Great British Energy

Great British Energy
Agency overview
Formed2024
JurisdictionUnited Kingdom
StatusProposed
HeadquartersAberdeen, Scotland, UK [1]
Minister responsible
Parent departmentDepartment for Energy Security and Net Zero
Websitewww.gov.uk/government/organisations/great-british-energy
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Great British Energy (shortened to GB Energy or GBE) is a planned British governmental investment body and publicly owned energy generation company that forms part of the Labour Party's plans for energy policy.[2][3][4][5] The proposed body would invest in renewable energy and own, manage and operate clean power projects. The Labour government intends to pass legislation in the form of a "Great British Energy Bill" [6] to enable the creation of the company.[7]

Origins

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The idea was created by the former Labour leader Ed Miliband as part of a wider platform of policies.[8] Prior to June 2024, Great British Energy had been floated by the Labour Party as being a proposal for the creation of an energy generating company, rather than an investment body.[9] As the minister responsible, Miliband later recommitted to the proposal of GBE as an energy generator, comparing the body to energy companies such as Ørsted and Statkraft.[10]

Great British Energy is headquartered in Aberdeen, Scotland.[2] A target has been set for GBE to be directly responsible for generating 8 GW of renewable power by 2030.[11] According to the Labour Party, some of the funding for GBE would be provided from additional taxation of the fossil fuel industry.[3]

Creation

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On 5 July 2024, Ed Miliband was newly appointed as Secretary of State for Energy Security and Net Zero and made his first formal announcement to civil servants, outlining his priorities to make the UK a clean energy superpower with the creation of GB Energy.[12]

The government initiated a plan to utilise the Crown Estate's British seabed for windfarms, aiming to power 20 million homes. This was the first major move by GB Energy, receiving £8.3bn in state funding to boost renewable energy. Ed Miliband asserted that the initiative would eventually lower household bills, although the Conservative Party criticised it as costly for families. The plan also included discussions with Scotland and Northern Ireland for similar projects. The government sought to attract £60bn in private investment, and to involve GB Energy in various renewable projects, including carbon capture and tidal energy.[13] GB Energy, was expected to establish its headquarters in Aberdeen. The company was also planning smaller offices in other parts of Scotland.[14]

The Labour Party says that as a result of GB Energy, 650,000 new jobs will be created.[15]

In July 2024, Jürgen Maier, former chief executive of Siemens UK, was appointed chair of GB Energy.[16] In October 2024, he said GBE had been promised £8.3 billion of investment capital over the next five years, for offshore wind, hydrogen power, carbon capture and nuclear power developments. GBE will begin by taking minority stakes in new projects.[17]

Reaction

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Both the Green Party and the UUP have voted for readings for the bill with the Labour Party.[18]

Opposition to the planned GB Energy has included the claim from the Conservative opposition that GB Energy will lead to higher energy bills, as part of a general opposition to state-ownership of the electricity markets, which led to the moniker "Giant Bills Energy".[19] The Conservatives and the DUP have both voted against readings for the bill.[18]

There has also been opposition to GB Energy as part of a general opposition to Net Zero emissions targets, as GB Energy aims to be powered entirely from renewable energy sources, such as wind and solar, according to the ruling Labour Party.[15][20]

See also

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References

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  1. ^ "GB Energy to be headquartered in Aberdeen". BBC News. 3 September 2024. Retrieved 5 September 2024.
  2. ^ a b "Switch on Great British Energy". Labour Party. Retrieved 1 June 2024.
  3. ^ a b "GB energy firm would secure future jobs, says Labour". BBC News. 30 May 2024. Retrieved 1 June 2024.
  4. ^ "King's Speech - Debate (4th Day)". TheyWorkForYou. Retrieved 1 June 2024.
  5. ^ Minio-Paluello, Mika; Markova, Anna (18 July 2024). "GB Energy: what did the King's Speech reveal about the government's plan?".
  6. ^ "King's Speech 2024: background briefing notes - Great British Energy Bill" (PDF). GOV.UK. 19 July 2024. Retrieved 19 July 2024.
  7. ^ "Labour promised a state-owned energy company. Can it work?". Politico. 29 May 2024. Retrieved 1 June 2024.
  8. ^ "Labour has launched its Great British Energy policy - do we need it?". Sky News. Retrieved 1 June 2024.
  9. ^ "Labour's GB Energy plan branded 'a sham' as they admit 'it's not an energy company'". The National. 31 May 2024. Retrieved 1 June 2024.
  10. ^ "Clean Energy Superpower Mission". Hansard. 18 July 2024.
  11. ^ Gatten, Emma (31 May 2024). "What is Great British Energy? Labour's flagship policy explained". The Daily Telegraph. ISSN 0307-1235. Retrieved 1 June 2024.
  12. ^ "Energy Secretary Ed Miliband sets out his priorities for the department". Gov.uk. 8 July 2024. Retrieved 10 July 2024.
  13. ^ Espiner, Tom; Jack, Simon (24 July 2024). "Labour to use Crown Estate land to boost wind energy". BBC News. Archived from the original on 25 July 2024. Retrieved 25 July 2024.
  14. ^ Delaney, James; Porter, David (3 September 2024). "GB Energy to be headquartered in Aberdeen". Retrieved 4 September 2024.
  15. ^ a b "Great British Energy". great-british-energy.org.uk. Retrieved 25 July 2024.
  16. ^ "New Great British Energy partnership launched to turbocharge energy independence". Department for Energy Security & Net Zero. 25 July 2024. Retrieved 16 October 2024 – via gov.uk.
  17. ^ Stacey, Kiran; Harvey, Fiona (16 October 2024). "GB Energy can become a major power generator, says its chief executive". The Guardian. Retrieved 16 October 2024.
  18. ^ a b "Great British Energy Bill: Second Reading - Commons' votes in Parliament - UK Parliament". UK Parliament.
  19. ^ "Giant Bills Energy" was a moniker used by the then ruling Conservative Party during the 2024 UK General Election, as part of Rishi Sunak's public opposition to the state-owned company.
  20. ^ Turver, David (25 July 2024). "Labour Launches GB Energy Bill". Eigen Values. Retrieved 25 July 2024.
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