- Great British Energy has given £300m funding for offshore wind supply chains
- It is also investing £200m in new solar power and renewable energy schemes for schools and hospitals
- Investment is part of the government’s goal to become a clean energy superpower
Legislation for the UK’s new publicly-owned Great British Energy (GB Energy) has passed through parliament and in what the government has described as a “major step forward” in its efforts to cut bills and make the UK a clean energy superpower.
The Great British Bill is the first piece of government legislation to be given the green light from all three devolved governments under this parliament, allowing the company to operate more effectively across the whole of the UK.
As part of the Plan for Change, GB Energy will invest in clean energy projects across the country, the purpose being to end the UK’s reliance on foreign imports.
Cutting energy bills was a key point of Prime Minister Sir Keir Starmer’s general election campaign in 2024, and launching GB Energy was one of the Labour Party’s biggest manifesto promises.
Kick starting clean energy innovation
According to the government, the goal is to speed up the delivery of energy projects, investing alongside the private sector to get new green technology up and running in alignment with the government’s Invest 2035: the UK’s modern industrial strategy. These projects include floating offshore wind and solar power to name a few.
Secretary of State for Energy and Climate Change, Ed Miliband, will soon outline GB Energy’s strategic priorities, including what technologies the company is focusing on and how public benefit from investment decisions should be considered.
Miliband said the purpose of GB Energy is to ensure that British people should “own and benefit from our own natural resources”.
“We are giving people a stake in clean energy and delivering profits for the British people,” he explained.
“As part of our Plan for Change, this will make us a clean energy superpower and help bring down energy bills for good.”
The government claims there is already evidence of the potential savings GB Energy can make. A hospital in Hull is saving hundreds of thousands of pounds per month using solar power, with the money consequently being reinvested into its services.
Following on from this success, GB Energy is investing £200m in funding for renewable energy schemes and new rooftop solar power for schools, hospitals and communities, which should in turn save hundreds of millions on energy bills.
Close to £8.5m of this fund was awarded to the NHS Humber Health Partnership which will deliver up to £14.2m in lifetime bills savings.
The company has also backed Scotland’s recently opened Community Energy Fund by £4m. The money, poured into local, community-led projects including onshore wind, rooftop solar and hydropower, will generate profits that can be reinvested into the community or reduce people’s energy bills.
People in Wales will benefit from £3m of GB Energy’s funding for local renewable projects.
GB Energy chair, Juergen Maier, said the passing of the legislation has provided “full backing to scale up the company, crowd in investment, and back clean energy projects across the country.”
“This investment is part of the Prime Minister’s drive to ensure that a clean energy future is built in Britain.”
Dhara Vyas, chief executive, Energy UK, said that GB Energy can play a “vital role” in supporting the government’s clean energy ambitions a reality by “attracting extra private sector investment, speeding up the delivery of projects and further supporting developers by having the necessary supply chain in place.”
Vyas claimed GB Energy will kickstart the development of newer technology while larger and more established sources like wind and solar continue to grow as well as supporting community projects – as it has already started to do.
“Now the bill has passed, the industry looks forward to hearing more about GB Energy’s strategic priorities and working with the government on these,” Vyas said.
“The expansion of clean, secure, homegrown energy and the economic growth this will bring can deliver huge benefits to the whole population.
“GB Energy will be most effective if it complements the work of the private sector whose investment, expertise and experience – and track record of delivery – has made the UK a world leader in areas like offshore wind.”
