Osborne unveils groundbreaking green energy tidal lagoon worth £1bn
Chancellor George Osborne has revealed he will usher in an expensive plan to build the planet’s first ever tidal lagoon.
The lagoon will generate green energy and coincides with controversial measures that will lower taxes for North Sea oil schemes.
"The government believes that there is significant potential for the deployment of tidal lagoons and tidal range technologies," according to the full Budget 2015 statement.
The tax breaks have been designed to prevent further falls in levels of oil production, which have plummeted alongside oil prices.
Additional negotiations have begun on a £1bn project to generate electricity from turbines in south Wales.
The final cost of the tidal lagoon endeavour has yet to be revealed though, as it will depend on various factors.
However, the Department of Energy and Climate Change has been given the opportunity to prove in south Wales that this type of project will be worthwhile.
If successful, similar structures will be developed around the country in what would ultimately be a £12bn project.
"Lagoon technology could theoretically contribute up to 25TWh/year, the equivalent of 8% of the UK’s electricity consumption in 2013 of indigenous, predictable and low carbon electricity," the Budget report said.