Planning permission has been granted for the construction of the world’s first tidal lagoon in Wales.
The decision follows a recommendation made by the Planning Inspectorate and an examination process.
Tidal Lagoon Power said it will now negotiate how much subsidy it can receive for the 500GWh of low carbon electricity it is expected to generate every year.
In March this year, the previous government announced it was starting the first phase of negotiations over a potential Contract for Difference to ensure the project is affordable and provides value for consumers.
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.”
The project is expected to cost around £1 billion.