A £7 BILLION tidal lagoon near Newport could power all the homes in Wales, councillors have been told.

Cardiff council’s cabinet received a report yesterday about the potential of a lagoon generating electricity from wave power, stretching from just over a mile out from Cardiff Bay to the a mile from the mouth of the River Usk.

And they are now set to “fully consider” the proposal by a private company.

Meanwhile, ‘Cardiff’ lagoon developers, Tidal Lagoon Power, are also thinking about building a lagoon off the coast of Newport near Redwick.

Cardiff council’s director of city operations Andrew Gregory said in a report to the cabinet: “The potential of a tidal lagoon project off the coast of Cardiff has been mooted in the public domain.

“Although the opportunity remains at an initial stage of development, the council has been approached by a private sector company with an interest in developing the concept into a major project.

“In response, the council needs to consider fully the opportunities, impacts and risks involved in such a major undertaking. Part of this work will need to involve a shared understanding of the issues arising from tidal power generation along the Severn Estuary in the context of work being undertaken by Great Western Cities.

“This will need to inform the council’s own assessment of a development that would cost up to £7 billion and generate circa 600 MW of energy per annum. The implications of such a scheme for Cardiff need to be clearly understood.”

The Tidal Lagoon Power website says a lagoon between Cardiff and Newport could generate 1,800MW to 2,800MW with an annual output of four TWh and six TWh – enough to power all Welsh homes.

It said this would provide “clean, renewable and entirely predictable power” for 120 years, also offering improved and enhanced coastal flood protection in the region.

This lagoon would be the second tidal lagoon to be built in Wales after one near Swansea.