Renewable energy supplier Good Energy will invest in a pioneering tidal energy project that is expected to provide clean power to more than 155,000 homes in the Swansea area.
Plans for the Tidal Lagoon in Swansea Bay – the world’s first tidal lagoon power plant – were accepted for public examination by the relevant authorities in March.
The £756m project will see a six-mile long U-shaped wall constructed in the Port of Swansea, enclosing over seven sq miles of tidal area. Submerged hydro turbines would be used to create clean electricity for over 120 years.
It is hoped that the development will begin in 2015, with the plant becoming operational in 2018.
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Good Energy has now secured an option to purchase 10% of the projected annual 495GWh output from the plant, and has taken an equity stake of £500,400 in operators Tidal Lagoon (Swansea Bay) PLC.
“This project will enable us to diversify our business by adding tidal energy to our existing portfolio of renewable energy generation,” said Good Energy founder and chief executive Juliet Davenport.
Patrick Carter, director of the special purpose vehicle company developing the project, added, “This investment is significant on two levels: as a contribution to our ongoing development fundraising and as a powerful endorsement of our project from a growing UK renewable electricity supplier.”
A recent report, published by Pӧyry Management Consulting and commissioned by Tidal Lagoon’s developers, concluded that further lagoon projects could provide energy significantly cheaper than that sourced from offshore wind farms.
A separate report from the Cardiff Business School also suggested that the lagoon could inject as much as £300m into the Welsh economy.