A PLANNED £8 billion renewable energy project off the coast of Newport has signed a deal to power homes across the UK.

The National Grid has approved plans to connect to the planned tidal lagoon project between Cardiff and Newport, which will reportedly be able to generate enough energy to power every home in Wales.

Tidal Lagoon Power, which is developing the project, has said the facility would provide cheaper energy than any other power station in the UK.

Chief executive Mark Shorrock said: “We have secured the grid connection for a tidal power station equal in installed capacity to Hinkley Point C.

“Looking at the pounds per megawatt hour unit cost of new build power stations, nuclear is currently priced in the nineties, the latest offshore wind projects are expected to drop into the 70s and our models show Cardiff Tidal Lagoon beating them all in the 60s.

“What’s more, by leveraging the commanding position taken by UK industry preparing for Swansea Bay Tidal Lagoon, the supply chain contracts awarded for Cardiff Tidal Lagoon will be worth more than £6 billion to UK companies”.

A tidal lagoon involves a series underwater turbines, which are turned by the tidal flow of the sea, generating power as they do.

A similar project in Swansea, the first of its kinds in the world, is currently in the planning stages.

If it is a success the scheme in Newport, and potentially others elsewhere, are expected to go ahead.

Newport City Council leader Cllr Debbie Wilcox welcomed the news, saying: “This exciting new project is fantastic news for our city and our partners in the Cardiff Capital Region.

“It represents a massive boost in confidence in the region and the promise of cleaner, cheaper power and thousands of jobs is very welcome.

“We wish Tidal Lagoon Power all the best in pulling together such a successful project.”

It is estimated the project could create more than 3,000 construction jobs and more than over manufacturing jobs in the supply chain.

Cardiff Council leader Cllr Huw Thomas also welcomed the news, calling it “an important milestone in progressing a hugely exciting and potentially transformative project”.

“The National Grid deal could play a key role in driving the project forward, making this extraordinary vision a reality,” he said.

“There’s little doubt the opportunities are huge.

“Thousands of jobs could be created delivering low carbon energy.”