According to Charles Hendry, the former energy minister who backed the £1.3bn project in his government-commissioned review of January 2017, the decision could have been made 18 months ago. “But they have taken 18 months when they could have almost said ‘no’ to it on day one,” but, he added: “They're keen to look at other tidal technologies and that at least is positive.
First Minister Carwyn Jones claimed that the UK government would have supported a project like the Swansea tidal energy lagoon if it had been proposed in Northern Ireland, branding the decision a “political calculation” and that he didn't "trust the figures the UK government has come out with" to justify its position.
The scheme off Swansea Bay had £200m backing from the Welsh Government.
The government said it would not pay Tidal Lagoon Power (TLP) the fee it wanted for energy, although the lagoon’s backers said a revised offer made it cheaper.
TLP claimed no talks have taken place for two years at a UK level while its supporters have vowed to do what they can to make it a reality.
Chairman Keith Clarke said: "There has been no negotiation and it is not unreasonable to expect that government will now be willing to meet and discuss its position on Swansea Bay Tidal Lagoon in some detail. We have already requested that meeting."
TLP claimed the Swansea project would provide power to 155,000 properties in Wales and would be cheaper than nuclear power.
The developers had previously asked for a 90-year contract with the UK government with an average strike price – a guaranteed price for the electricity generated - of £89.90 per megawatt hour.
The new nuclear power station at Hinkley Point C in Somerset was given a strike price of £92.50/MWh for 35 years.
The review by former energy minister Mr Hendry said Swansea should be used as a test of the technology, before allowing other developers to bid to construct further schemes as part of a competitive tendering process.
Ian Price, CBI Wales Director, said that it is disappointing that the financially viable model for the Swansea Bay Tidal Lagoon project has not been possible but that, “at the end of the day any project has to be affordable for consumers.
“All major infrastructure projects require large amounts of time, energy and money, only for many to then fail to get the green light. There must be a smarter way of approaching such projects that does not discourage innovative entrepreneurial new firms from entering the marketplace.
“The newly established National Infrastructure Commission for Wales should lead a cross-agency review into all stages of this project and identify ways both governments can speed up the process for future energy infrastructure projects and remove barriers to entry for other firms.”
Tidal Lagoon Power (TLP) has requested a meeting with UK government ministers.
