InfraRed Capital Partners has been unveiled as the final equity partner in the project, equalling the investment already pledged by Prudential.

Under the £1bn scheme, a tidal lagoon generating around 500GWh of electricity per year for 120 years will be created in Swansea Bay and will establish a scalable blueprint for a total of six lagoons across the UK.

“The power station is unique in that it not only leverages the estuary’s second highest tidal range in the world but it will also make a material contribution towards both the local economy in South Wales and the long term stability of sustainable energy supply in the UK,” said InfraRed chief executive Werner von Guionneau.

In January, the Westminster government launched a consultation on how a Contract for Difference could be drawn up with private developer Tidal Lagoon Power to ensure the scheme will provide value-for-money for both taxpayers and energy customers