On 25th July 2024, the UK Government released the founding statement for Great British Energy. A publicly-owned company designed to revolutionise the nation’s energy infrastructure. Here’s a detailed look at what this means and how it will impact you.
What Is Great British Energy?
Great British Energy is a publicly-owned, clean-energy company that will own, manage and operate clean power projects in the UK. With a CEO and an independent fiduciary board taking the lead, Great British Energy aims to leverage industry expertise to drive the nation’s clean energy initiatives. It is designed to drive clean energy across the nation, create jobs and make the most of the country’s potential for clean, home-grown energy. Their mission is to “make Britain a clean energy superpower by 2030“.
Why Do We Need It?
Net Zero Targets
The UK has committed to achieving net zero carbon emissions by 2050. This is a challenging goal that will require a significant overhaul of the country’s energy infrastructure. To meet the target of making Britain a clean energy superpower by 2030, substantial investment is needed. Much of this investment will come from private investors and will involve collaboration with industry, communities, local authorities, and other public sector entities to facilitate and speed up the implementation of clean energy solutions.
Ownership
Great British Energy is rooted in a simple idea – that the people of Britain should have the right to own and benefit from their natural resources. The UK currently possesses several clean energy production assets, including offshore wind and nuclear energy. Great British Energy aims to utilise these assets and reinvest the profits to further bolster the economy.
Energy Independence
The effects of the Russia-Ukraine war highlighted the UK’s vulnerability to volatile international markets. Energy bills skyrocketed and even years later they have still not fully recovered. This highlighted a weakness in the UK’s energy system. By developing a robust network of home-grown clean energy sources, Great British Energy aims to ensure energy security and independence from foreign influences. Great British Energy aims to accelerate the development of clean energy production across the UK to create a secure, home-grown, clean energy supply.
What will Great British Energy Do?
Great British Energy’s primary goal is to make Britain a clean energy superpower and to decarbonise the power sector by 2030. It also aims to create jobs and improve energy security to benefit local communities and individuals. But how will it do this?
Project Investment and Ownership
Great British Energy is committed to investing in clean power generation assets, to support the development of new technologies and pave the way for future energy generation. This investment will benefit less developed technologies such as floating offshore wind and carbon capture by accelerating progress in these areas. By retaining ownership, Great British Energy ensures that the profit generated from investments and shares will be redirected into new projects for the overall benefit of UK taxpayers, billpayers, and communities. Consistent investment from Great British Energy will also help instil confidence in investors from the private sector.
Project Development
Great British Energy will support development across clean energy technologies. The development work it carries out could cover a range of activities, from surveying land to securing planning consent. By doing this, Great British Energy eases the burden on private sector developers and allows them to focus on project construction. This will remove some of the obstacles they face and invigorate private sector investment to accelerate the growth of energy projects nationwide.
Partnership with the Crown Estate
Great British Energy will be collaborating with the Crown Estate. The Crown Estate owns and manages vast rural lands, seabeds, and foreshore areas. Therefore, any energy generation projects taking place in these areas must be approved by them. This partnership will focus on the sustainable development of these assets and maximising their renewable energy potential. For example, one of its initial projects will involve advancing new offshore wind developments, which could potentially deliver up to 20-30GW of additional offshore wind seabed leases to the market by 2030.
Local Power Plan
Great British Energy will support the delivery of the Local Power Plan. This will make sure that communities own and benefit from clean power projects. As an added bonus, this will also reduce strain on the transmission grid. Up to 8GW of cheaper cleaner power could be provided through the Local Power Plan – that’s enough to power 800 million LED bulbs! (Source) Additionally, this arrangement gives a voice to local authorities in the conversation about restructuring our energy economy.
“Great British Energy will work closely with industry, local authorities, communities and other public sector organisations to help accelerate Britain’s pathway to energy independence. That means installing thousands of clean power projects across the country, crowding in investment for next-generation technologies, and providing vital support to accelerate large-scale projects.
Ed Miliband, Secretary of State for Energy Security and Net Zero
What are the Next Steps?
The government has said that it aims to roll out this project quickly so that it can start acting soon. Over the next few months next few months they will:
- Announce the headquarters location in Scotland.
- Recruit the key roles in the organisation.
- Conduct a programme of stakeholder interaction to refine the policy approach.
Overall, it looks like we will be seeing some changes occurring in the clean energy space. Great British Energy has promised a range of actions, and it will be interesting to see how these are carried out as the company takes shape over the next few months and on into the future.
For more information, visit the Great British Energy founding statement.
