The delay reflects ongoing efforts to secure crucial government support and funding amidst the complexities of developing a tidal range barrage scheme across the River Mersey, which would be the first of its kind in the UK. The scheme is designed to harness tidal range energy via 28 turbines with a total generating capacity of 700MW, capable of powering hundreds of thousands of homes sustainably for over 120 years.

The project, which is pivotal LCRCA’s corporate objectives and regional climate action strategy, had initially aimed for a planning submission by 2026 and FID by 2028.

However, a project update report to be scrutinised at LCRCA this Friday, 23 January, says that despite positive governmental interest and inclusion of tidal range energy in the draft National Policy Statement for Energy, continued negotiations with multiple government departments have yet to yield the development funding necessary to advance a full business case. The authority’s recent Growth Plan said the project would be backed by £70M in development funding to make it “shovel ready” by 2028, but it has not yet secured the cash.

Over the past year, dialogue with the Department for Energy Security and Net Zero (DESNZ) and senior ministers has been constructive, and while there is support for the concept, securing additional policy and subsidy mechanisms remains a critical hurdle. This has prompted LCRCA to seek approval to increase procurement thresholds for multi-year contracts vital to progressing Phase 4 development activities, including detailed project consenting, engineering and environmental work required for the statutory Development Consent Order (DCO) process.

The Mersey Tidal Power Project is classified as a Nationally Significant Infrastructure Project, requiring a comprehensive, multi-year consenting process including an Environmental Impact Assessment. Since receiving approval to proceed with the consenting phase in March 2024, the project team has submitted a Scoping report to the Planning Inspectorate and obtained a Scoping Opinion, both key steps in the pre-application process that is expected to span several years.

Parallel to regulatory preparations, studies have emphasised the project’s broader environmental and social benefits. Updated flood risk modelling, reflecting future sea level rise and climate change projections, indicates that numerous properties and critical infrastructure in the Mersey estuary face heightened flood risks. The proposed tidal barrage could provide significant flood protection upstream and downstream of the estuary, simultaneously delivering a reliable, renewable energy source. This dual function strengthens the project’s core objectives of contributing to carbon reduction and long-term climate resilience in the region.

The recent National Electricity System Operator study reinforces tidal energy’s potential to stabilise wholesale electricity prices and balance the national grid, though it underscores the need for further exploration of financing models. Engagement with Great British Energy and the National Wealth Fund signals ongoing interest in harnessing tidal range projects as a strategic clean energy solution for the UK.

While the project’s timeline has shifted, LCRCA remains committed to advancing the Mersey Tidal project as a long-term component of the region’s energy and climate strategy, with anticipated completion in the late 2030s. The authority is also keen to build wider public support through continued stakeholder engagement and transparent consultation, recognising the importance of securing a “social licence” to deliver the ambitious scheme.

Funding for Phase 4 development is included in the LCRCA’s approved budget for 2025-26, with contingency for additional government or external support. Delegated authority has been requested to streamline the procurement of key services such as front-end engineering design and legal advisory support, ensuring continuity and momentum across the project’s complex workstreams.

While the Mersey Tidal Power Project faces delays largely driven by the need for stronger government backing and financial frameworks, its strategic importance remains undiminished. By addressing climate adaptation, flood protection, and renewable energy generation, the scheme stands out as a visionary infrastructure endeavour with benefits extending well beyond the immediate regional context and throughout the coming century.

Beyond its environmental significance, the project is projected to create 3,300 highly skilled jobs, positioning Liverpool City Region as the UK’s epicentre for tidal manufacturing and associated supply chains. The project is expected to cost around £3.5bn and has been touted as the largest engineering project in the North West. Initial non-statutory public consultation on the project saw a very positive response.

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