Tidal Lagoon Sees $2.7 Billion of Turbine Orders for U.K. Workby
Lagoon in Cardiff Bay will require 90 power turbines
Approved Swansea Lagoon requires just 16 power turbines
Tidal Lagoon Power Ltd. said the second project it’s planning in southern Wales will probably spur a 1.75 billion pounds ($2.7 billion) order for power turbines as it seeks to increase the scale of facilities and cut costs.
The new plant in Cardiff Bay lagoon will need 90 turbines, Chief Executive Officer Mark Shorrock said Friday at a conference in Berlin. That’s bigger than the project in Swansea Bay that received planning permission in June to install 16 machines costing 300 million pounds.
“We know exactly how much the waters are going to rise and waters are going to fall because of the dance between planet Earth and the moon,” Shorrock said at the opening of a new research center for General Electric Co., which is supplying the turbines for the Swansea project along with Andritz AG. “In Cardiff, the next lagoon after Swansea, we only have to build double the wall length.”
U.K. renewable energy developers are trying to bring down costs as the government reduces assistance to the industry. Tidal Lagoon Power will benefit from cost savings in its second project due to the need for a shorter wall relative to the size of the project.
The 320-megawatt Swansea Bay project, which has a total budget of 1 billion pounds, will need to sell power for about 168 pounds a megawatt-hour, Poyry Oyj estimates. The bigger Cardiff plant would need only about 90 pounds to 95 pounds a megawatt-hour, Tidal Lagoon Power has said. That compares with the current month-ahead power price of about 41 pounds per megawatt-hour.