UK Labour Government Launches Major Green Energy Plan
On Tuesday, Britain’s new Labour government introduced a significant green energy initiative, partnering with the royal family’s business arm to develop offshore wind farms. This multi-billion-pound project marks a pivotal step towards sustainable energy.
Prime Minister Keir Starmer is launching a public entity named Great British Energy to drive investments in domestic renewable energy as the UK aims to reduce its reliance on fossil fuels.
“There is a massive prize within our reach, and make no mistake the race is on to get there,” Starmer emphasized, highlighting his goal for Britain’s energy “independence.”
The government has committed £8.3 billion ($10 billion) over the next five years to achieve its climate change targets and decrease energy costs by lessening dependence on foreign oil and gas.
GB Energy will also seek private investments, starting with a partnership with the Crown Estate, the monarchy’s land and property company, aiming to attract £60 billion in private funds.
The Crown Estate, a major European property empire, owns significant portions of Britain’s seabed, ideal for offshore wind power projects. Their partnership with GB Energy is expected to lease enough offshore land to generate up to 30 gigawatts of new energy by 2030, powering nearly 20 million homes. Currently, the UK produces 14 gigawatts from offshore wind.
Aiming to Be a “Clean Energy Superpower”
The government will introduce legislation to establish GB Energy, fulfilling Labour’s election promise to make Britain a “clean energy superpower.” In power for the first time since 2010, Labour is dedicated to reaching net-zero carbon emissions by 2050 and decarbonizing the electricity grid by 2030, despite challenges in achieving this ambitious goal.
Starmer’s government has lifted a ban on new onshore wind farms in England, imposed by the Conservatives in 2015. A separate bill will expand the Crown Estate’s investment capabilities, allowing more borrowing for projects like offshore wind.
Additionally, the government plans to boost investment in sustainable aviation fuel plants. Last year, the Crown Estate’s profits more than doubled to a record £1.1 billion, largely due to offshore wind farms.
GB Energy will focus on leading projects, building supply chains, and investing in new technologies such as carbon capture, hydrogen, wave, and tidal energy. Public financing will come from windfall taxes on oil and gas companies.
With British energy bills soaring since Russia’s invasion of Ukraine, Labour argues that their net-zero plans will save households £300 annually. However, Conservative energy spokeswoman Claire Coutinho dismissed GB Energy as a “gimmick” that will ultimately increase costs for families.