear it is very much reliant on Government support – with the “strike price” (the guaranteed price the UK Government will pay for a unit of energy) crucial.

The tidal lagoon at Swansea Bay has already fallen victim to this – the plan collapsing into the sea after the Government decided the numbers didn’t add up. This doesn’t rule out future support though, especially if the Government’s nuclear policy continues to lurch from bad to worse.

There are three main tidal schemes in North Wales at various stages of design and development.

The most ambitious but also the furthest from turning into a reality is the proposal from North Wales Tidal Energy (NWTE) to create a giant lagoon from Llandudno eastwards towards Point of Ayr – providing vital flood defences alongside the generation of power for 1m homes.

Those behind the scheme say its construction – at a cost of around £7bn – could bring 20,000 jobs.

Anglesey is further ahead of the game when it comes to tidal, although the projects are at a smaller scale.

Minesto has so far invested £15m of private funds and £12m of EU cash into Holyhead Deep – a power-generating underwater kite project – and has commissioned and tested the first 0.5MW commercialscale device.

More investment is now needed to take this forward, with the Swedish company – which recently began talks for more public investment – saying it has the potential of generating 80MW of power and creating hundreds of jobs.

Meanwhile, regeneration group Menter Môn is developing a 240MW tidal power demonstration facility, Morlais, off the island’s west coast and has signed up eight international companies to test technology.

It now needs £30m to take the project to installation with confidence more than £20m will come from the EU – leaving around £9m left to find.

Director Gerallt Llywelyn said: “This is not Wylfa Newydd but there is still the potential that this could bring hundreds of jobs to Anglesey in the long term.

“For many years we have been exporting our youngest and brightest and Wylfa Newydd offered us a chance to stem that.

“The worry for Morlais with the Wylfa Newydd decision is not the direct impact, but it is the confidence factor, that is the concern.

“But we are still getting serious interest in the project from around Europe.

“Britain has the strongest tides in Europe – this is where this industry should be happening.

“We are now, alongside other tidal operators, lobbying the Government over funding.

“We will keep being persistent. Tidal is where wind power was 10 years ago where subsidies are needed but we have seen with wind that over time these technologies pay for themselves.”

The chairman of North Wales Tidal Energy (NWTE), Henry Dixon, said: “The suspension of Wylfa is not good for North Wales, because we have lost a major infrastructure project, and it’s not good for the UK, because we are losing a major energy provider.

“In the circumstances, we believe it is appropriate and urgent that the Government looks at alternatives such as the North Wales Tidal Lagoon.

“The North Wales coast is an excellent site for a tidal lagoon and modelling has indicated that its installed capacity of 2.5 gigawatts would generate over 4.5 terawatt-hours of electricity, reliably and predictably, year in year out for over 125 years.

“As nuclear power costs have risen, so renewable energy costs have fallen and become more competitive, and while the sun doesn’t always shine and the wind doesn’t always blow, the tide comes in and goes out twice every day.

“Wind and sun are great and do a good job and are part of the energy solution, but we need something that will provide a baseload of energy and we believe tidal energy can be an important part of the UK’s energy mix.

“The design, construction and operation of the lagoon has the potential to provide thousands of direct jobs in the region as well as stimulating other employment in marine industries, amenity and tourism.

“Our feasibility studies show that a North Wales Tidal Lagoon is cost-effective and offers value for money for the Government and investors.”

He added: “The building of the sea wall for a tidal lagoon offers the potential for the Government to significantly reduce its future flood defence budgets.

“The sea wall, designed to last for over 125 years, will increasingly prove its value over the decades to come and is unlikely ever to be decommissioned – unlike nuclear plants whose decommissioning has been shown to be a long-term, technically challenging and expensive process.

“The arguments for a tidal lagoon in North Wales have always been attractive.

“With the Wylfa nuclear plant being suspended, the case for further investigation becomes compelling.”

Magnus Matsson, communications manager, Minesto AB, said: “Minesto currently employs 16 people full-time at the UK head offices in Holyhead.

“So far, the company has invested more than £15m of private equity and almost £12m of ERDF funds in Anglesey.

“The next phase of the Holyhead Deep project will trigger further investments in Anglesey of more than £14m.

“Circa 70% of Minesto’s current supply chain is from Welsh-based companies.

“The Welsh tidal stream industry has great potential of supplying predictable, affordable renewable baseload power to Welsh households and businesses while creating sustainable jobs.

“Minesto’s long-term plans for the Holyhead Deep project is a step-wise expansion towards a commercial tidal energy array of approx. 80MW installed capacity.

“That full-scale expansion – which could generate clean electricity equivalent to approx. 60,000 Welsh households – would enable investments of approximately £170m with hundreds of direct and indirect jobs created.”