At the Hutchinson Engineering site in the North West of England, Prime Minister Sir Keir Starmer launched the new Great British Energy (GB Energy) company, accompanied by the Secretary of State for Energy and Net Zero, Ed Miliband.
Summary of announcement
- The government introduced a new Bill to establish GB Energy, a UK-wide, publicly owned energy company aimed at creating jobs and generating returns for taxpayers. This move is seen as a step towards enhancing Britain’s energy security and reducing reliance on international energy sources.
- The PM criticised the former Conservative government’s energy policies, highlighting their decision to cut clean energy projects and ban onshore wind, which he claims, has led to increased energy costs and vulnerability, particularly during international crises like the Russian invasion of Ukraine.
- Emphasising the urgency of the clean energy transition, the Prime Minister reiterated the lifting of the ban on offshore wind and outlined the government’s mission to make the UK a leader in clean technology. He stressed the importance of a just transition that benefits all regions, particularly Scotland, where GB Energy’s headquarters will be located.
- Juergen Maier, former CEO of Siemens UK, will chair GB Energy. The company will partner with the Crown Estate to leverage expertise and resources, aiming to build supply chains and create jobs, underscoring the government’s pro-worker and pro-wealth creation stance.
- The PM conveyed a sense of urgency, stating that the work towards clean energy must begin immediately, while also recognising that significant change will take time. He positioned today’s launch as the first step towards achieving clean energy by 2030 and accelerating the path to net zero, with the ultimate goal of benefiting future generations.
Coverage of the announcement
Ed Miliband began by highlighting the impact of Britain’s energy insecurity on every family, noting that ‘energy bills are expected to rise again in the autumn.’ He emphasised that the solution lies in British-based renewable energy, which he described as ‘the cheapest and fastest way’ to achieve energy security. He announced the introduction of the GB Energy Bill in Parliament, which aims to establish a UK-wide, publicly owned energy company. Milliband stated that the company will act as both an owner and investor, aiming to ‘create good jobs and generate a return for the taxpayer,’ with its headquarters based in Scotland. The initiative also includes scaling up community energy projects and ensuring a just transition, which Miliband said requires ‘boldness and imagination to deliver.’
Kier Starmer underscored the urgency of moving away from reliance on international energy sources, particularly in light of the Russian invasion of Ukraine, which left the UK more vulnerable. ‘As long as we remain reliant on international dictators, it will be working people who are hit hardest,’ he said. Emphasising the opportunities ahead, he declared, ‘There is a massive prize in our reach and the race is on to get there.’ He outlined the government’s commitment to winning the race for clean energy, mentioning that in the first week of his government, they lifted the ban on offshore wind and referenced that last week, they introduced a Bill to create GB Energy, which he described as ‘publicly owned, making money for the taxpayer,’ and aimed at ‘taking Putin’s boot off our throat, once and for all.’
Starmer announced that Juergen Maier, former CEO of Siemens UK, will chair GB Energy. He highlighted the partnership with the Crown Estate, stating, ‘The expertise of the Crown Estate together with the market can exploit capabilities that only the government has.’ He reaffirmed the government’s determination to deliver for the British people, describing the government as ‘pro worker, pro wealth creation,’ with the goal of making the UK a world leader in clean technology. He stressed the importance of this mission for future generations and committed to working with Scottish counterparts to lead the clean energy revolution. The PM went on to say change on that scale will not happen overnight, but referenced today as having taken the first step, calling it ‘a down payment on our mission for clean energy by 2030 and accelerating to net zero.’ He concluded with a hopeful vision: ‘The race has started, the work has begun, and the planet and the people of this country will reap the benefits for decades to come.’
What does it all mean?
This initiative will be welcomed by many as a step towards doing more at home to reach net zero and clean energy use. However, it may also imply significant regulatory and market changes. The introduction of advanced technologies will need to be considered alongside the reforms already underway by the government around planning decisions.
The critique of the previous government’s energy policies highlights a strong commitment to reversing decisions that many believe have hindered the growth of the renewable sector. This could lead to the removal of barriers that have previously prevented onshore wind development and other clean energy projects, which potentially could lead to a significant influx of new projects, with some government ministers already hinting at those that have been stuck in the pipeline for some time. The timeline between the legislation taking effect and the actual implementation of these projects, including the creation of jobs and reductions in energy bills, will be closely scrutinised by both the public and members of the House of Commons.