The UK Government has rejected Swansea’s proposed tidal lagoon that was set to cost £1.3 billion due to the high costs associated with the renewable project that taxpayers would have had to subsidise for decades to come.
The business secretary, Greg Clark, told parliament: “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.”
Since a government commissioned review recommended rapid approval last year, there have been increasing concerns over the costs of renewable energies as green subsidies are being cut from the budget in order to protect consumers from rising energy bills.
According to Clark, government support for the lagoon would cost the average consumer £700 more by 2050, compared to other forms for power sources.
Furthermore, there was only a small chance of cost reductions from future lagoons with limited benefits to the local economy as the project would only require 30 people to maintain.