UK Government is seeking opinions from the stakeholders regarding the approach it would take if it decides to enter into Contract for Difference (CFD) negotiations for the Swansea Bay Tidal Lagoon project in South Wales.
This represents Government’s new transparency approach for the engagement with stakeholders, the Government’s press release reads.
Energy and Climate Change Secretary Ed Davey said: “The Russia-Ukraine crisis showed us the importance of having our own supplies of energy, whilst scientists have made it clear that we need to curb our emissions and move to a low-carbon economy as quickly as possible.”
Stephen Crabb , Secretary of State for Wales, commented: “This scheme has the potential to create thousands of jobs and inject millions of pounds into the Welsh economy through regeneration, tourism and supply chain opportunities. It will also send a clear signal that Wales is at the forefront of tidal technology and be a major boost for other potential tidal projects in Wales.”
Contracts for Difference are part of the Government’s reforms to the energy market. They provide developers with more price certainty for the electricity generated by the plant, stimulating investment in renewable energy projects.
The announcement came soon after the Swansea Bay Tidal Lagoon project got the official backing by the Swansea Bay City Region.
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Image: Tidal Lagoon Swansea Bay