Lagoon delay is not a setback

DON’T panic, don’t panic (to coin a phrase). Consider the following.

If the Swansea Bay Tidal Lagoon Project (SBTLP) were started in 2018 it would not be completed until 2022. It might take another three years (until 2025) before becoming fully operational (and commissioned). It is alleged that the UK treasury has “no new money” for new large projects until 2025.

The developers “strike price” for the electricity from the SBTLP is said to be £89.50 - this would seem to be not unreasonable, given that it is based on the generation of electricity from the SBTLP, using current technology and engineering. However, over the next few decades, new, more efficient, electricity generating, electricity storage and transmission systems will evolve. These new systems could be used in the form of upgrades to the SBTLP (and subsequent tidal lagoons). These upgrades would significantly reduce the cost of generating electricity. Hence, in a decade or two, the “strike price” could be reduced.

A reliable supply of electricity is a major factor of national security and a healthy economy. It could be argued that, perhaps, by about 2040, tidal lagoons, if proved to be viable economic assets, could be purchased from the investors/developers. Electricity generated from tidal power is a “no brainer” - that is, it could be an invariant, sustainable, and potentially economically viable supply of green energy; perhaps for a hundred years or more.

Therefore, a relatively short delay in the start of the SBTLP should not be considered as too much of a setback. It will give further time for review and revision - which could be of advantage to both developers, investors and potential customers.

Brian Hayes Bassaleg, Newport