The Swansea Bay Tidal Lagoon (www.tidallagoonpower.com) can be delivered without UK Government funding, according to an independent report by Holistic Capital, which says it is a fundamentally strong proposition and an ‘exceptional’ project that could provide clean power for generations to come.

The report’s recommendations could help pave the way for a wholly independent Welsh-based solution to ‘delivering’ the project.

A taskforce is being set up to consider alter-native delivery and financing models, working closely with public-sector stakeholders as well as private-sector institutions.

The report recommends a new approach to procuring the lagoon, using a single construction company rather than two to make the construction simpler and cheaper.

It also suggests funding the project without the need for UK Government financial support through a Contract for Difference.

This includes a Welsh Government Bond issue, plus introducing an opportunity for the lagoon to sell energy directly to customers, which could significantly improve its revenue stream.

The Holistic Capital report comes a month after the UK Government turned its back on the lagoon project, with Business and Energy Minister Greg Clark describing it as ‘not being value for money’ — despite the independent Hendry Report concluding that the lagoon was a ‘no regrets’ option.

Paul Marsh, Holistic Capital CEO, said: “The lagoon is a clearly deliverable technical proposition, using the latest evolution of a proven technology that was first developed 200 years ago.

"The project can be funded independently of UK Government, and potentially delivered as a purely Welsh initiative. We believe — based on our in-depth review — that the original £1.3 billion cost of the lagoon can be reduced.

"Together with new funding models, that makes the project significantly more viable than originally proposed.”