Great British Energy partnership with The Crown Estate
The Prime Minister and Energy Secretary have announced a new partnership between Great British Energy and The Crown Estate, which they say has the potential to leverage up to £60 billion of private investment into the UK’s drive for energy independence.
The government say Great British Energy the government “will be owned by the British people, for the British people”, and will be backed with £8.3 billion of new money over this Parliament to own and invest in clean power projects in regions across the UK.
Great British Energy’s first major partnership will be between two national institutions for the benefit of the British people. The Crown Estate, which has a £16 billion portfolio of land and seabed, operates independently and returns its profits to the government, brings long-established expertise to the partnership, and new investment and borrowing powers recently announced by government.
The Crown Estate estimates this partnership will lead to up to 20-30GW of new offshore wind developments reaching seabed lease stage by 2030, enough power for the equivalent of almost 20 million homes.
As part of this partnership the public sector will take on a new role undertaking additional early development work for offshore wind projects, ensuring that future offshore wind development has lower risk for developers and enabling projects to build out faster after leasing and crowding in private sector investment. It will also help boost new technologies such as carbon capture and storage, hydrogen, wave and tidal energy.
The Prime Minister has confirmed that Great British Energy will be headquartered in Scotland and will back energy generation projects in the UK. The government is already legislating to give both Great British Energy and The Crown Estate the powers they need to rapidly deliver, with two Bills being introduced into Parliament.
The Energy Secretary confirmed that Juergen Maier, former chief executive of Siemens UK, will be the chair of Great British Energy.
Prime Minister Keir Starmer said:
“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 £60 billion in investment into the sector, turbocharging our country toward energy security, the next generation of skilled jobs, and lowering bills for families and business.”
Energy Security and Net Zero Secretary Ed Miliband said:
“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.”
Chief Executive of the Crown Estate Dan Labbad said:
“The Crown Estate exists to serve the national interest, including stewarding our natural resources to deliver a decarbonised, energy secure and sustainable future.
“With new powers and by partnering with government, we can drive greater investment into this future for our country, and with it support nature recovery and job creation.”
Juergen Maier CBE, chair of Great British Energy said:
“Great British Energy will be a publicly-owned national clean energy champion, ensuring British people reap the benefits of clean, secure, home-grown energy.
“I’m excited to lead this company and work with the private sector and communities to rapidly expand skilled jobs and investment across the country.”
The government say Great British Energy will have five key functions
- Project development - leading projects through development stages to speed up their delivery, whilst capturing more value for the British public
- Project investment – investing in energy projects alongside the private sector, helping get them off the ground
- Local Power Plan – supporting local energy generation projects through working with local authorities, combined authorities and communities
- Supply chains – building supply chains across the UK, boosting energy independence and creating jobs
- Great British Nuclear – exploring how Great British Energy and Great British Nuclear will work together, including considering how Great British Nuclear functions will fit with Great British Energy
The Great British Energy Bill, which is being introduced to the House of Commons will support the creation of the new publicly owned company by setting out its objectives and ensuring it has access to necessary finances. The Secretary of State will also have the ability to set Great British Energy’s strategic priorities to ensure it remains focussed on the government’s aim to accelerate the delivery of homegrown clean energy power in the UK.
The Crown Estate Bill will remove restrictions on its activities so it can, for example, invest in digital technologies that will further enhance its award-winning spatial mapping of the seabed. The Bill will also expand The Crown Estate’s investment powers and grant borrowing capabilities, unlocking investment in public infrastructure.
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