The government has announced a fresh feasibility study into the Severn Barrage, a tidal power plan that could provide about 5% of UK electricity.
Speaking at the Labour Party's annual conference in Bournemouth, business and enterprise secretary John Hutton said the concept was "truly visionary".
Some environmental groups have warned the barrage could affect wildlife.
The idea was first floated about 150 years ago, but environmental and cost concerns have always blocked approval.
It was last seriously considered in the 1970s and 80s.
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