Tidal Lagoon Power (TLP) is seeking a Contract for Difference (CfD) for the £850 million project to proceed and DECC is considering entering into a negotiation with the company.
This is part of the Government’s drive for transparency and engagement with stakeholders in developing new arrangements for applying for a “bespoke CfD”, DECC said.
The proposed six-mile horseshoe shaped sea wall project would generate 0.5TWh every year, enough to power almost 120,000 homes. It is also expected to create more than 1,800 construction jobs.
The sea wall will be able to capture renewable energy from incoming and outgoing tides.
Energy Secretary Ed Davey said: “Britain has some of the best tidal resources in the world – tidal lagoons could provide 8% of our electricity needs, replacing foreign fossil fuels with clean, reliable home-grown electricity. That’s why it’s important we consider what might provide the best value for money for bill payers.”