Britain's new state-owned energy company will 'drive down bills,' says Starmer
The Prime Minister says the partnership between Great British Energy and the Crown Estate will 'drive up to £60 billion in investment into the sector', as ITV News political correspondent Shehab Khan reports
Prime Minister Keir Starmer says Britain's new state-owned energy company Great British Energy will “drive down bills,” as the government partners with the Royal's Crown Estate to speed up the the building of offshore wind farms.
The Crown Estate owns most of Britain’s seabed, stretching up to 12 nautical miles from the mainland, and leases parts of it to wind farm operators.
Starmer said GB Energy will provide the UK with "energy independence," adding: "This will drive down bills, it gives us energy independence because the UK currently relies on international markets which is why the energy prices have faced a harder hit than other countries."
He said the money the Government is putting into GB energy is intended to be a “catalyst” for private investment. “It will take time for this to develop it will take time before were able to get the benefits of clean power but that’s why were moving at pace."
The Labour Government said on Thursday that GB Energy will help develop future offshore wind projects as part of a push to speed up the UK's transition to renewable energy.
It is also planned to reduce the UK's reliance on foreign imported energy by generating more of its own electricity.
The Crown Estate estimates the partnership will lead to up to 20-30 gigawatts of new offshore wind developments being leased by 2030, enough to power almost 20 million homes.
At a speech in Runcorn, Cheshire, Starmer said the UK has "paid the price” for the Tories’ negligence on energy which left the UK more vulnerable than other countries when Russia invaded Ukraine.
"When Russia invaded Ukraine, we were left more exposed than other countries. And that meant (Vladimir) Putin pushed our bills up," he said. “Every family and every business has felt the impact of that. We’ve lost a decade of opportunity, missed chances to boost our energy security to cut bills and create good jobs.” “People up and down the country have literally paid the price of that short sightedness. And we should be in no doubt. For as long as we remain reliant on foreign dictators for fossil fuels, this country will be exposed to future energy shocks like the one that we’ve just had. “And as usual, it will be working people are hit hardest in this crisis.
Ministers provided fresh details on what GB Energy will do with its £8.3 billion of funding over the next five years, as the GB bill will be introduced to Parliament on Thursday.
The company is set to lead energy projects through development stages to speed up the process, before returning them to private ownership but maintaining a stake.
However, it could become the operator of such projects over time. Leading the development of green power projects will come alongside GB Energy’s previously announced role of acting as a co-investor on schemes with private sector firms. Officials will also look at how GB Energy could join forces with Great British Nuclear, a public body, which helps bring forward new nuclear energy projects and support local energy generation projects through partnerships with local councils.
Prime Minister Keir Starmer said: “This innovative partnership between Great British Energy and the Crown Estate is an important step toward our mission for clean energy by 2030, and bringing down energy bills for good. “This agreement will drive up to £60 billion in investment into the sector, turbocharging our country toward energy security, the next generation of skilled jobs, and lowering bills for families and business.” Energy Secretary Ed Miliband said: “Great British Energy comes from a simple idea – that the British people should own and benefit from our natural resources. “The agreement with the Crown Estate will lead to more investment, cleaner power, more energy security, and is a statement of intent that it will be a permanent and transformative institution for our country.”
The state-owned company will also allow Scotland to “lead the clean energy revolution," the Prime Minister said.
Ministers have discussed with the Scottish Government and Crown Estate Scotland how GB Energy can help development and investment in Scotland.
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The Prime Minister said: “Scotland will lead the clean energy revolution in the United Kingdom, fuelled by the skills, knowledge, and the 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." Scottish Secretary Ian Murray said: “Scotland is the powerhouse of our clean energy mission and Great British Energy will drive forward investment in home-grown energy production and provide benefits to billpayers. “Greater energy security through Great British Energy will mean less reliance on overseas fossil fuels, boosting our economy and creating more jobs. “I am pleased we are working closely with the Scottish Government to ensure these benefits are felt by people right across the UK.”
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