What actually is GB Energy?

                                   This post has been written by our Head of Partnerships, Declan Williams 

Many in the sustainability community were disappointed by how little the climate crisis was mentioned in the general election campaign. We’re now on the other side and no matter how you spin it, the Labour party won a national mandate to govern. Sir Kier Starmer is now our Prime Minster and sensible government is back (hopefully). 

We’re already seeing some positive signs including the removal of the pseudo-ban of on shore wind farms in the country. Another major policy promise that that did stand out from Labour’s manifesto was the promise to create Great British Energy. But what actually is it? 

Some have confused is as an energy company that we will all be customers of, squeezing out the private sector so we can only get our energy from this public owned company. This isn’t the case. 

So, what is Great British Energy? 

The aim is that Great British Energy will be a ‘publicly owned’ clean energy company. With the UK having an ambitious target (that we do have to tools to achieve) of 100% clean power by 2030, this newly created entity will utilise the private sector to invest heavily in our energy landscape. This will include wind, solar and hydropower as main priorities. 

Energy security is also a large part of the mandate. We have all felt the effects of a globalised energy system, beholden to geopolitical shocks. With the world becoming less stable, we risk further inflationary pressures on energy bills if further conflicts and political instability continue. The UK being able to generate 100% of its energy at home without having to rely on any other countries is sensible. 

How else will it benefit us? 

Jobs, jobs, jobs – all of this energy creation will create many well-paid, skills jobs across the country. This will contribute to economic growth as well which was a key pledge of the incoming Labour government during the campaign. 

On the path to net zero – energy supply and creation currently accounts for around 20% of the UK’s annual carbon emissions (gov.uk). Achieving net zero in this sector by 2030 will be a big step toward the UK achieving net zero across all sectors by 2050. As much of this reduction needs to come in the next 10 years. 

Is there a catch? 

The Chanellor, Rachel Reeves, has warned that there isn’t much money to go around and has bound herself and the government to tight fiscal rules. Public investment of £8.3 billion will initially come from a windfall tax on the profits of oil and gas companies. That, however, will not be enough. The rest of the investment will have to come from the private sector and this is a risk. Involving the private sector in publicly owned companies hasn’t always worked well. 

The potential for something truly transformative is there but will take political will and buy in from communities and businesses across the country. Lets hope it all works out as planned as the economic, environmental and social benefits cannot be scoffed at. 

The UK’s energy system will be discussed when we bring together industry leaders, policy makers, researchers, and ethusiats committed to the green energy revolution at Green Energy UK National Conference. It will be held in Manchester on Wednesday 26th February 2025. Click here to get find out different ways you can get involved.