The UK government has made clear its commitment to delivering clean power owned by UK taxpayers, but can it fulfill its promise to consumers? In light of the recent interventions made within the first three weeks of their term, it is difficult to criticize Labour’s dedication to clean energy by 2030. Energy and Net Zero Secretary Ed Miliband has already taken steps to remove bans on onshore wind power, streamline planning processes for projects, and approve two solar farms that were previously held back by the previous administration.
Now, the launch of Great British Energy (GBE) further demonstrates the government’s intentions and is one of Labour’s five key missions for this parliamentary term. It is also a crucial component of the government’s green energy objectives. Latest political news reveals that Labour leader Keir Starmer has accused the Tories of leaving the UK “exposed.”
According to government officials, GBE will have two primary roles: as a project developer and as a co-investor in new low carbon energy projects. This will ensure that the government follows through on its promise to create a taxpayer-owned energy company that will provide affordable electricity in the UK. GBE will work in partnership with the Crown Estate, which is an independent business owned by the monarch and leases out parcels of the seabed to offshore wind developers. This partnership will facilitate the identification and approval of suitable sites for offshore wind projects, ensuring they are strategically located to meet power demands and grid requirements. GBE will then lease these parcels to developers, with pre-approved planning permission, in order to significantly reduce the typically lengthy process of getting large offshore wind projects operational. The government claims this could cut the process in half, from ten or 15 years to just five.
By leasing more seabed and investing in new wind projects, GBE has the potential to generate revenue and, through the development of local and low carbon energy, provide savings for customers by reducing their reliance on expensive imported gas. However, there is still much work to be done. In order to manage the variable electricity output from wind and solar projects, the UK needs a complete overhaul of its electricity grid, as well as solutions for energy storage during periods of low wind or sun, such as batteries, hydropower, or hydrogen storage. Additionally, the government must implement new methods of pricing electricity in order to ensure that consumers see the benefits of these developments. Through GBE, a “mission control” will be established to coordinate these efforts, along with a Warm Homes Plan, to ensure that all necessary components are in place to achieve the government’s goals.
If all goes according to plan, there is no doubt that GBE has the potential to deliver a green power revolution in the UK. However, the question remains whether it can do so in time to fulfill its campaign promise of “saving families hundreds of pounds on their bills, not just in the short term, but for good.” It is a challenging task. While the partnership with the Crown Estate may expedite new projects by five years, the grid overhaul is still ongoing and only about half of the 85 gigawatts of clean electricity needed to meet the government’s 2030 target is currently in the works.
Further information from Sky News reveals that GBE may not even formally exist until an act of parliament is passed and a chief executive and staff are appointed. Additionally, with a budget of only £8.3 billion over the next five years, GBE will only be able to afford minority stakes in new power projects. Despite this, polling suggests that GB Energy is a popular policy, even among non-Labour voters. Furthermore, achieving net zero emissions is a necessary requirement under the Climate Change Act. Even the previous administration was committed to similar targets, although they lacked a credible plan to achieve them. However, if the opposition chooses to criticize Labour’s investment in energy as a poor value for consumers, it may have consequences for Keir Starmer in the next election.
