An opportunity to place Wales and the UK at the forefront of the tidal energy technology sector is set to receive a blow this week according to UK Press sources.

The Financial Times has reported UK ministers will throw out the £1.3bn Swansea tidal lagoon project this week and are discussing ways to reduce the political impact by offering support for other energy projects across the region. The sticking point is that the UK government is not willing to pay Tidal Lagoon Power (TLP) the fee it wants for energy despite a revised offer that has been made. The TLP has claimed no talks have taken place for more than a year. TLP had previously asked for a 90-year contract with the UK government with an average strike price of £89.90 per megawatt hour. In comparison the new nuclear power station at Hinkley Point C in Somerset was given a strike price of £92.50/MWh for 35 years. TLP have said they have repeatedly offered to meet BEIS (business, energy and industrial strategy)ministers and have not been given the opportunity to do so.

Reacting First Minister Carwyn Jones commented:

“If these rumours prove to be true, the UK government will be delivering a massive blow to Swansea and Wales more widely – yet another kick in the teeth after their decision to abandon electrification of the train line west of Cardiff,” “The Welsh Government remains committed to the Swansea Bay Tidal Lagoon and we stand ready to provide significant financial backing to help make it a reality.” “Rather than seize the opportunity presented by the project to position Britain as a world leader in a new global industry, the UK government continues to block the development of renewable energy schemes in Wales,”

Support for the project has been signed by two thirds of assembly members urging Teresa May to assist Wales in becoming a renewable energy leader.

The letter posted signed last year by 43 of the 60 AMs said:

“Our collective interest as politicians is in a brighter future for Wales and though we may not always agree on how to get there, we are wholly united on this matter. “We offer you our clear support for a positive decision at the earliest opportunity for the Swansea Bay Tidal Lagoon to proceed, and to be the pathfinder for future success for Wales and the UK as a global leader in tidal lagoon technology and renewable energy.”

Swansea council leader Rob Stewart commented: