Tidal Lagoon Power has also confirmed that early feasibility and engagement work is underway on four other full-scale tidal lagoons at Newport, West Cumbria, Colwyn Bay and Bridgwater Bay.

Together, the national fleet of six lagoons could meet 8% of the country’s total electricity requirement for 120 years.

The most ambitious plan for Tidal Lagoon Cardiff would include up to 90 turbines set within a 22km breakwater.

It has submitted an Environmental Impact Assessment scoping report to the Planning Inspectorate today for this second and larger tidal lagoon, capable of generating between 1.8GW-2.8GW.

It would enclose an area of around 70km2 with an average tidal range of 9.21m. The western side of the barrage would touch land 2km from the entrance to Cardiff Bay and the eastern landfall would be 2km from the mouth of the River Usk.

The lagoon has a design life of 120 years and would generate power for 14 hours each day.

Tidal Lagoon Power expects to submit a full planning application for Tidal Lagoon Cardiff in 2017, with a decision then expected in 2018.

The lagoon would take up to five years to build and could be powered on in 2022.

The company estimates a CFD strike price requirement of £90-£95/MWh for the project.

Robert Lloyd Griffiths, Director of the Institute of Directors in Wales: “Today’s announcement for Cardiff proves that the Swansea Bay project really does have the potential to kick start a whole new industry here in Wales and what’s more it can be delivered quickly.

“It is great to see that after so much talk about how we can harness the power of the Severn, we now have some very real plans to work with.”

Mark Shorrock, chief executive of Tidal Lagoon Power: “We will build on the template established for the Swansea Bay Tidal Lagoon – applying the expertise and learning, scaling the UK supply chain and Turbine Assembly Plant and leveraging the institutional investor partnerships we have developed.

“There is still a long way to go and many environmental surveys to undertake but we will work in partnership with all nature conservation bodies so as to understand, avoid, minimise and mitigate any environmental impacts.”