Tidal Lagoon Power (TLP) has accepted an offer from the National Grid Electricity Transmission Plc (UK) to secure grid connection for the 3,240 MW Cardiff Tidal Lagoon offshore project (located between Cardiff and Newport). An investment of around £8bn is estimated to be required for the project, which is expected to handle the flow of some 600 mcm of water through its turbines on each tidal cycle.
TLP has been conducting preliminary engineering and environmental during the last three years for the tidal project, which is anticipated to produce more than 5,500 GWh of energy annually. TLP is expecting to receive consent to develop the facility by 2019 as well as final permission from the UK government to develop a separate tidal power project in Swansea Bay, which is expected to feature 320 MW of installed capacity.
TLP estimates that large scale tidal lagoons could be built in the UK at a cost of £65/MWh to £85/MWh, which is cheaper than the £92.50/MWh subsidy rate which was awarded to France’s EDF in 2012 to build the Hinkley Point C project.