UK Government introduces GB Energy legislation

The legislation to set up Great British Energy has been tabled by the UK Government.

Headquartered in Scotland, the new publicly owned company will be backed by £8.3bn over the course of the parliament.

It will invest in projects and encourage private investment, lead on project development, and build supply chains across the UK.

Prime Minister Keir Starmer said it will help to achieve his government’s aim to decarbonise the UK’s energy system by 2030.

He added: “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.”

The precise location of the company has not yet been announced. There have been calls to base it in the north east, currently home to the oil and gas sector, while others have suggested a central belt location such as Grangemouth may be better.

GB Energy will partner with the Crown Estate to encourage private investment in energy infrastructure, including in the seabed.

Management of the Crown Estate in Scotland is devolved, but the UK Government has committed to working with Scottish ministers on how GB Energy will support development and investment north of the border.

Energy minister, and Rutherglen MP, Michael Shanks said: “For the first time the British people will own a stake in our energy future. Rather than paying the price for energy insecurity, they will be partners in our mission to reduce our reliance on fossil fuels.

“Headquartering the company in Scotland will make the most of the abundant existing expertise and skilled workforce, and ensure Scotland is at the heart of our plan to make the UK a world-leading clean energy superpower.”

The Great British Energy Bill will be introduced on Thursday morning to set up the new company. Its strategic priorities will be set by the energy secretary.