Switching on GB Energy

29 July 2024 | Admin

One of Labour’s key pledges in its manifesto was brought a step closer this week, as the government put forward legislation to ‘switch on’ GB Energy, a publicly owned clean energy company. And, after lifting the ban on onshore windfarms in the UK earlier this month and approving three large-scale solar farms the weekend before last, Keir Starmer’s administration has now turned its attention to offshore wind farms. 

Labour’s flurry of announcements and action in the three weeks since it came to power has made clear their intent to make big changes to the UK’s energy sector.

Yesterday, Secretary of State for Energy Security and Net Zero Ed Miliband announced a partnership between GB Energy and the Crown Estate to boost offshore wind farm development. The partnership will see the Crown Estate lease seabed for these developments, which the government believes will drive up to £60bn of private investment. In energy terms, the partnership believes there could be between 20-30GW new capacity from the developments.

Labour says that “the old government had targets without delivery”; so does this week’s announcement show the new government is taking its own targets – which include 60GW capacity of offshore wind – seriously?

Industry reaction to the announcement has been broadly positive, with the Institute for Government saying that the preparation Labour did in opposition is “paying off”, making it easier for private offshore wind developers to get on board on the road to net zero. Octopus Energy said the move could lead to cheaper energy bills, while think tank Green Alliance said the government’s readiness for its partnerships was a positive development.

But Labour’s vision for strong national energy security and ultimately lower energy bills for households is undermined by some hurdles. The UK Sustainable Investment and Finance Association warned that any offshore wind farms would need additional infrastructure to connect energy to the national grid. 

RenewableUK’s Chief Executive Dan McGrail also called for GB Energy to make sure it plays a “positive role” in supporting wind farms, since excessive state involvement might slow down the already lengthy process of wind farms being planned, approved and in operation. 

In response to the latest plans, Shadow Energy Security Claire Coutinho has said GB Energy is “nothing but a gimmick that will end up costing families, not cutting bills”. As it stands, however, industry responses seem receptive to the new government’s enthusiasm – shown by its speed and preparedness – for a vibrant offshore wind sector.