On Wednesday 10 February the Government announced that it will launch an independent review into the feasibility and practicality of tidal lagoon energy in the UK this spring. The review will take place in consultation with the Department for Energy and Climate Change ("DECC") and the Treasury.

The review comes on the back of ongoing delays and uncertainty surrounding the Swansea Bay Tidal Lagoon, following the Prime Minster expressing concerns that the cost of the technology may be too high. The government has confirmed that it expects that the proposed developers of Swansea Bay Tidal Lagoon to take part in the review along with other industry stakeholders. Therefore, whilst discussions about the Swansea Bay Tidal Lagoon are ongoing, the review will undoubtedly cause further delay.

The review will consider:

  • An assessment of whether, and in what circumstances, tidal lagoons could play a cost effective role as part of the UK energy mix;
  • The potential scale of opportunity in the UK and internationally, including supply chain opportunities;
  • A range of possible structures for financing tidal lagoons;
  • Different sizes of projects as the first of a kind;
  • Whether a competitive framework could be put in place for the delivery of tidal lagoon projects.

The government will set out further information about the review shortly.

The full government announcement can be read here