The negotiations will establish whether a Contract for Difference (CFD) for a potential tidal lagoon at Swansea Bay is affordable and value for money for consumers. Any decision to offer a CFD for the Swansea Bay Tidal Lagoon project would be subject to strict value for money considerations, the funds available within the Levy Control Framework (LCF) at the time of a decision, and to State aid approval.
Energy secretary Ed Davey said: “Britain has some of the best tidal resources in the world – tidal lagoons could provide 8 percent of our electricity needs, replacing foreign fossil fuels with clean, reliable home-grown electricity and creating fantastic economic opportunities.”