The UK’s new Labour government is set to present its ambitious bill to Parliament on Thursday, outlining the creation of a state-owned enterprise to invest in green energy, along with a partnership with a company affiliated with the royal family to accelerate offshore wind development.
This legislation will establish a public investment company called “Great British Energy,” endowed with £8.3 billion (9.9 billion euros) over five years. The company will own and invest in green energy projects.
Stimulating Private Investment and Reducing Energy Bills
According to the government, “GB Energy” will incentivize private investment in these projects, enabling the UK to lower energy bills, reduce reliance on foreign imports, and ultimately transition away from fossil fuels.
Simultaneously, the new Labour government will forge a partnership between GB Energy and the Crown Estate, the entity managing the vast land and sea assets of the British monarchy.
Leveraging Offshore Wind Potential
The Crown Estate’s portfolio includes a significant portion of the UK seabed, granting it the authority to issue permits for the construction of offshore wind farms in these areas.
“This agreement will generate up to £60 billion (71.5 billion euros) of investment in the sector, steering our country towards energy security, a new generation of skilled jobs, and reduced bills for families and businesses,” stated Prime Minister Keir Starmer in a press release.
Empowering the Crown Estate for Renewable Energy Investment
During the Queen’s Speech last week, the Labour government announced its intention to remove certain financial constraints on the Crown Estate, allowing it to borrow and invest in renewable energy projects.
The associated bill will also be presented to Parliament on Thursday. This measure could lead to the creation of an additional 20 to 30 gigawatts of offshore wind energy by 2030, enough to power the equivalent of approximately 20 million homes, according to the Crown Estate.
Crown Estate’s Financial Success
On Wednesday, a financial report revealed that the Crown Estate’s profits more than doubled last year, reaching a record £1.1 billion (1.3 billion euros), primarily due to the growth of offshore wind farms.
These revenues are paid into the public purse, in exchange for an annual allocation (or “Sovereign Grant”) that funds staff salaries, palace maintenance, official travel, and receptions for the royal family.