EY comments | Report backing Swansea Bay tidal lagoon a rare piece of positive news for the renewables sector, but questions remain

12 January 2017

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Ben Warren, Head of Environmental and Energy Finance at EY comments:

"Any support for the Swansea Bay tidal lagoon project appears, on the face of it, to be a rare piece of positive news for the UK's renewables sector.

“Whether the UK Government is adopting a strategy of fostering a more sustainable energy industry by supporting local jobs remains to be seen, both by the final decision but, more significantly, by the purchase price the Government will agree to pay for the power produced.

“Currently, truly affordable clean energy from offshore wind and solar is being left to fend for itself while the benefits of subsidy are enjoyed by new nuclear and even fossil fuels.

“Should Swansea Bay get the go ahead it remains to be seen whether tidal energy can deliver affordable electricity in the longer-term. For now we wait to see what price the Government is prepared to pay Swansea Bay for its power, and what risks it is prepared to take on board to ensure this ambitious project gets realised.”