Great British Energy will allow Scotland to “lead the clean energy revolution”, Sir Keir Starmer said as further details about the publicly-owned company are set to be announced.
The legislation to create GB Energy will be introduced at Westminster on Thursday, with ministers saying it will secure Scottish industries like offshore wind and hydrogen.
Labour has vowed to create a publicly-owned energy generation company headquartered in Scotland to drive the Government’s goal of making the UK a “clean energy superpower”.
The exact location of the HQ will be revealed “soon”, the Government said.
UK ministers have been in talks with the Scottish Government and Crown Estate Scotland on how GB Energy can help development and investment in Scotland.
They say a new partnership with the Crown Estate could leverage private investment of £60 billion into the UK’s energy infrastructure.
Thursday’s legislation will set out GB Energy’s objectives and ensure it has access to funding. Capitalisation of £8.3 billion has been promised in the current parliamentary session.
The Government says it will have five key functions, including project investment and building up supply chains.
GB Energy
Ahead of the Bill’s introduction, the Prime Minister said: “Scotland will lead the clean energy revolution in the United Kingdom, fuelled by the skills, knowledge, and talented workforce the energy sector here contains.
“That’s why we’re headquartering GB Energy in Scotland, and today’s announcement takes us a step closer to achieving that.
© Supplied by Port of Cromarty Firth“Clean energy by 2030, cheaper bills, and good jobs across the country.”
Scottish Secretary Ian Murray said: “Scotland is the powerhouse of our clean energy mission and Great British Energy will drive forward investment in home-grown energy production and provide benefits to bill payers.
“Greater energy security through Great British Energy will mean less reliance on overseas fossil fuels, boosting our economy and creating more jobs.
“We are also focused on cleaner energy and getting renewables projects online quicker, which is key for our journey to net zero.
“I am pleased we are working closely with the Scottish Government to ensure these benefits are felt by people right across the UK.”
Industry response
Trade body Offshore Energies UK (OEUK) welcomed the tie up between the Crown Estate and the much-anticipated GB Energy.
It highlighted that the new government now needs partnerships with industry to put plans into action and kickstart economic growth. It also reiterated calls for a “fiscal climate that promotes investment” in the offshore energy sector.
The body has long campaigned against Labour plans to extend and increase the Energy Profits Levy and scrap tax incentives.
The Office for Budgetary Responsibility says net zero will cost the UK 1.4 trillion, with the lion’s share coming from business.
© Supplied by OEUKDavid Whitehouse chief executive of OEUK : “We welcome the commitment to create GB Energy in partnership with sectors which are critical to the future success of the UK economy.
“Our members share the ambition to accelerate renewable energy projects and create economic value. GB Energy must be a positive step to bring confidence to the market, unlock further private investment and grow the UK’s supply chain.
“We continue to need a fiscal climate that promotes investment in the offshore energy sector to assure a managed transition to clean energy which does not depend on increased imports.
“We’re committed to a partnership between government, industry and our skilled people that is focused on a homegrown energy transition, supporting jobs, growing our world class supply chain and delivering domestic energy security.”
Energy UK chief executive Emma Pinchbeck said GB Energy can play a “vital role” in making the government’s clean energy ambitions a reality.
“The expansion of clean, secure, homegrown energy and the economic growth this will bring can deliver huge benefits to the whole population,” Pinchbeck said.
“However, the best way to make sure that the public benefits from GB Energy and that the economy grows, is to complement – rather than duplicate – the investment, expertise and experience of the private sector, whose track record of delivery has made the UK a world leader in offshore clean energy.
“Success depends on private investment being crowded in rather than crowded out – and industry is looking forward to working in partnership with government to make sure this happens.”
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