He said: "This funding will help us understand the potential of these emerging ideas and whether, and how long, we would have to wait for them to come to fruition."
He claimed that the Severn Estuary has massive potential.
"As well as this shortlist, I am keen to keep innovative options on the table," he added.
Five schemes were picked from a total of 400 responses in January of this year.
However, environmental campaigners claim the government's selection favours large developments that may have an adverse impact on the regions wildlife and biodiversity.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.