Swansea Bay tidal lagoon power price questioned

Backers of the tidal lagoon hope the Swansea project will be the first of many

The value for money of a proposed £1bn Swansea Bay tidal lagoon energy project has been questioned in Parliament.

UKIP MP Douglas Carswell asked whether it was right for the UK government to promise to pay three times the market rate for power generated by the scheme.

Energy Minister Andrea Leadsom said the price had yet to be agreed, but ministers were keen to promote "new ideas and new technologies".

She said securing a diverse set of energy sources was "vital".

The UK government gave the go-ahead to the project earlier in June.

However, the policy of guaranteeing minimum prices to encourage the development of renewable energy sources has been controversial.

'Critical'

Speaking during energy questions in the Commons on Thursday, Mr Carswell asked whether guaranteeing a price for energy was a good use of public money or good for competitiveness.

"The tidal lagoon project in Swansea certainly will generate renewable energy," he said.

"However, it will mean the government guaranteeing a payment for that energy three times the current market price."

In response, Ms Leadsom said: "A diverse set of energy sources is vital, not just for our energy security, but also for our decarbonisation and for keeping the costs down to consumers."

Aberavon Labour MP Stephen Kinnock queried whether there was a risk of the project being held up in Brussels.

"It's critical that the foot is kept on the accelerator on that project - otherwise the timings will be seriously out and that seriously jeopardises the future of the project," he said.

Ms Leadsom said the UK government was "very focused on removing all of the potential obstacles to this project" and was discussing issues relating to state aid with the European Commission.