Edwina Hart, the Welsh Economy Minister, has said that the subsidy for the £1 billion Swansea Bay Tidal Lagoon is desperately needed. Without this subsidy, Hart clarified, it is difficult to attract investors to the project.
The news comes in response to the UK Government advising that it is too early for the strike price to be agreed as checks are still being carried out.
Hart said: “There is an elephant in the room. The tidal lagoon project, if they can’t get certainty on strike price, it’s going to be very difficult for investment. We haven’t got clarity on the UK Government’s energy policies, which makes it very difficult for the sector and we can’t afford to have that.
“I know the strike price is absolutely mouth-watering compared to nuclear at Hinkley but we have to do something about it. We desperately need that strike price.
“I’ve engaged with the UK government on this and had regular discussions with Lord Bourne, and will be continuing to press this issue on behalf of the tidal lagoon.”
The ‘mouth-watering’ figure requested by Tidal Lagoon Power is higher than subsidies provided for wind, solar and nuclear, which have all curried more favour with Parliament in the past.
There are a number of other tidal projects in the UK and beyond, including the £200 million Wyre Eco-THEP project in Lancashire.