Cash earmarked for tidal power schemes

By Philip Stafford
Published: April 27 2009 03:00

Small businesses in Wales may be concerned about the expense of crossing the Severn Bridge, but entrepreneurs could be more interested in what flows underneath it.
Earlier this month, the Welsh Assembly, together with the Department of Energy and Climate Change, earmarked a £500,000 fund to help new environmental technology companies to develop ways of generating electricity from tidal power of the river, which has the world's second-biggest tidal range at 45ft (14m).
The Welsh Development Agency estimates that about 5 per cent of the UK's electricity could be generated from a scheme and welcomed comments from Alistair Darling, the Chancellor, this week that promised to develop green technology.
Yet the idea to harness its power is not a new one, and is seen as one of the UK's more promising areas as the government looks to meet renewable energy targets. Last week saw the end of the Department of Energy and Climate Change's first public consultation over a proposed 10-mile hydroelectric barrage between Cardiff and Weston-super-Mare in England.
Environmentalists have raised concerns about the effect on fish stocks and on the mud flats, which are protected by European environmental laws. Government ministers have also indicated that it could cost up to £22bn and may require taxpayers money. Nevertheless, smaller barrage and lagoon schemes have also been put on a shortlist of five potential schemes.
Even so, it is likely to be many years before a scheme comes to fruition. In the meantime, south Wales has become another home to advanced manufacturing technology to lessen its dependence on heavy industry, and has largely avoided the large-scale cutbacks seen in other industries.
Among the companies benefiting from the focus on green technology are Aim-listed Enfis, the LED lighting group.
With legislation around the world phasing out incandescent lighting, Enfis last year saw revenues soar more than 430 per cent to £1.6m, and this month it completed a share placing to raise £2m to fund future growth.
Copyright The Financial Times Limited 2009