The UK's Department of Energy and Climate Change today (26th January)unveiled a shortlist of five schemes that will be considered to extract energy from the the Severn estuary. The tidal range of the the Severn estuary is the second highest in the world. The shortlist includes a mixture of barrages and innovative lagoon schemes. The largest of the schemes being taken forward has the potential to generate nearly 5% of the UK's electricity from a domestic, low carbon and sustainable source.

The Energy and Climate Change Secretary Ed Miliband also took the opportunity to announce £500,000 of new funding to further develop embryonic technologies like tidal reefs and fences. The progress of these technologies will be considered before decisions are taken whether to go ahead with a Severn tidal power scheme.

Commenting on the move Ed Miliband said: "The Severn estuary has massive potential to help achieve our climate change and renewable energy targets. We want to see how that potential compares against the other options for meeting our goals.

"The largest proposal to harness the power of the tides on the shortlist could save as much carbon dioxide as all the residential emissions from Wales.

"The five schemes shortlisted today are what we believe can be feasible, but this doesn't mean we have lost sight of others. Half a million pounds of new funding will go some way to developing technologies still in their infancy, like tidal reef and fences. We will consider the progress of this work before any final decisions are taken.

"We have tough choices to make. Failing to act on climate change could see catastrophic effects on the environment and its wildlife, but the estuary itself is a protected environment, home to vulnerable species including birds and fish. We need to think about how to balance the value of this unique natural environment against the long-term threat of global climate change. It is vital we seek public views and collect all information we need to make sure our climate change actions are ambitious yet fair."

Responding to the launch of the Government’s public consultation on the study, Lord Chris Smith, Chairman of the UK's Environment Agency, said: "The Government has ambitious and essential targets on renewable energy generation and harnessing the tidal power of the Severn Estuary could help to achieve them.

"The rivers Severn, Wye and Usk also include important ecological sites and protected species, and are some of the most important fishing rivers in Britain. The study must identify schemes that are environmentally-sensitive, but also help us meet renewable energy targets. The Environment Agency will assess the environmental impacts of the proposed options and provide expert advice to the study."

The proposed shortlist is as follows:

Cardiff Weston Barrage: A barrage crossing the Severn estuary from Brean Down, near Weston super Mare to Lavernock Point, near Cardiff. Its estimated capacity is over 8.6 Gigawatts - twice that of the UK's largest fossil fuel power plant - and it could generate nearly 5% of UK electricity.

Shoots Barrage: Further upstream of the Cardiff Weston scheme. Capacity of 1.05GW, similar to a large fossil fuel plant.

Beachley Barrage: The smallest barrage on the proposed shortlist, just above the Wye River. It could generate 625MW.

Bridgwater Bay Lagoon: Lagoons are radical new proposals which impound a section of the estuary without damming it. This scheme is sited on the English shore between east of Hinkley Point and Weston super Mare. It could generate 1.36GW.

Fleming Lagoon: An impoundment on the Welsh shore of the estuary between Newport and the Severn road crossings. It too could generate 1.36GW.

Over the past year, the Government-led feasibility study has been investigating a list of ten options, gathering information on the costs, benefits and environmental challenges of using the estuary to generate power. All ten projects and the proposed shortlist will now be subject to a three month public consultation which begins today.