The government has announced the creation Great British Energy, a new company at the heart of the mission to make Britain a clean energy superpower. (1)

The new company, owned by the British people, was announced jointly by the Prime Minister Keir Starmer and Energy Secretary Ed Miliband and is backed with £8.3 billion to own and invest in clean power projects across the UK. (2)

Great British Energy will be funded by a windfall tax on the large oil and gas companies. (3)

The initiative also creates  an “unprecedented partnership” between Great British Energy and The Crown Estate, with the potential to leverage up to £60 billion of private investment into the UK’s drive for energy independence. (4)

The government advises that the partnership would boost Britain’s energy independence by investing in homegrown power, and with accompanying reforms to policy, cut the time it takes to get offshore wind projects operating and delivering power to homes by up to half. (5)

Great British Energy will have 5 key functions:

• Project development - leading projects through development stages to speed up their delivery, whilst capturing more value for the British public 

• Project investment – investing in energy projects alongside the private sector, helping get them off the ground 

• Local Power Plan – supporting local energy generation projects through working with local authorities, combined authorities and communities 

• Supply chains – building supply chains across the UK, boosting energy independence and creating jobs 

• Great British Nuclear – exploring how Great British Energy and Great British Nuclear will work together, including considering how Great British Nuclear functions will fit with Great British Energy. (6)

Great British Energy will have headquarters in Scotland and all profits from energy generation projects will be publicly owned. The UK government is also in discussions with the Scottish government and Crown Estate Scotland on how the company could support new development and investment within Scotland. (7)

The partnership should benefit from the Crown Estate’s £16 billion portfolio of land and seabed, as well as long-established expertise, along with new investment and borrowing powers recently announced by government. The Crown Estate operates independently and returns its profits to the government. (8)

Great British Energy will contribute essential strategic industrial policy that the state can provide, as well as its own ability to invest, according to the government. The Crown Estate estimates this partnership might lead to up to 20-30GW of new offshore wind developments reaching “seabed lease stage” by 2030, which is enough power for the equivalent of almost 20 million homes. (9)

The government introduced two Bills in Parliament on the day of the announcement on July 25th and confirmed that Juergen Maier, former CEO of Siemens UK, would be the company Chair. (10)

Keir Starmer said: “My government is laser focused on delivering change, to make people better off.  This innovative partnership between Great British Energy and the Crown Estate is an important step toward our mission for clean energy by 2030, and bringing down energy bills for good. This agreement will drive up to £60 billion in investment into the sector, turbocharging our country toward energy security, the next generation of skilled jobs, and lowering bills for families and business.” (11)

Ed Miliband said: ”Great British Energy comes from a simple idea - that the British people should own and benefit from our natural resources. Investing in clean power is the route to end the UK’s energy insecurity, and Great British Energy will be essential in this mission. The agreement with The Crown Estate will lead to more investment, cleaner power, more energy security, and is a statement of intent that it will be a permanent and transformative institution for our country. (12)

“Great British Energy will create thousands of good jobs, with good wages, across the country. We will seize the opportunities of the clean energy transition and ensure the British people capture those benefits. In doing so, we will show how 21st century modern public ownership can help deliver a dynamic state working in partnership with industry, workers, and unions.” (13)

Juergen Maier said: “Great British Energy will be a publicly-owned national clean energy champion, ensuring British people reap the benefits of clean, secure, home-grown energy. I’m excited to lead this company and work with the private sector and communities to rapidly expand skilled jobs and investment across the country.” (14)

The creation of the new national energy company comes swiftly after the Energy Secretary scrapped the ban on onshore wind (15) and approved three new solar farms. (16)

Sources

1 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence (© Crown copyright. OGL)

2 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

3 GOV.UK (accessed August 2024) What is Great British Energy and what does it mean for me?  https://www.gov.uk/government/news/what-is-great-british-energy-and-what-does-it-mean-for-me (© Crown copyright. OGL)

4 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

5 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

6 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

7 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

8 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

9 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

10 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

11 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

12 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

13 GOV.UK (accessed August 2024) Great British Energy founding statement https://www.gov.uk/government/publications/introducing-great-british-energy/great-british-energy-founding-statement (© Crown copyright. OGL)

14 GOV.UK (Accessed August 2024) New Great British Energy partnership launched to turbocharge energy independence  https://www.gov.uk/government/news/new-great-british-energy-partnership-launched-to-turbocharge-energy-independence

15 edie (accessed August 2024) UK Government lifts planning blockers to onshore wind farms https://www.edie.net/uk-government-lifts-planning-blockers-to-onshore-wind-farms/

16 Open Access Government (accessed August 2024) 406,994 homes powered greenly: UK government approves three new solar farms https://www.openaccessgovernment.org/406994-homes-powered-greenly-uk-government-approves-three-new-solar-farms/179923/