‘Stop dithering and build the Swansea tidal lagoon’ – union
Britain’s biggest union, Unite, has called on the UK Government to “stop dithering” and give the go-ahead to the £1.3bn Swansea Bay tidal lagoon project.
The union said the project would create 2,000 jobs and unleash an economic boost worth at least £500m to the Welsh economy.
The union, whose members work in construction and manufacturing across the Welsh and wider UK economy, said it has grown increasingly frustrated over the UK Government’s failure to give the go-ahead to the project.
The project, from Tidal Lagoon Power, would be the first renewable scheme of its kind in the UK. It was given planning consent two years ago and has the backing of the Welsh Government in addition to crossparty support in Westminster.
An independent review led by former UK energy minister Charles Hendry concluded in January that tidal lagoons can play a “cost-effective part in the UK’s energy mix” and that moving ahead with the Swansea Bay project “as soon as reasonably practicable” is a “no regrets policy”.
And if what is effectively a pilot project in generating green energy from tides is approved, it could lead to a national fleet of six lagoons, estimated to contribute £27bn to UK prosperity – creating or supporting 36,000 jobs, with the potential to increase exports by £3.7bn per year.
Proposed future lagoon locations include the coasts of Cardiff and Newport, as well as Colwyn Bay.
The UK Government is expected to decide whether to back the project with a strike price (effectively a subsidy) shortly. It’s this which has been the sticking point ever since the project received planning consent.
The broad outlines of the negotiations on a subsidy are by now wellknown. It would mean a guaranteed price for the electricity produced averaging out at £96.50 per megawatt hour over 90 years – although Hendry said the subsidy period should be 60 years. The project has a lifespan of at least 120 years, with its turbines generating enough power for 120,000 homes.
Sources say the price could come down to £89.90 – which would put it below the £92.50 agreed for Hinkley Point C nuclear power station.
It sounds a lot, but according to Hendry it works out at around 30p per household per year – less than the price of a pint of a milk.
What may be the stumbling block is the initial strike price, which reports suggest could be more than £123 per megawatt hour. Tidal Lagoon Power needs to reassure its investors that they will get a good return within a reasonable timescale. The Government will have an eye on the headlines if the initial strike price looks too high.
Unite believes the Swansea Bay lagoon project could open the door to similar larger projects around England and Wales and pave the way to the UK becoming a world leader in tidal power electricity generation as part of a wider industrial strategy.
Its general secretary Len McCluskey said: “Theresa May and her Government needs to stop the dithering and end the continued uncertainty over the Swansea Bay tidal lagoon.
“This is a landmark project which would unleash an economic boost worth millions into the Welsh economy and create thousands of muchneeded decent jobs. Not only would it be great news for Wales, but it would also see the birth of an industry that would have transformative impact across the whole of the UK.
“Wales wants and deserves this opportunity to build a new industry based upon its unique tidal resource. The tidal lagoon makes both economic and environmental sense. All that is missing is a clear and unequivocal statement from the UK Government that the project can proceed.
“It’s a no-brainer. If Theresa May is indeed in ‘listening mode’, then she needs to heed the chorus of support from industry, unions and politicians from all parties by giving a resounding ‘yes’ to Swansea.”
A decision on the strike price will be made by the UK Government’s Department for Business, Energy & Industrial Strategy (BEIS).
A BEIS spokesperson said: “The Government is considering the recommendations in the Hendry Review and the issues which arise from a broader programme.
“We will require time to assess the merits of such a programme and determine what is in the best interest of the UK energy consumer and taxpayer in the long term, and will publish its response to the Hendry Review in due course.”