Great British Energy has signed its first major partnership with The Crown Estate, which is looking to transform the UK energy sector.
Announced by UK Prime Minister Keir Starmer and Energy Security and Net Zero Secretary Ed Miliband, the collaboration between Great British Energy and The Crown Estate could generate up to £60bn of private investment into the industry.
Milliband explained: “Great British Energy comes from a simple idea – that the British people should own and benefit from our natural resources. Investing in clean power is the route to end the UK’s energy insecurity, and Great British Energy will be essential in this mission.
“The agreement with The Crown Estate will lead to more investment, cleaner power, more energy security, and is a statement of intent that it will be a permanent and transformative institution for our country.”
What is Great British Energy?
Great British Energy is a publicly owned clean-energy company established to make Britain a clean energy superpower.
Owned by the British people, it will manage and operate clean power projects, such as wind farms, across the country. It will be headquartered in Scotland and funded by a windfall tax on oil and gas giants.
Great British Energy will have five critical functions:
- Project Development: Accelerating project development to deliver faster and maximise public value
- Project Investment: Partnering with the private sector to fund and launch energy projects
- Local Power Plan: Collaborating with local and combined authorities and communities to support local energy initiatives
- Supply Chains: Developing UK supply chains to boost energy independence and job creation
- Great British Nuclear: Coordinating with Great British Nuclear to integrate its functions within Great British Energy
Great British Energy aims to reduce energy bills, enhance energy security, and create jobs by investing in the cheapest forms of electricity generation.
This initiative will also ensure that the benefits of the UK’s natural resources are enjoyed by its citizens rather than foreign entities.
Investing in clean domestic power will contribute to creating 650,000 jobs and fostering future industries, ultimately supporting the government’s mission for a sustainable and self-reliant energy future.
Additionally, it will promote energy efficiency through home insulation upgrades and support environmental conservation efforts.
First major partnership with The Crown Estate
Great British Energy is forming a significant partnership with The Crown Estate, which manages a £16bn land and seabed portfolio.
This collaboration aims to leverage The Crown Estate’s expertise and new investment powers with Great British Energy’s strategic industrial policy and investment capabilities.
Offshore wind development
The Crown Estate anticipates up to 30GW of new offshore wind projects by 2030, enough to power 20 million homes.
This partnership will enhance energy independence by accelerating offshore wind development and cutting project timelines by up to half.
The partnership will see the public sector engaging in early development work for offshore wind projects, reducing risks for developers and speeding up project completion.
This initiative will also promote new technologies such as carbon capture, hydrogen, wave, and tidal energy.
Legislative support
The government is introducing two bills to empower Great British Energy and The Crown Estate.
The Great British Energy Bill will establish objectives and financial access, while The Crown Estate Bill will modernise its operations and expand its investment and borrowing capabilities, enhancing its role in offshore wind and public infrastructure development.
The Prime Minister added: “My government is laser-focused on delivering change to make people better off.
“This innovative partnership between Great British Energy and the Crown Estate is an important step toward our mission for clean energy by 2030 and bringing down energy bills for good.
“This agreement will drive up to £60bn in investment into the sector, turbocharging our country toward energy security, the next generation of skilled jobs, and lowering bills for families and businesses.
“My mission-led government is rolling up our sleeves to deliver for Britain.”
