In September last year I announced Government’s commitment to study the feasibility of generating electricity from the tidal range of the Severn estuary, which—as the recent report of the Sustainable Development Commission confirmed—has the potential to generate some 5 per cent. of UK electricity from a renewable indigenous resource. I am publishing today the terms of reference for the study. These are:

“Building on the work of the Sustainable Development Commission and earlier studies, the feasibility study will:

assess in broad terms the costs, benefits and impact of a project to generate power from the tidal range of the Severn estuary, including environmental, social, regional, economic, and energy market impacts;

identify a single preferred tidal range project (which may be a single technology/location or a combination of these) from the number of options that have been proposed;

consider what measures the Government could put in place to bring forward a project that fulfils regulatory requirements, and the steps that are necessary to achieve this;

decide, in the context of the Government’s energy and climate change goals and the alternative options for achieving these, and after public consultation, whether the Government could support a tidal power project in the Severn estuary and on what terms.

The work will be carried out by a cross-Whitehall team led from the Department for Business, Enterprise and Regulatory Reform, including representatives of the Welsh Assembly Government and the South West Regional Development Agency, taking external advice as necessary and engaging stakeholders and the wider public. The study is expected to last roughly two years.

The study will look at the range of options for power generation from the Severn estuary tidal range, including barrages, lagoons and other technologies. It will include a strategic environmental assessment of plans for generating electricity from the Severn estuary tidal range to ensure a detailed understanding of its environmental resource, recognising the nature conservation significance of the estuary.

The feasibility study team will report to the Secretary of State for Business, Enterprise and Regulatory Reform supported by ministers from DCLG, DEFRA, DfT, Treasury, Wales Office, the Welsh Assembly Government and the Minister for the South West.

If the outcome of the feasibility study is a decision to proceed, extensive and detailed further work would be needed to plan and implement a tidal power project, and secure the regulatory consents that would be required”.

A high level workplan showing the different strands of work and their timing is annexed at the end of this statement. These terms of reference and the workplan will be published on the BERR website.

I will be hosting a parliamentary forum for all interested MPs and Peers on 20 February—details of this will be deposited in the Libraries of both Houses nearer the time. Further details of external engagement plans will also be published on the BERR website shortly.