It would be “utter madness” for the government to withdraw its support at this late stage from a £1bn revolutionary tidal energy scheme at Swansea Bay, Lib Dem leader Tim Farron will tell his party’s spring conference in Cardiff on Saturday.
The planned project, awaiting a funding decision from the Department of Energy and Climate Change, would provide hundreds of jobs and much-needed low carbon power for over a century, he argues.
Farron spoke out amid mounting speculation that ministers are growing cold on the tidal lagoon project, which was included in the Conservative manifesto but has been delayed by tortuous negotiations on subsidies.
“The Swansea Bay tidal lagoon must go ahead. It will provide hundreds of jobs and supply energy for 120 years – over three times as long as a nuclear plant,” argued Farron.
“It would be utter madness for the government to pull further investment from the renewable sector which generates economic growth and jobs. We have been a world leader in this field and maintaining that status is now in jeopardy. The tidal lagoon is a litmus test for the government. Do you care about this agenda? Or was it all for show?” he asks.
The speech comes after David Cameron told a committee of MPs recently that his enthusiasm for the scheme had been “reduced” by concerns over the high subsidies needed to make the project commercial.
“The problem with tidal power, simply put, is that at the moment we have not seen any ideas come forward that can hit a strike price in terms of pounds per megawatt hour that is very attractive,” he said.
Amber Rudd, the energy and climate change secretary, also omitted the lagoon scheme from a November keynote speech on energy infrastructure.
Tidal Lagoon Power, the company that wants to build the scheme and five others around the coast of Britain, said it was still “fully confident” that it could reach a deal with the government.
But the Conservatives have been slashing subsidies to other low carbon technologies such as solar and onshore wind and talking up gas schemes as a way of keeping down household fuel bills.
Swansea Bay was supported by former Lib Dem energy secretary, Ed Davey, noted Farron in his speech in Cardiff.
“For five years we fought sceptical Tories to ensure the coalition was the greenest government ever. In the last six months this progress has been unraveling at an alarming pace.
“The huskies, shot by Cameron ages ago when their usefulness to him had run its course, will be turning in their graves. I also feel sorry for Amber Rudd who was told by the prime minister that they‘d gone to live on a farm in Devon.”
A spokeswoman for the Department of Energy and Climate Change said: “Our priority is to provide secure, clean and affordable energy for hardworking families and businesses.
“We are carefully considering the Swansea Bay project to see whether it is in the best interest of bill payers. At this point it would be inappropriate to comment further.”
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