Ein cyf/Our ref: NICW/25/DC/RR/Tidal

The Rt Hon Rachel Reeves MP

Chancellor of the Exchequer

Copied to:

The Rt Hon Ed Miliband MP;

Secretary of State for Energy Security and Net Zero

28 July 2025

Dear Rachel,

Re: Realising the Full Value of Tidal Lagoons

Following a recent study tour to Conwy and Ynys Môn, the National Infrastructure Commission for Wales engaged with a number of infrastructure professionals, including key individuals involved in the development of tidal lagoon projects.

As a Commission, we remain firmly supportive of the potential of tidal lagoons to contribute to the UK’s long-term infrastructure and energy resilience. We note with concern the previous UK Government's decision not to support the Swansea Bay Tidal Lagoon project, despite the positive findings of the Hendry Review. In our view, that decision was a missed opportunity — one that failed to anticipate the volatility and uncertainty that have since emerged in global energy markets.

Critically, the previous evaluation process did not account for the wider, long-term benefits that tidal lagoons can deliver beyond clean energy generation. These include habitat restoration, enhanced coastal protection, and opportunities for tourism and recreation, all of which support local economies and climate resilience.

We would therefore welcome your assurance that any future assessment of tidal lagoon projects will adopt a comprehensive, multi-benefit approach. In particular, we believe there is scope for such projects to be considered within the context of coastal defence strategies. In north Wales alone, tens of millions of pounds have been spent on conventional coastal protection over the past decade. Tidal lagoons could offer a sustainable, cost-effective alternative that protects communities while also contributing to our net zero ambitions.

I am pleased to also incorporate the signatures of:

• Prof. John Reynolds, Chair of North Wales Tidal Energy & Coastal Protection Ltd
• Jim O’Toole, Managing Director of Mostyn Seapower Limited

Yours sincerely,

Dr David Clubb, Chair, NICW