Question

To ask the Secretary of State for Energy and Climate Change, when she expects to inform the Swansea Bay Tidal Lagoon renewable energy project of its contract for difference strike price.

We are in the first phase of a negotiation with Tidal Lagoon Swansea Bay PLC for a Contract for Difference (CFD) for the proposed Swansea Bay Tidal Lagoon project.

This first phase is a due diligence exercise to establish a better understanding of the project, including detailed scrutiny of its costs, timescales and potential benefits.

Being in a bilateral negotiation does not mean that an agreement on a strike price will be reached or that a CFD will necessarily be awarded.

If there were to be a decision to offer a CFD, it would be subject to strict value for money considerations, the funds available within the Levy Control Framework at the time of a decision and be subject to State aid approval by the European Commission.