The government has rejected plans for a £1.3bn tidal lagoon in Swansea Bay, dashing industry hopes of Britain leading development of a new source of renewable energy and sparking widespread criticism. Ministers said the project, which would have been subsidised through household energy bills for decades, was too expensive compared with alternatives such as offshore windfarms and nuclear power. The business secretary, Greg Clark, told parliament he had “left no stone unturned” in considering whether to support the scheme. “The inescapable conclusion of an extensive analysis is, however novel and appealing the proposal that has been made is … the cost that would be incurred by consumers and taxpayers would be so much higher than alternative sources of low-carbon power that it would be irresponsible to enter into a contract with the provider,” he said. Clark said backing a series of lagoons would cost the average consumer £700 more by 2050, compared with a mix of offshore wind and nuclear power. The capital cost for the lagoon, per unit of electricity generated, would be more than three times as much as the Hinkley Point C power station, he said. The minister said the government’s analysis had concluded there was little potential for cost reductions from future lagoons and limited local economic benefits. However, the long-awaited decision was condemned by the renewable energy industry, green groups and MPs. Mark Shorrock, the chief executive of the company behind the project, Tidal Lagoon Power, accused Clark of being misinformed. “This is a vote of no interest in Wales, no confidence in British manufacturing and no care for the planet,” he said. Labour said it was “remarkably ironic” that the announcement came on the same day as a vote on Heathrow airport expansion. Rebecca Long-Bailey, the shadow business secretary, said: “Once again the Tories have defied all logic and failed to make the right decision for our economy, the people of Wales and the future of our planet.” Carolyn Harris, the Labour MP for Swansea East, where the lagoon would have been based, told Clark: “You will never understand the frustration and anger felt in our city today.” Plaid Cymru, the Welsh nationalist party, formally tabled a vote of no confidence in the secretary of state for Wales, Alun Cairns, at the Welsh assembly. The Plaid assembly member Simon Thomas said: “The UK government has time and time again failed to invest in Wales. “The failed electrification of Wales’ railways, and now the rejection of the tidal lagoon prove that the secretary of state for Wales has no credibility and is not fit to represent Wales in public office. He must resign at once.” The trade body RenewableUK said it was disappointed by the rejection, while the Green party co-leader Caroline Lucas said it was “a double blow” because jobs and green energy production would be lost. Clark defended the government’s stance, saying it believed in renewable energy. He disclosed that he had more than 10 meetings this year alone with the Welsh government, which had offered a £200m equity stake or loan to make the project viable. Clark’s statement comes nearly 18 months after an independent government review strongly backed the scheme. Charles Hendry, the report’s author and a former energy minister, said the Swansea project would add the cost of only a pint of milk to annual energy bills and provide predictable, low-carbon electricity. Hendry told the Guardian that the government had failed to recognise the longer lifetime of lagoons compared to alternatives. “The offshore wind turbines will have to have been replaced three or four times during the lifetime of a lagoon; a nuclear plant would only last half as long,” he said. The project’s dismissal comes shortly after ministers said they were considering taking a multibillion-pound stake in a new nuclear power station at Wylfa in Wales. That reversed a decades-long policy of avoiding direct state ownership and will have made it possible to aim for a subsidy price much lower than the lagoon’s. The Swansea scheme’s planned generating capacity is about a 10th of Wylfa but backers said it could be followed by five large-scale lagoons, providing a home-grown source of renewable energy, jobs and an export opportunity. Gloucester-based Tidal Lagoon Power had hoped to agree a guaranteed power price with the government – known as a contract for difference – for the “pathfinder” lagoon at Swansea. Guardian business email sign-up The Swansea project envisaged a U-shaped breakwater built across the bay and the tide passing through 16 turbines, generating power for 155,000 homes. First proposed in 2011, the lagoon won backing from the then chancellor George Osborne, who used his 2015 budget to announce the government was commencing negotiations with Tidal Lagoon Power for the plan. Clark insisted that if future tidal lagoons could demonstrate value for money, the government would consider them. However, industry observers think Monday’s rejection is likely to kill off prospects for any future lagoons in the UK. Other technologies that harness the power of the tides are still seen as having potential.<doc-sep>Supporters of the project would argue that looking at things this way does not take into account the long life of the lagoons, which could still be generating electricity after 120 years. The Hinkley plant has a life expectancy of 60 years.<doc-sep>However, the goalposts have moved. There was huge criticism of the UK government over the price for energy struck for the new nuclear plant across the water at Hinkley Point. With a pledge not to commit bill payers to such costs again, even getting the cost of the lagoon to a similar figure was unlikely to be good enough.<doc-sep>Chairman Keith Clarke said: "There has been no negotiation and it is not unreasonable to expect that government will now be willing to meet and discuss its position on Swansea Bay Tidal Lagoon in some detail. We have already requested that meeting."<doc-sep>
The government has been criticised by environmental campaigners after it threw out plans for a £1.3bn tidal lagoon in Swansea. The "world first" tidal lagoon project, featuring a U-shaped sea wall with turbines, would have been able generate clean energy from the tides capable of powering about 155,000 homes. But Business Secretary Greg Clark has poured cold water on the scheme, telling the House of Commons the project "however novel and appealing" did not demonstrate value for money. Mr Clark said that by 2050 the lagoon would cost up to £20bn more to produce the same amount of electricity as offshore wind and nuclear sources. Image: Business Secretary Greg Clark has been criticised by environmental campaigners over the decision The company behind the plans, Tidal Lagoon Power, wanted subsidies similar to those for Hinckley Point C in Somerset in order to build the scheme. "The inescapable conclusion of an extensive analysis is that, however novel and appealing the proposal, even with these factors taken into account the cost that would be incurred by consumers and taxpayers would be so much higher than alternative sources of low-carbon power that it would be irresponsible to enter into a contract with the provider," Mr Clark said. Today is a day of Government-induced environmental disaster. First they plough ahead with #Heathrow expansion. And now they put a nail in the coffin of the tidal lagoon. The Green veneer has well and truly been peeled away from the Tories. https://t.co/o0rOQ35vcr — Caroline Lucas (@CarolineLucas) June 25, 2018 The move was immediately criticised by Welsh politicians who described the news as "devastating" and "desperately depressing" for the region. Plaid Cymru tabled a vote of no confidence in the Secretary of State for Wales Alun Cairns at the National Assembly for Wales following the announcement. Image: Anglers feared the project would have harmed marine and migrating fish populations Friends of the Earth Cymru warned "bold action" was needed to tackle climate change, which meant investing in innovative new technologies such as tidal lagoons. Greenpeace UK campaigner Emma Gibson said: "A government that styles itself as an international leader in tackling climate change has just rejected the opportunity to become the international leader in developing tidal lagoons that produce clean energy day and night, and whose prices would have fallen after this first demonstration project." Our Energy spokesperson, @LSRPlaid reacts to Westminster blocking the Swansea Bay Tidal Lagoon. pic.twitter.com/fCBUpdVnjM — Plaid Cymru (@Plaid_Cymru) June 25, 2018 Instead it was preparing to "throw billions of taxpayers' hard-earned cash" at nuclear power which relied on handouts, saw spiralling prices and delayed delivery, she said. The refusal to back the lagoon was welcomed by anglers who had feared the large infrastructure project would cause serious harm to marine and migrating fish populations, and other aquatic wildlife.