On 25 July 2024, the Department of Energy Security and Net Zero (DESNZ) introduced the Great British Energy Bill, and Prime Minister Keir Starmer announced the strategy for this new policy.
What is GB Energy?
Great British Energy (GB Energy) is one of the new UK government’s flagship policies: a state-owned company to increase renewable energy generation. By accelerating the transition from fossil fuels to clean energy, GB Energy aims to reduce the UK’s reliance on imported fossil fuels and enhance energy security.
How GB Energy will be formed:
GB Energy will be an independent entity owned by the Secretary of State for Energy Security and Net Zero, chaired by Juergen Maier, led by a CEO, and overseen by an independent fiduciary Board rather than Ministers. Trade unions will also have representation within GB Energy.
Strategic objectives:
The government is set to put £8.3 billion into the company over the next five years and hopes to mobilise a further £60 billion of private capital. GB Energy will invest in and own clean power generation assets, focusing on emerging technologies like floating offshore wind, solar, tidal, wave energy, battery storage, carbon capture and hydrogen development. GB energy plans to invest £3.3 billion in Local and Combined Authorities and Community Energy Groups to roll out small and medium-scale renewable energy projects (the Local Power Plan), as well as £5 billion for direct investments to accelerate larger projects.
In addition, GB energy will use the country’s surrounding seabed, owned by the Crown Estate to build offshore wind farms to deliver up to 20-30GW of extra offshore wind seabed leases to the market by 2030. Through this partnership, DESNZ hopes this will power 20 million homes across the country.
GB Energy plans to strengthen UK supply chains for clean energy production. It will work with the National Wealth Fund and UK Infrastructure Bank as well as various public sector entities to support domestic clean energy supply chains, boosting skilled jobs in the energy sector.
DESNZ are also exploring how GB Energy can collaborate with Great British Nuclear to support and advance the delivery of new nuclear projects, ensuring energy security and clean power.
Impact on Local Authorities:
GB Energy’s Local Power Plan aims to provide funding, support, and assistance to Local Authorities. By promoting local generation, GB Energy aims to increase the capabilities and capacity of Local Authorities and build a pipeline to creation of successful local projects. This strategy is encouraging for Local Authorities, allowing them to be stakeholders in local clean power projects.
Conclusion
Overall, the goal of GB Energy is to make Britain a “clean energy superpower” by reducing the UK’s dependence on imported oil and gas and fostering a more decentralised system with more local generation and ownership. GB Energy is determined that the investment of £8.3 billion will act as a catalyst for private sector investment, and over the next few months we will see how GB Energy will unfold.
