Labour powers ahead with plans to turn UK into ‘clean energy superpower’

The new Government also set out a Bill establishing a national wealth fund, which it says will be central to its mission to deliver growth and a greener economy.

A Bill to allow the Crown Estate to borrow money aims to boost the rollout of more offshore wind farms.

“Urgency”

The clean energy transition set out in the King’s Speech, which referred to the “urgency of the global climate challenge and the new job opportunities that can come from leading the development of the technologies of the future”, was welcomed by green energy leaders.

The Government said the national wealth fund will directly invest in sectors including ports, gigafactories, steel, carbon capture and green hydrogen, with £7.3 billion of capital aiming to crowd in a further £20 billion in private money.

The fund will deploy money through the UK Infrastructure Bank to allow investments to start immediately, and aims to simplify the UK’s “fragmented landscape of support for businesses and investors”, while generating a return for taxpayers.

The Great British Energy Bill provides for the capitalisation of £8.3 billion of new money over the course of this Parliament to accelerate investment in renewable energy such as offshore wind.

It establishes Great British Energy, based in Scotland, which will take a stake in green energy projects on behalf of the public, in partnership with private investors.

Energy security

Labour argues that decarbonising the power system will increase energy security by reducing the UK’s dependence on imported oil and gas, which will also reduce consumers’ exposure to volatile international prices.

But it faced criticism before its sweeping election victory for watering down its original plans to spend £28 billion a year on green measures, and experts have warned its bid to achieve 100% clean power by 2030 is a tough ask.

A Bill to modernise the Crown Estate also aims to speed up investment to help bring forward 20-30 gigawatts of new offshore wind licences by 2030, as part of the plans to drive clean energy.

The Crown Estate owns and manages the seabed around England and Wales, developing, preparing and leasing out plots of seabed for offshore wind and other developers.

The Bill will give the Crown Estate the power to borrow from the Exchequer, freeing up its large cash reserves to be invested in new projects to help accelerate the deployment of offshore wind, which needs to as much as quadruple by 2030 to decarbonise the power grid.

Ambition

Greg Jackson, founder of Octopus Energy, said: “The Government’s clean energy vision laid out in the King’s Speech is ambitious but can be achieved with rapid action and huge effort.

“Accompanied by market reform it could deliver some of Europe’s cheapest power and lower bills for UK households.

“We look forward to working with the new Government to ensure the UK becomes a clean energy superpower, creating jobs and growth here and taking a leading role in exporting our expertise and technology.”

Green industrialist and founder of Ecotricity Dale Vince said Great British Energy could create a “triple green whammy” for Britain.

“Green energy investment creates twice as many jobs and twice the economic growth that fossil fuel investment does – that’s two massive benefits to the country.

“Public ownership of these new green energy projects through Great British Energy will ensure the whole nation benefits from the profits of these new projects. That’s the triple benefit we can create,” he said.

But Conservative Environment Network director Sam Hall said: “GB Energy risks crowding out private capital, wasting taxpayers’ money, and duplicating existing government bodies.

“Market-based solutions – such as competitive auctions, private investment in the grid, and a liberalised planning regime – would get clean energy built at lower cost.”