Tidal Lagoons and UK Energy Strategy Debate
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Antoinette Sandbach
Main Page: Antoinette Sandbach (Liberal Democrat - Eddisbury)Department Debates - View all Antoinette Sandbach's debates with the Department for Business, Energy and Industrial Strategy
Tidal Lagoons and UK Energy Strategy
Antoinette Sandbach Excerpts(7 years, 4 months ago)
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Antoinette Sandbach (Eddisbury) (Con)
I am very grateful to serve under your chairmanship, Mr Paisley.
My right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) has painted the golden uplands of tidal power, but while it is of strategic importance the cost is eye-watering. Although 50% of the benefit may go to Wales, it is the poorest consumers who will end up paying the subsidy on this project. I therefore urge the Minister to exercise caution in relation to the project. There are undoubted benefits, should the predictions come true about Swansea bay tidal lagoon power, but there is no guarantee that subsequent projects will be delivered, or that they will secure licensing consents from Natural Resources Wales. Past experience of energy projects at Milford Haven docks shows that there can be substantial delays in obtaining consents from NRW.
It is clear that the pricing for the tidal lagoon is far more expensive than Hinkley Point. It runs over a 90-year contract, whereas the Hinkley Point contract runs only for 35 years. The difference in the contract for difference is that decommissioning costs are included in the Hinkley Point contract. That makes tidal power—or this particular project—look very expensive. When one considers that the initial bid was £168 per megawatt-hour, one can see why a degree of caution needs to be exercised and why there has been movement away from the project. Would unique intellectual property be generated in the UK that would benefit the UK? Clearly, there would be skills advantages. I accept my right hon. Friend’s arguments about the skills benefits that could be gained and the engineering benefits that could come to the UK. However, those are not unique skills. They are very transferable. They can be taken anywhere and there would be no guarantee of their subsequently returning. We would be the first adopter, but there is no guarantee that we would retain the benefits, because of the lack of IP that would accrue to what amounted, in effect, to more than £2 billion-worth of subsidy from the British taxpayer.
I therefore urge the Minister to be cautious. I look forward to reading the Hendry review and seeing the evidence base, which I know has been looked into in great detail. The project has potential, but not at the strike price that is proposed.