As the UK pushes forward in its goals to become a clean energy superpower, Great British Energy emerges with the potential to be a key player in this transformation. Announced recently by the Prime Minister and Secretary of State for Energy Security and Net Zero, this publicly owned energy company is set to revolutionise the energy landscape in the UK.

Read on for an in-depth look at what GB Energy is, its objectives, and how it aligns with the broader goals of the UK’s energy policy.

What is Great British Energy?

It is a newly established, publicly owned energy company designed to accelerate the deployment of clean energy, enhance energy independence, create jobs and ensure that the UK taxpayer benefits from clean, secure energy. By learning from successful models in other European countries, Great British Energy aims to become a domestic champion in the energy transition.

Key highlights from the government’s Great British Energy founding statement include:
• Great British Energy (GB Energy) will expedite the deployment of both new and mature technologies, as well as local energy projects, to support the government’s goal of decarbonising the energy system by 2030. This will ensure that the system can meet future demands as the economy further decarbonises.
• It will work closely with industry, local authorities, communities and other public sector organisations to spread skilled jobs across the country.
• With a capital injection of £8.3 billion over the current parliamentary term, GB Energy will be well-funded to meet its ambitious goals.
• It will be headquartered and managed from Scotland, positioning it strategically in the UK.

The case for Great British Energy

Ownership
We know that the UK boasts a variety of clean energy production assets, including offshore wind and nuclear energy. GB Energy will offer an extra pathway for building clean energy assets beyond foreign investment. The profits generated will be reinvested into new projects right here in the UK, benefiting the taxpayer and nurturing further clean energy investments.

Energy Independence
The UK’s reliance on imported fossil fuels poses economic and security risks. By increasing home-grown power generation through renewables, nuclear, hydrogen and CCUS, GB Energy aims to mitigate exposure to volatile international markets. Domestically produced clean energy is not subject to international pricing and control.

Job Creation
The clean energy sector is set to be a significant driver of employment in the UK. GB Energy will boost the number of skilled jobs through:
• Project investment and ownership – both government and private sector efforts are needed to unlock the necessary capital. GB Energy will generate publicly owned revenue by investing in and owning clean power generation assets, particularly in emerging technologies like CCUS.
• Project development – GB Energy will support the development of many clean energy technologies. This includes a newly announced partnership with the Crown Estate, which manages a portfolio of real estate and seabed assets, playing a crucial role in the offshore wind and renewables sectors. GB Energy will also work closely with devolved nations to support development activities, from land assessments and environmental surveys, to securing planning consent and grid connections.
• Local power plan – GB Energy will put local authorities and communities at the front of restructuring the energy economy by partnering with local combined authorities and community energy groups to develop up to 8 GW of cheaper, cleaner power, ensuring that the investment flows back into local communities and creates thousands of skilled jobs.
• Supply chain – collaborating with industry, GB Energy will accelerate key energy projects and support the transition to an affordable, decarbonised system by 2030, utilising domestic manufacturing and supply chains.

Looking to the future

By leveraging significant investment, utilising collaboration across various sectors, and focusing on energy independence and job creation, GB energy is poised to play a crucial role in meeting the UK’s ambitious net zero goals.

Jane Gaston, Board Member of Net Zero North West commented:

“Net Zero North West has long championed the idea that achieving net zero is less about technological breakthroughs, and more about the right policies and funding.

“Without a clear policy framework, investors have been understandably cautious, particularly when compared to other countries. The establishment of GB Energy is a significant step forward, signalling a clear commitment from UK Government to this sector.

“Coupled with recent announcements on planning, skills, and grid infrastructure, we’re starting to see the conditions necessary to unlock substantial private sector investment.

“This is crucial for our region to transition to a net zero economy, creating jobs, driving economic growth, and bringing us closer to our goal of becoming the UK’s first low carbon industrial cluster by 2030, and the world’s first net zero industrial cluster by 2040.”

This initiative aligns with the goals of the Net Zero North West Cluster Plan, which identifies a pipeline of projects across renewables, carbon capture, hydrogen and nuclear that could drastically reduce industrial CO2 emissions and create substantial economic opportunities.

For more information on the broader goals and initiatives that will drive the North West towards industrial decarbonisation, read our manifesto, here.