Cardiff Capital Region (CCR) has approved exploratory development studies for a tidal lagoon within the Severn estuary, marking a step forward in creating of one of the UK’s most significant renewable energy opportunities.
CCR will commit up to £6.4m over the next three years, utilising City Deal funds, to support the first substantive phase of the project. This will include an extensive exploratory study which will include environmental considerations, engineering design, modelling and commercial assessments.
Cllr Mary Ann Brocklesby, Chair of Cardiff Capital Region, said: “This represents a potentially game changing moment for renewable energy generation in the UK. The Severn Estuary has one of the highest tidal ranges in the world, with the potential to generate predictable, homegrown renewable energy that complements existing wind and solar power.
“In a time when energy security has become increasingly essential, the ability to access reliable and cost-effective renewable energy to power a significant number of homes, while placing Wales at the forefront of innovating in such an important sector, this is a generational opportunity. I am proud that CCR, along with our partners, are taking this exciting project forward.”
If progressed, initial estimates suggest the lagoon could provide around 600MW of predictable renewable electricity – enough for around half a million homes – and operate for more than 120 years.
It could also generate around £3.5bn in economic value, supporting thousands of jobs and creating significant opportunities for businesses across the supply chain. Meanwhile, wider potential benefits include long-term protection against sea-level rise along the South Wales coastline.
Adam Price MS, Cabinet Minister for Enterprise, Connectivity and Energy added: “Our vision is for Wales to become a world leader in marine renewables. With the second largest tidal range in the world, the Severn Estuary presents immense potential to deliver significant renewable energy generation and economic benefits for Wales.
“We will continue to work closely with partners to ensure we maximise the opportunities offered by this unique project as it progresses forward.”
The next phase will use environmental and engineering co-design to determine the scale and configuration for a project, ensuring environmental, marine and ecological evidence helps shape its future development while maintaining commercial viability.
Katie White OBE MP, Minister for Climate Transition said: “The Severn Estuary is one of the UK’s most significant tidal resources.
“This project will help us understand how tidal technology can contribute to the transition to clean power, tackle climate change and create good clean jobs in the future.”
Stephen Kinnock MP, Secretary of State for Wales continued: “Wales has a great track record of innovation and partnership, and Cardiff Capital Region is continuing to harness those strengths with projects that support economic growth, investment, and clean energy.
“I look forward to following the development with great interest.”
The project has emerged from joint work between CCR and the West of England Mayoral Combined Authority (WECA), following recommendations from the independent Severn Estuary Commission for a commercial demonstration project, with Aberthaw and its surrounding area identified as a potential location for the lagoon.
Cllr Lis Burnett, Leader of the Vale of Glamorgan Council added: “South Wales, and Aberthaw in particular, have long played an important role in the UK’s energy story, and this project presents an opportunity for the site to help lead the transition to a low-carbon future. The potential to generate clean, reliable renewable energy, alongside creating jobs, attracting investment and supporting local supply chains, makes this an exciting prospect for the Vale and the wider region. We look forward to working with partners as the exploratory work progresses.”
The Commission was established to explore tidal energy in the Severn Estuary, and to identify the most effective and environmentally responsible way of unlocking its potential.
Dr. Andrew Garrad CBE FREng commented: “The Severn Estuary has immense energy potential and the Commission concluded that there is a compelling case to use that potential. Equally, it must be done in the right way – with the unique and internationally important environment of the Estuary remaining at the heart of how the project is designed and developed.
“I am delighted to see Cardiff Capital Region taking forward the Commission’s recommendation for a commercial demonstration project. This investment is an important next step in building the evidence, working closely with environmental organisations, and demonstrating how tidal range can deliver large-scale, clean, economic energy while respecting the Severn’s exceptional natural environment.”
Helen Godwin, Mayor of the West of England Combined Authority (WECA), said: “The Severn Estuary is an extraordinary natural asset and now is the time to let our tides power new jobs and growth in both England and Wales. Building on the Commission’s recommendations, we have worked closely with Cardiff Capital Region to identify a key Welsh location as the right project to lead with, while ensuring the unique environment of our coast remains at the heart of plans.
“Today’s investment from our Welsh neighbours is exciting news for everyone and underlines again how the immense potential of tidal energy can unlock billions for our economy, create new jobs, skills opportunities, and supply chains across the West of England, Wales, and the UK. We will continue working with our partners to help realise this major national clean energy opportunity, here in the natural home of new green jobs.”
As a preferred location, Aberthaw and the demonstration project is intended to establish a precedent for what could follow. It will provide the evidence that a tidal range of this scale can be environmentally responsible, technically deliverable and commercially competitive, while unlocking a wider series of lagoons across the Severn.
