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Swansea Bay tidal lagoon - the world's first - has been given planning approval by the UK Government.

The decision by Energy Secretary Amber Rudd to follow the recommendations of the Planning Inspectorate and grant consent removes a key barrier to the development of the groundbreaking energy project.

It now awaits the negotiation of a green subsidy with the UK Government and the granting of a marine licence from the Welsh Government.

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Independent reports said the project would need a strike price of up to £168 per megawatt hour over a period of up to 35 years.

Announcing the decision Energy and Climate Change and Wales Office minister Lord Bourne said: "We need more clean and home-grown sources of energy, which will help to reduce our reliance on foreign fossil fuels.

"Low carbon energy projects like the tidal lagoon in Swansea Bay could bring investment, support local jobs and help contribute to the Welsh economy and Swansea area."

Mark Shorrock, chief executive of Tidal Lagoon Swansea Bay, said: "What a day for Wales and the building of a Welsh powerhouse!

"Wales led the way providing the fuel for the industrial revolution. We are now entering the era of the climate change revolution – de-carbonising our world in time to avoid two degrees of global warming – Wales can now lead this next revolution.

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"With the Swansea Bay Tidal Lagoon becoming a reality, locking in 120 year life, zero carbon energy infrastructure, we have the potential to help transform our industrial economy and the UK’s energy mix.

Swansea Bay tidal lagoon film

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"From Rugby to Pembroke Dock, from Sheffield to Swansea Bay, from Chepstow to Port Talbot, companies are working in the supply chain to prepare for the delivery of a new approach to energy infrastructure. Through a single project we have the opportunity to create a whole new industry."

The Swansea Bay tidal lagoon is planned as the first in a series of up to six lagoons planned for various locations around the coasts of Wales and England. These include ones at Cardiff, Newport and Colwyn Bay.

In addition, further lagoons could be built in Asia following an agreement with Chinese investors on construction.

The lagoon will cost up to £1bn and will generate around 500 gigawatt hours per year of electricity.

'This marks the start of a new industry in Britain'

RenewableUK’s deputy chief executive, Maf Smith, said: “This momentous news marks the start of an entirely new industry in Britain, which will lead the world in this innovative ultra-modern technology.

"As a maritime nation, we are perfectly placed to take advantage of the powerful tides surging around our coasts every day, which have great potential to generate increasingly significant quantities of renewable electricity.

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"Today’s announcement is a major step towards harnessing this untapped energy source on an unprecedented scale, providing clean electricity to the nation for generations to come.

"It will also provide a massive economic boost with new jobs, economic development and tourism opportunities for the region at the heart of the project.”

'The lagoon will be a major boost for Swansea'

Swansea Council leader Cllr Rob Stewart said the construction of the lagoon would be a major boost to the local economy.

He added: "Not only will it open up new jobs and generate more trade for existing local businesses, but the inclusion of facilities for cycling, walking, angling, running, rowing and sailing will generate recreational benefits for local people and further boost a tourism industry that’s already worth over £360m a year to the local area. It’ll also lead to a new industry right on our doorstep that could potentially create a new export market in Swansea.

“Harnessing marine energy in this imaginative way could soon make Swansea a global example of innovative and sustainable best practice. This could well spark similar schemes across the world in future as other cities and countries follow in Swansea’s footsteps.”

'This could revolutionise Wales' energy mix'

Gareth Clubb, director of Friends of the Earth Cymru, said: “Tidal power could further revolutionise Wales’ energy mix – instead of relying on climate-wrecking fossil fuels, it could help us build a clean and safer energy future.

“There are still a few environmental hurdles to clear such as the source of the rock to be used, but provided these concerns can be managed and mitigated, tidal lagoons could make a significant contribution to a 100% renewably-powered UK.

“Investment in the huge potential of tidal power is an exciting step forward, but the Government must also make the most of the proven renewable sources we already have, such as offshore wind and solar, where costs are falling rapidly.”

A Welsh Government spokesperson said: “We welcome this decision. Wales is well-placed to exploit the potential of marine energy and the Swansea Bay Tidal Lagoon project could create thousands of jobs during the construction and hundreds of permanent ones.

"We will continue to work with the developers and other partners to ensure the benefits of this project are maximised across the Welsh supply chain.”

David Clubb, director of RenewableUK Cymru, said: “This is a huge step forward for an iconic development that will be the envy of coastal areas across the world. I would like to pay tribute to the staff at Tidal Lagoon Power who have worked incredibly hard to get the project to this stage, and wish them the very best with the final financial and regulatory hurdles.”