Lagoon’s economics ‘clear cut’, says Cable
LIBERAL Democrat leader Vince Cable believes the economics of the Swansea Bay Tidal Lagoon are “clear cut” and that Theresa May’s Government should fire the starting gun.
Speaking to the Western Mail during a visit to south Wales, Mr Cable said the £1.3bn energy project had multiple benefits. “I have just been through the technical detail,” he said. “It is a very good project. It is very difficult to see how any rationale long-term planning of energy would not include it.”
The former minister said the lagoon would have had the go-ahead if the Coalition Government in which he served was still in power.
The current Westminster administration has consistently said it had to be satisfied that any subsidy agreed with developer Tidal Lagoon Power provided value for money for consumers.
Mr Cable said: “The price of electricity for a smaller, initial lagoon project (Swansea) would be roughly comparable to Hinkley Point C nuclear power station. Once you develop a series of lagoons the cost falls to something roughly comparable to gas, or offshore wind. The costs are affordable and will fall over time. The whole issue is a willingness to look at the long term. We don’t know what is going to happen to the price of oil and gas.”
The economist, who has worked in the private and public sectors, said it was notable that a financial services company like Prudential had committed to the Swansea Bay Tidal Lagoon.
Mr Cable said the project, which the developer has said would provide the equivalent electricity used by 155,000 households, was “extremely important” for Wales and for the rest of the UK due to industries it could spawn.
Asked how much the lagoon appeared on his radar when Secretary of State for Business, Innovation, and Skills in the Tory–Liberal Democrat coalition between 2010 and 2015, he said it fell more into his energy colleague’s brief.
“My colleague Ed Davey wanted to encourage the project,” he said.
A UK Government spokeswoman said it was still considering the findings of an independent report into tidal lagoon energy, which made a strong case for the Swansea project.
“We want to ensure that the UK has a diverse, secure and affordable energy mix – but it must provide value for consumers,” she said.
“That’s why we are looking carefully at the potential to harness the UK’s natural resources to make our energy mix cleaner, more sustainable, and value for money for all UK taxpayers and consumers.
“We will be engaging with the Welsh Government to fully understand their offer but the fact remains that any Government subsidy needs to provide value for money for the taxpayer and consumers over many years.”