The new Labour government has set out its founding steps for its new publicly owned energy company, GB Energy. The government argues that the threats of geopolitical instability and climate change require the same answers: investing in clean energy at speed and scale. It is for this reason that GB Energy is being set up state Labour. GB Energy will be headquartered in Scotland with the aim of investing in clean and home-grown energy through £8.3bn worth of funding. The central idea behind the policy according to Labour is to offer the UK the right to own and benefit from natural resources.
Case for GB Energy:
Labour argues that there are 5 distinct reasons for why GB Energy is required. These are:
- Clean Energy Superpower- Will help achieve Labour’s targets of decarbonised power by 2030.
- Ownership- Will help take advantage of the UK’s energy assets such as offshore wind and nuclear.
- Energy Independence- Will help avoid energy being priced and sold on international markets, to be controlled by other states.
- Job Creation- Will help boost the number of skilled jobs in the UK’s energy sector.
- Supporting Billpayers- Will help ensure that UK consumers reap the benefits of clean, secure and home-grown energy.
Structure of GB Energy:
GB Energy will be operationally independent and owned in its entirety by the Secretary of State for Energy Security and Net Zero (Ed Miliband). The company will be chaired by former Siemens UK managing director, Juergen Maier. The company will have its own independent fiduciary board rather than ministers to benefit from industry expertise, alongside this trade unions will also have a voice and representation on the board.
Role of GB Energy:
Labour argues GB Energy will perform 5 key functions. These are:
- Project Investment & Ownership- Will help develop projects through simply not just being an investment vehicle but being a publicly owned company that will take stakes in the projects it owns, manages and operates.
- Project Development- Will help develop projects such as the infrastructure for building renewables on the Crown Estate, with plans for 20-30GW of extra offshore wind to be developed by 2030.
- Local Power Plan- Will help roll out small and medium-sized projects within local communities to help generate energy to be used by them.
- Supply Chain- Will help play a role in developing sustainable UK energy supply chains and developing jobs in these industries.
- Great British Nuclear- Will help support work alongside Great British Nuclear to develop the UK’s nuclear capabilities.
Next Steps:
Labour have promised to set out the next steps for GB Energy and create a framework that will help engage with the private sector over the coming months. An announcement on the specific location of GB Energy in Scotland will also be announced.
The full founding statement document can be found at the following link: Great British Energy Founding Statement (publishing.service.gov.uk)