Electricity supplier Good Energy is to invest in the proposed Swansea Bay tidal lagoon project.
The Planning Inspectorate is considering Tidal Lagoon Power’s application for a 9.5km sea wall and renewable energy plant on the site.
Now Good Energy has secured an option to purchase 10% of the projected annual 495GWh power output. It has also taken an equity stake of £500,400 in operating company Tidal Lagoon (Swansea Bay).
Good Energy chief executive Juliet Davenport said: “This project will enable us to diversify our business by adding tidal energy to our existing portfolio of renewable energy generation.
“This forms part of our long-term strategy of investing in UK renewable generation assets, securing renewable electricity for our rapidly growing customer base and playing a part in helping the UK secure its energy future.”
Work could begin on site next spring, with power projected to be connected to the National Grid by 2018.
Tidal Lagoon Power said earlier this year that it wanted Welsh construction companies to play a major role in the construction project.