The conclusion of the UK Government’s analysis is that the project and proposed programme of lagoons do not meet the requirements for value for money.
Secretary of State for Wales Alun Cairns said:
I realise the disappointment this decision may cause, but ultimately this project did not meet the threshold for taxpayer value.
The reality is the consumer and industry would have been paying disproportionately high prices for electricity when cheaper alternatives are available. I was an early and consistent supporter of the scheme – and took it to Number 10 – but after months of hard work by officials – the conclusion when taking a responsible approach to taxpayers money – is it just did not stack up.
It’s important to stress that the issue here is specifically with the tidal lagoon application, not the concept of marine energy itself. The Office of the Secretary of State for Wales and wider Government is committed to renewable energy and we will remain open to different sources of that. However, the priority always has to be that renewable energy represents good value for the Welsh consumer.