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Delays over energy infrastructure projects threaten our national identity

Nelson Ogunshakin

Our image as a progressive nation is at risk while the Hinkley Point C and Swansea Tidal Lagoon projects are delayed, says Nelson Ogunshakin

The professional consultancy and engineering sector, which is at the forefront of capital project development, is going from strength to strength. The government has taken impressively clear action to improve critical infrastructure as HS2, Crossrail and the Northern Powerhouse agenda surge ahead. However, indications that decisions pertaining to the energy sector are faltering may relegate what could be an infrastructure boom to a flash in the pan.

Two long-standing energy generation projects have recently looked increasingly beleaguered, a show of form that must be reversed if the UK is to remain energy-secure. Both Swansea Bay Tidal Lagoon and Hinkley Point C are facing delays in decisions to fund the projects amid fears that they will be too costly to justify expenditure. I would argue, however, that these projects will not only contribute to the invaluable instrumental goal of energy security, but also have a symbolic value that is just as important to UK PLC.

Swansea Bay Tidal Lagoon is a genuinely ground-breaking project that is going unduly cold at the moment. Once heralded as a key point in the energy plan laid out in the Conservatives’ 2015 election manifesto, David Cameron’s enthusiasm for the project is now said to be ‘reducing’. Indeed, just last week, it was announced that an independent review would be launched into the feasibility of tidal lagoon energy in the UK – perhaps an existential threat to the project.

In spite of these challenges, I remain hopeful. The scheme already has planning permission, an intelligently laid-out supply chain and £200 million from equity sponsors, not to mention huge local, national and international support. Indeed, the project has recently agreed to a strike price that rivals new nuclear plants, proving its competitiveness.

Swansea Bay Tidal Lagoon represents a modern Britain – green, decentralised and enterprising

Importantly, what is at stake here is not simply the £1 billion facility, but the entire legacy of the UK’s tidal energy generation. If tidal energy in the UK was a housing development, Swansea is but a marketing suite; it is designed to prove the efficacy of this kind of project so that larger projects (benefitting from economies of scale) can be rolled out along the west coast, providing clean energy for millions. Swansea Bay Tidal Lagoon represents a modern Britain – green, decentralised and enterprising – and I would encourage the government to push past the current sticking points so that construction can begin. It is the thin end of a green energy-generating wedge that we must support to secure Britain’s energy and make a statement about the country we can become.

The decision to begin work on Hinkley Point C is the second deliberation to dither. Indeed, dithering has characterised this process for some time; back in 2007, Vincent de Rivaz, EDF’s boss in the UK, said that the British would be cooking turkeys using Hickley power by Christmas 2017, for example. Indeed, the largely state-owned French energy giant is under financial pressure and is struggling to finance the £18 billion project, even with China’s state nuclear firm CGN picking up the slack and taking on a third of the costs. The impasse came to a head this week when the company’s finance director, Thomas Piquemal, resigned because he views the debt EDF would take on as a result of committing to the project is too severe. Though Piquemal’s sudden departure could be read as a symptom of further chaos, it could indicate that a staunch opponent to Hinkley Point C’s development is making a last-ditch attempt to arrest a deal.

Despite all this, Hinkley Point C represents a good opportunity for the UK to meet its energy needs. In 2013 the site received planning permission and a strike price was agreed, which would make it competitive with other low-carbon generation methods. Over the 60 years the plant would operate, it would save the UK 600 million tonnes of carbon dioxide, all while producing 7 per cent of the UK’s generation needs. Even before the facility formally begins producing electricity, the construction process will create 25,000 new jobs.

Beyond the stats, Hinkley Point C symbolises an opportunity to embrace our stated values of openness and internationalism with expertise and capital from around the world coalescing to produce something that would make a real impact. Hinkley Point C gives the UK the chance to reframe nuclear energy post-Fukushima as not only safe, but an essential ingredient to a healthy mix of energy generation. Here the UK can boldly push ahead with nuclear power – proving it is open to businesses and world-leading, even in the event of a crisis. What is clear is that these projects – though having measurable outputs, creating jobs, promoting investment and providing electricity – also have important, softer impacts that change the way others think of us and, perhaps most importantly, how we think about ourselves.

All good engineers understand that the results of their work mean more than just projects’ instrumental outputs. How we solve the critical problem of energy security is more than just about avoiding blackouts. Rather, going ahead with these projects would indicate that the UK is a progressive, green and outward-looking nation, the country we always aspire to be. If we embrace innovation and enterprise in this instance, it enables us to retain the fantastic position we are currently in – any decisions to the contrary might mean we lose our spark.

Nelson Ogunshakin is chief executive of Association for Consultancy and Engineering (ACE)


Readers' comments (2)

  • The Swansea bay tidal scheme is essential for a green energy future and will be vital for the local economy. If the government fail to deliver this flagship then they will have failed altogether.

    We are trying to get a smaller project off the ground in North Devon : https://www.youtube.com/watch?v=sIDJd9VLz70
    A new tidal power scheme & activity area on the Taw, Barnstaple, Devon
    Initial calculations indicate that there is potential for a helical turbine system to be constructed that could generate up to 4MW of electricity. This is enough energy to supply 4000 homes; or the whole of Barnstaple Town Centre.

    Of course there are huge environmental considerations. One-world design is at the stage of developing a design brief and testing early feasibility, we am aware that proposed site is outside the SSSI but such an installation is likely to have significant impacts on a wide range of ecological features and processes, e.g. fish and bird movements, drying times of saltmarsh, grazing marshes and mud banks. Due to the large number of environmental constraints on the Taw-Torridge estuary and its surroundings a project of this nature will be subject to a rigorous consultation process. However, there are workable solutions to all these issues and the potential prize is a thriving, forward looking Barnstaple that sets a new benchmark for economically and environmentally sustainable development.

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  • Scottish Power Renewables obtained the main consent for a ten turbine tide stream array in the fast flowing Sound of Islay, between Islay and Jura, five years ago - but there seems to be no progress with this demonstration project, and all it does is demonstrate the disarray in some of the new energy infrastructure management in this country.

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