Wales planning news, June 2018

News

Wales planning news, July 2018

02 Jul 2018
       
 

Contents

 
       
         
 
 
 
 
01
 
 
 
02
   
 
03
 
 
 
04
 
 
 
 
 
 
 
 
     
 

Headline news

 
     

Swansea tidal lagoon plans rejected

On 25 June, Business and Energy Secretary Greg Clark delivered an oral statement to Parliament announcing the UK Government decision not to progress the Swansea Bay tidal lagoon scheme.
The decision was taken based on the conclusions of the ‘value for money’ analysis for the proposed scheme, which were shared with the Welsh Government. The assessment highlighted how the Swansea tidal lagoon would not meet the requirements for value for money and, therefore, the use of public funds to support it would not be justifiable.
The statement underlined how the proposed scheme would cost £1.3bn and it would provide ‘if successful to its maximum ambition’ around 0.15% of the annual electricity needed in the UK. On the other hand, Greg Clark highlighted how ‘[t]he same power generated by the lagoon, over 60 years, for £1.3bn, would cost around £400m for offshore wind even at today’s prices.’
In his Statement Greg Clark said:
‘Securing our energy needs into the future has to be done seriously and, when much cheaper alternatives exist, no individual project, and no particular technology, can proceed at any price. That is true for all technologies. The fact that this proposal has not demonstrated that it could be value for money does not mean that its potential is not recognised.’
Welsh Secretary Alun Cairns commented:
‘I realise the disappointment this decision may cause, but ultimately this project did not meet the threshold for taxpayer value. […] It’s important to stress that the issue here is specifically with the tidal lagoon application, not the concept of marine energy itself.’

Department for Business, Energy and Industrial Strategy, Proposed Swansea Bay tidal lagoon, Oral Statement to ParliamentDepartment for Business, Energy and Industrial Strategy, Swansea Bay tidal lagoon: value for money assessmentOffice of the Secretary of State for Wales, Welsh Secretary responds to decision on the proposed Swansea Tidal Lagoon

     

 

Quote of the month

 
     
     
     
 
The inescapable conclusion of an extensive analysis is that however novel and appealing the proposal that has been made is, even with these factors taken into account, the costs that would be incurred by consumers and taxpayers would be so much higher than alternative sources of low carbon power, that it would be irresponsible to enter into a contract with the provider.
Business and Energy Secretary Greg Clark announcing the UK Government decision not to progress plans for the Swansea Bay tidal lagoon scheme
 
     
     

 

Contract signed for £5bn railway investment

Welsh First Minister Carwyn Jones has announced the contractor that will operate and develop the Wales and Borders rail service, as well as the South Wales Metro (in partnership with Transport for Wales).
KeolisAmey, an international joint venture of public transport operator Keolis with infrastructure asset management specialist Amey, has been awarded a 15-year contract to run the services under the Transport for Wales brand.
Amongst the benefits of the new Wales and Borders rail contract, the £200m investment to modernise all 247 railway stations, as well as the commitment for all the stations to be 100% powered by renewable energy, actively contributing to achieving the Wellbeing of Future Generation Act’s policy goals.
Welsh Economy and Infrastructure Secretary Ken Skates welcomed the benefits that arise from the devolution of rail powers to the Welsh Government, commenting:
‘This is the first time a rail service has been procured and awarded in Wales, for Wales. It follows over four years of intense work to develop a bespoke, innovative approach and responds to the lessons learned from rail franchising and infrastructure delivery across the UK in recent years’.

Welsh Government, £5 billion investment to transform rail services across Wales

World-leading rail testing centre to be built in Wales

Following the news that the Wales and Borders rail service contract has been awarded to KeolisAmey (see news item above), Welsh Transport Secretary Ken Skates has announced plans for a ‘world-leading’ rail testing complex to be built in Wales.
The complex will provide a bespoke innovation accelerator, rolling stock and infrastructure testing, as well as storage, maintenance and servicing asset to the railway industry and the wider supply chain.
A number of potential sites for the Centre are being researched at the moment, although the current preferred option is 'the mothballed open cast mine in Nant Helen, on the Powys and Neath Talbot border, together with the adjacent coal-washery site in Onllwyn'.
 

Welsh Government, Global centre of rail excellence to come to Wales

£100m investment for a train depot in Taffs Well

The Welsh Government has announced that it will invest nearly £100m for a new Transport for Wales train depot. Construction works are expected to start in 2019, while completion is currently scheduled for mid 2022.
Furthermore, and as a consequence of a wider £194m Welsh Government investment in station improvements (see news above), Taffs Well railway station will also be modernised, to improve commuter access to the South Wales Metro.
Welsh Economy Secretary Ken Skates commented:
‘The construction of the Taff’s Well depot presents one of the first opportunities for Welsh suppliers to directly benefit from our £738m investment in the South Wales Metro which will see us creating a sustainable and connected transport infrastructure.’

Welsh Government, New £100m train depot to open in Taffs Well

     

 

The Lichfields perspective

 
     
     
     
 
The UK Government decision not to support the tidal lagoon project at Swansea Bay is surely disappointing, especially for the time it has taken to get to the final decision. Being at the forefront of testing innovative tidal lagoon technology in Wales would have been a great opportunity for the local economy. The UK Government’s decision will be felt widely across not only Swansea Bay but the whole of Wales and we now wait to see if an alternative business model will be put forward by the scheme’s proposers.
Helen Ashby-Ridgway, Associate Director
 
 
  
 
     

 

Disclaimer: This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Lichfields accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. Lichfields is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116