Energy secretary Ed Davey said the inclusion of the Swansea Bay Tidal Lagoon in the NIP shows the government is “serious” about the potential for tidal power.
He added: “That’s why we’re showing investors and developers that we’re serious about tidal lagoon potential and have started in-depth discussions for what could become the world’s first tidal lagoon.”
If it is established that the project is affordable and offers value for money for consumers, approval for the scheme could be granted to developer Tidal Lagoon Power ahead of the general election in May.
Tidal Lagoon Power say the £1 billion lagoon project would have a capacity of 320MW for up to 120 years, and could connect to the National Grid by 2018.
The NIP also included a boost for interconnectors, stating they will be able to participate in the 2015 capacity auction, on the same day that Ofgem approved plans for the Nemo link with Belgium.
HM Treasury has also reached a co-operation agreement which starts the process of allowing NuGen access to the UK Guarantee Scheme to promote financing for a new nuclear power station at Moorside.