Tidal Lagoon Power (TLP) has accepted an offer from the UK’s National Grid Electricity Transmission to secure grid connection for the 3.24GW tidal lagoon power project between Cardiff and Newport in the UK.
Once operational, the planned Cardiff Tidal Lagoon will be the biggest renewable energy project in the UK.
TLP has been conducting preliminary environmental and engineering studies for the project for a period of three years and expects to receive consent to develop the plant by 2019.
The company is also expecting to receive final permission from the government of UK to develop a separate tidal power project in Swansea Bay, which is expected to feature 320MW capacity.
TLP chief executive Mark Shorrock said: "Our offer to the UK Government is to contract Swansea Bay Tidal Lagoon for a lower subsidy per megawatt hour than Hinkley Point C.
“While we await the government’s response to this offer and to the independent Hendry Review of tidal lagoons, we have continued our development work on the subsequent programme.
“We have secured the grid connection for a tidal power station equal in installed capacity to Hinkley Point C.”
According to TLP, the Cardiff Tidal Lagoon project is expected to create supply contracts worth more than £6bn for UK companies.
The project is anticipated to produce more than 5,500GWh of energy annually, which is sufficient to power every home in Wales for the next 120 years.
More than 3,000 construction jobs and over 8,000 manufacturing jobs are also expected to be created in Wales and the UK.
An investment of around £8bn is estimated to be required for the Cardiff Tidal Lagoon project, which will feature a 20.5km breakwater wall enclosing around 70km² of Severn Estuary and accommodating up to 108 tidal lagoon turbines within at least two powerhouse units.
The project is expected to handle the flow of some 600 million cubic metres of water through its turbines on each tidal cycle.
Image: Project site of Cardiff Tidal Lagoon power plant. Photo: courtesy of Tidal Lagoon Plc and Tidal Lagoon (Swansea Bay) Plc.