Streamlined environmental regulation key to future success of tidal lagoons, says expert

Former energy minister Charles Hendry this week urged the government to develop a "clear, long-term strategy" in favour of the technology, which he said had the potential to deliver low carbon, secure energy supplies in a cost effective way. Hendry was commissioned by the government last year to report on the "feasibility and practicality" of tidal lagoon power as a means of future energy generation for the UK.

However, energy and planning expert Gordon McCreath of Pinsent Masons, the law firm behind Out-Law.com, said that regulatory constraints remained a "significant barrier" to the long-term success of the ground-breaking technology, even more so than cost constraints.

"As matters stand, even a small amount of uncertainty about effect on habitats can be enough to cause significant delays to projects or even stop them altogether," he said.

"Put simply, consents laid out by the Habitats Directive require developers to show beyond all reasonable scientific doubt that there will be no adverse effect prompted by any major developments. To say this can be challenging for developers is an understatement. While this is designed to safeguard against any damage to habitat, the net result is a protracted, costly and unwieldy consenting process which can stop marine projects in their tracks and could halt the progress of transformational power projects," he said.

"While striving to eliminate all environmental impact is laudable, the nature and complexity of the marine environment and the limited data available makes granular environmental predictions incredibly difficult to achieve and almost impossible. The danger is that this challenge around environmental consents could lead to delays to lagoon projects coming online. From a policy perspective, government now has an opportunity to relieve the pressure imposed by such onerous EU laws," he said.

Hendry made 30 recommendations aimed at encouraging the development of tidal lagoon technology in the UK in his report to the government. However, he concluded that it was "not in [his] terms of reference to delve too deeply into the environmental challenges and their potential solutions".

"Comprehensive assessments already form an integral part of the development consent process, and regulators such as Natural Resources Wales and the Environment Agency already have statutory roles to play," he said in his report.

Energy company Tidal Lagoon Power (TLP) obtained planning consent for a 320MW, 16-turbine 'pathfinder' tidal lagoon project in Swansea Bay in June 2015. The project, which would use the ebb and flow of the tides to generate energy for conversion to electricity, could act as a pilot for larger schemes in Cardiff, Newport, Colwyn Bay, Somerset and Cumbria, according to TLP.

Hendry concluded that the cost of subsidies for the Swansea Bay project would add around 30p per year over the first 30 years to household energy bills, making it a "no regrets option" for the government. The five larger lagoons, which should be allowed to proceed if the pilot was proven to be successful, would each add a "very competitive" less than 50p to energy bills over their first 60 years of operation, according to Hendry.

The report also recommends the creation of a 'Tidal Power Authority', at arms length from the government, to oversee the new industry. Competition by way of competitive tender should be introduced for tidal lagoons as soon as possible after the pathfinder project, according to the report.

Energy secretary Greg Clark said that the government would consider Hendry's recommendations and publish a full response in due course.

"The issues are particularly complex as they relate to untried technology in the marine environment," he said.