Tidal Lagoon Power has claimed the lifetime cost to consumers of its proposed Swansea Bay tidal lagoon would be the same as the Hinkley Point C nuclear plant in Somerset.
In its report published today, The New Power Cost League Table, the Gloucester developer said the 320MW Swansea Bay tidal lagoon would have a lifetime cost of £25.78 per megawatt-hour, based on a Contract for Difference for 90 years and operational lifetime of 120 years.
The report’s author Mike Edge could not confirm the value of the ‘strike price’ but said the partially-indexed 90-year CfD would be less than the previously suggested £96.50/MWh.
TLP said the £25.78/MWh lifetime cost of Swansea Bay would be the same as Hinkley Point C’s £25.78/MWh, based on a 35-year CfD and operational life of 60 years.
Edge added the costs are based on a load factor of 20% for Swansea Bay tidal lagoon and 91% for Hinkley Point C.
TLP said its planned 1.8-2.8GW Cardiff project would have a lifetime cost to consumers of £7.80/MWh
“A mix of solutions is necessary to achieve the sustainable and secure supply we need,” said Edge.
“The longer lifespan, proven technology and comparatively low construction risk of tidal lagoons can be leveraged to generate, at scale, the cheapest electricity on the system.”
The report also found the cost to consumers of onshore wind is £20.07/MWh based on a 15-year CfD with a strike price of £82.50.
Offshore wind came out at £19.49/MWh based on a 15-year CfD with a strike price of £85.
Solar was seen at £18.68/MWh based on a 15-year CfD with a strike price of £79.23.
Image: Tidal lagoon at Swansea Bay (Tidal Lagoon Power)
Lagoon cost ‘same as Hinkley’
Swansea developer claims project will produce power at £25.78/MWh
By EBS