The Welsh Government has offered to invest £200 million in Swansea Bay tidal lagoon scheme following reports the UK Government is considering pulling out of the project.

First Minister Carwyn Jones has pledged to commit the substantial investment towards the £1.3 billion renewable energy scheme and called on the UK Government to commit towards a "contract for difference on the same terms as that offered to Hinckley Point C".

The Hendry Review, published in January last year, concluded that "the evidence is clear that tidal lagoons can play a cost effective role in the UK’s energy mix and there is considerable value in a small pathfinder project".


First Minister Carwyn Jones said: "This would be the world’s first tidal lagoon power plant, which would create thousands of high quality jobs, supply a significant proportion of the UK’s energy needs and position Britain as a world leader in a new global industry.

"And, yet, the UK government has been dragging its heels for over a year. This is leading to a growing sense of frustration among the Welsh business community and an increasing risk that the lack of a decision will turn into a decision not to proceed.

"Now is the time for the UK government to stop stalling and get on with agreeing a strike price so we can make this transformative project a reality."

Mark Shorrock, Chief Executive Officer at Tidal Lagoon (Swansea Bay) Plc, said: "This is the breakthrough our project has needed. We thank the First Minister and his team for their leadership.

"We look forward to working alongside the Welsh Government to now close the deal for Swansea Bay Tidal Lagoon with the UK Government."

(LM)