The new Labour government intends to set up a publicly-owned investment body in the form of Great British Energy.

GB Energy may help usher in a new era for the UK energy sector and policies alike. However, how feasible is this and to what extent?

In this guide, we’ll look at what exactly Great British Energy is and what is in store for the investment body. We’ll also consider how things might unfold from here.

Note: GB Energy has yet to launch at the time of writing. However, their launch is expected within the coming months.

A New Chapter For British Energy

Labour plans to set up Great British Energy as an initiative designed to cut energy bills and establish thousands of clean energy projects.

Great British Energy, as proposed, will work on a range of clean power projects. They plan to do so by working with local authorities, energy companies and co-operatives.

These GB Energy projects will primarily come in the form of:

• Onshore Wind
• Solar Power
• Hydropower

Notably, an AlphaReal survey has suggested that renewable investments will surge in the coming years. These findings are well-timed for Labour’s ambitious clean energy goals.

Labour’s manifesto also highlights their intention to engage thoroughly with local communities.

This may come in the form of welcoming communities to propose their own projects. Labour also expressed how they will help local communities benefit from these projects. Per their election manifesto, they will do so by engaging with local leaders and devolved forms of government.

Great British Energy In Practice

To bring GB Energy to life, Labour plans to provide £8.3 billion in government funding in the foreseeable future.

Reportedly this funding will comprise:

• £3.3 billion allocated for local energy project grants
• £5 billion of capital value to allow key stakes in energy projects and companies

The £8.3 billion in funding will be raised through a combination of responsible borrowing via the Green Prosperity Plan and windfall taxation on oil/gas companies.

GB Energy will launch as part of Labour’s planned ‘Energy Independence Act’ likely within several months. Per Labour’s party manifesto, this act will serve the purpose of creating the framework needed for new climate and energy policies.

According to the GB Energy’s official website, their headquarters will be established in Scotland.

New Energy Secretary Ed Miliband is expected to play a key role in launching GB Energy with its creation being listed as one of his priorities in a July 8th open letter.

Key Targets of GB Energy

So what does Great British Energy intend to achieve? According to the GB Energy website, some of the primary GB Energy targets include:

• Creating 650,000 new and skilled jobs
• Scale up and advance conventional energy tech such as solar, wind and nuclear
• Develop many 8 gigawatt small- to medium-scale local community energy projects
• Invest in emerging tech (e.g. Hydrogen and tidal power)
• Lower household energy costs by £300 annually on average
• Help the UK achieve completely green electricity by 2030

All that said said, as with any fresh government initiative, only time will prove how successful GB Energy may or may not be.

What Else We Know So Far

Through GB Energy, Labour wants to quadruple the nation’s solar investments. This would play a major part in their ambitious target of clean/affordable energy by 2030.

According to the initiative’s official website, GB Energy will support workers based in Britain’s industrial centres.

Ultimately, Labour hopes for GB Energy to aid in transforming the UK’s energy sector by creating new infrastructure with mainstream and newer technologies.

Making GB Energy work in practice and as intended will be no easy feat given the scale of the transformation being proposed, both economically and practically.

The initiative has faced scrutiny from some publications with regard to its feasibility. Some have also criticised plans for GB Energy to support nuclear projects. In time, we will find out whether GB Energy can deliver as intended.