Posted on: 12/06/2018
Welsh First Minister Carwyn Jones has offered £200 million of funding for the Swansea Bay tidal project if the UK Government gives the go-ahead for the scheme.
Jones has written to UK Energy Secretary Greg Clark telling him the project needs an “appropriate” contract for difference, as proposed by the Hendry Review last year.
“In broad terms, my proposal would be for the offer to comprise a Welsh Government commitment to an equity and/or loan investment of £200m, with the UK Government committing to a contract for difference on the same terms as that offered to Hinkley Point C (£92.50/MWh in 2012 prices over a 35-year term from the date of commissioning),” wrote Jones.
“Such an offer would, I believe, strike an appropriate balance between supporting a pathfinder, low carbon energy generation project, in line with the findings of your own Hendry Review, while providing value for money.
“It would need a maximum, full and final offer from both governments.”
Developer welcomes intervention
Keith Clarke, Chairman of developer Tidal Lagoon (Swansea Bay) Plc, said: “The proposal for a joint deal with this structure is extremely constructive, we are eager to engage on it with all parties and it is a proposal we’d be delighted to take to our board.”
A spokesman for the Department for Business, Energy & Industrial Strategy said that the UK Government is considering the findings of the Hendry review and an announcement will be made “in due course”.