Tidal barrages and lagoons will be looked at in the feasibility study which will analyse the potential environmental, social and economic impacts of the possible projects. It will enable the Government to decide whether and on what terms it could support a tidal power project.

One of the possible technologies, a Severn Barrage, would harness the power of the Estuary using the proven technology of a hydro-electric dam, but filled by the incoming tide rather than by water flowing downstream. Such a project, as the recent report from the Sustainable Development Commission confirmed, has the potential to generate some 5% of UK electricity from a renewable British source.

John Hutton said:  "The potential scale of this project, and the impact it could have for both securing energy supplies and tackling climate change is breathtaking. The Severn Estuary has some of the best tidal potential in the world and could more than double the current UK supply of renewable electricity, and contribute significantly to targets for renewable energy and CO2 emissions reduction."

The study, which will include a Strategic Environmental Assessment, is expected to last roughly 2 years. It is expected to conclude with a full public consultation in early 2010.

The work will be done by a cross-Government team, also involving the Welsh Assembly Government and the South West Regional Development Agency, bringing together expertise from a number of organisations and engaging stakeholders and the public at large.

The publication of the terms of reference comes on the day that the Energy Bill receives its second reading in the House of Commons.

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