Swansea Council has invited private backers to undertake the delivery of the proposed 320MW Swansea Bay tidal lagoon after efforts to secure a Contract for Difference price support from the UK government came to naught.
The council-led Swansea Bay City Region is to publish a Prior Invitation Notice to give private sector companies and investors the chance to deliver the £1.3bn project.
Swansea Bay developer Tidal Lagoon Power failed earlier this year to get backing from the UK government for a 35-year CfD worth £92.50 per megawatt-hour on value for money grounds.
“We’re now testing the market to see which companies are interested in helping to deliver the lagoon – this could range from large financial institutions who want to invest in the project to major construction companies who want to build it,” said Leader of Swansea Council Rob Stewart.
“Once we know the type and level of interest from the private sector, we can consider the best route to take to ensure we deliver this project and pave the way for a new industry,” he added.
The “fundamental requirement” of the lagoon is to be “stand alone requiring no form of subsidy”.
The Welsh government, however, has indicated it is prepared to make a significant investment alongside an appropriate institutional partner or investor.
The partner or partners will be required to conclude the detailed planning, design and licencing, obtain all appropriate permissions and secure funding for the realisation of the lagoon.
The project will involve a strategic review of the overall project, design work, development of business and project plans, securing of necessary investment, construction and operation.