Written Statement - Severn Tidal Power

Following the UK Government’s announcement, earlier today on the findings of the Severn Tidal Power feasibility study, it is appropriate that I make a statement to Members.

The UK Government has today announced that it does not see a strategic case at this time for public funding of a tidal scheme to generate energy in the Severn estuary.

I would like to take the opportunity to thank all those who have worked so hard on the environmental, economic, technical and social aspects of this very useful study. It has given us a huge amount of intelligence and information on the renewable energy potential of the Severn estuary and on the potential for the wider deployment of tidal technologies which the Assembly Government supports.  The Severn represents a strategically important source of renewable energy, with the potential to generate some 5% of UK electricity supply.  It is right that we have taken the time to look at it and it is therefore right that Government should not rule out a future project.

Members will wish to be aware of some of the key findings of the study;

• Taking into account prudent cost predictions, a tidal power scheme in the Estuary could cost as much as £34bn;
• over their 120 year lifetime, some Severn schemes represent similar and in some cases better value for society than equivalent investment in offshore wind and coal generation with carbon capture and storage (CCS).
• the scale and impact of even the smaller schemes would be unprecedented in an environmentally designated area. Providing compensation for the damage would be very challenging, but we believe there are some private sector interests who are willing to consider this;
• Some habitats including saltmarsh and mudflat would be lost, this could potentially reduce bird populations of up to 30 species;
• Fish are likely to be severely affected with local extinctions and population collapses for some species, including Atlantic salmon and Twaite shad.
• water levels would also be affected creating an increased flood risk both around the Severn and further afield which would need additional investment in flood defences;
• overall a scheme is likely to benefit the regional economy with net value added to the economy and jobs created.  However, there would be negative impacts on the current ports, fishing and aggregate extraction industries in the Estuary.

The report argues that at this time other low carbon energy sources represent a better deal for taxpayers, industry and consumers. We await with interest the views of energy, construction and environmental experts on these findings  

In parallel with the feasibility study, work was undertaken on the development and assessment of alternative technology options which could provide a cheaper and less invasive alternative.  The Welsh Assembly Government, contributed to the half a million pound of funding to research this under the Severn Tidal Power Embryonic Technology Scheme (SETS) and I am disappointed that the UK Government’s announcement has not yet provided clear support for the further development of these alternative technology options.

Two of the three schemes assessed under SETS showed a good deal of potential for extracting renewable energy from the area. Further work is needed to develop these technologies to the point where they  may be considered as part of any future tidal power scheme.

Under SETS, proposers have, however been able to move a step closer towards maturity and have developed outline designs and Route Maps to deployment and I urge the UK Government and others to continue working with us and key business partners such as Veredeg and Rolls Royce  on the development of these  emerging technologies, not just for applications in the Severn but also in other locations around our resource rich  coast line.

Wales has a tremendous marine energy resource and we remain committed to exploiting that potential through the deployment of both wave and tidal technologies.  The sustainable exploitation of this resource will play a vital role in moving us towards achieving our climate change goals. These technologies represent a very real potential to provide a vital source of renewable energy for the whole of the UK increasing our energy security and helping in the global fight against climate change.

I would like to thank all those involved in the studies for their hard work, I am optimistic that  we can build on the evidence gathered to date, working in partnership with the Wales Low Carbon Research Institute, developers and other relevant academic groups to develop innovative marine  technologies that will place Wales at the forefront of  the marine energy sector, and ensure that we play a key role in supporting the UK’s renewable energy future.