diff --git a/gusto/diagnostics/shallow_water_diagnostics.py b/gusto/diagnostics/shallow_water_diagnostics.py
index 024e58ecf..e873f53ca 100644
--- a/gusto/diagnostics/shallow_water_diagnostics.py
+++ b/gusto/diagnostics/shallow_water_diagnostics.py
@@ -11,7 +11,7 @@
 __all__ = ["ShallowWaterKineticEnergy", "ShallowWaterPotentialEnergy",
            "ShallowWaterPotentialEnstrophy", "PotentialVorticity",
            "RelativeVorticity", "AbsoluteVorticity", "PartitionedVapour",
-           "PartitionedCloud"]
+           "PartitionedCloud", "ShallowWaterAvailablePotentialEnergy"]
 
 
 class ShallowWaterKineticEnergy(Energy):
@@ -382,3 +382,37 @@ def compute(self):
         """Performs the computation of the diagnostic field."""
         self.qsat_func.assign(assemble(self.qsat_interpolate))
         super().compute()
+
+
+class ShallowWaterAvailablePotentialEnergy(Energy):
+    """Diagnostic shallow-water available potential energy density."""
+    name = "ShallowWaterAvailablePotentialEnergy"
+
+    def __init__(self, parameters, space=None, method='interpolate'):
+        """
+        Args:
+            parameters (:class:`ShallowWaterParameters`): the configuration
+                object containing the physical parameters for this equation.
+            space (:class:`FunctionSpace`, optional): the function space to
+                evaluate the diagnostic field in. Defaults to None, in which
+                case a default space will be chosen for this diagnostic.
+            method (str, optional): a string specifying the method of evaluation
+                for this diagnostic. Valid options are 'interpolate', 'project',
+                'assign' and 'solve'. Defaults to 'interpolate'.
+        """
+        self.parameters = parameters
+        super().__init__(space=space, method=method, required_fields=("D"))
+
+    def setup(self, domain, state_fields):
+        """
+        Sets up the :class:`Function` for the diagnostic field.
+
+        Args:
+            domain (:class:`Domain`): the model's domain object.
+            state_fields (:class:`StateFields`): the model's field container.
+        """
+        g = self.parameters.g
+        H = self.parameters.H
+        D = state_fields("D")
+        self.expr = 0.5*g*(D-H)**2
+        super().setup(domain, state_fields)
diff --git a/unit-tests/diagnostic_tests/test_sw-available-pe.py b/unit-tests/diagnostic_tests/test_sw-available-pe.py
new file mode 100644
index 000000000..79e4b5955
--- /dev/null
+++ b/unit-tests/diagnostic_tests/test_sw-available-pe.py
@@ -0,0 +1,33 @@
+
+from gusto.diagnostics import ShallowWaterAvailablePotentialEnergy
+from gusto.core.fields import StateFields, PrescribedFields, TimeLevelFields
+from gusto import (Domain, ShallowWaterParameters, ShallowWaterEquations)
+from firedrake import PeriodicSquareMesh
+import numpy as np
+
+
+def test_swavlbpe():
+
+    nx = 10
+    Lx = 1
+    H = 0
+
+    mesh = PeriodicSquareMesh(nx=nx, ny=nx, L=Lx, quadrilateral=True)
+
+    domain = Domain(mesh, 0.1, 'RTCF', 1)
+    params = ShallowWaterParameters(mesh, H=H)
+    eqn = ShallowWaterEquations(domain, params)
+    prog_fields = TimeLevelFields(eqn)
+    prescribed_fields = PrescribedFields()
+    state_fields = StateFields(prog_fields, prescribed_fields)
+
+    diagnostic = ShallowWaterAvailablePotentialEnergy(params)
+    diagnostic.setup(domain, state_fields)
+    diagnostic.compute()
+
+    print(diagnostic.field.dat.data)
+
+    g = params.g
+
+    assert np.allclose(diagnostic.field.dat.data, 0.5*g*H**2, atol=0.0), \
+        'The sw available potential energy diagnostic does not seem to be correct'