A new partnership between Great British Energy and The Crown Estate has the potential to leverage up to £60 billion of private investment into the UK’s drive for energy independence, the UK Government says.
Great British Energy will be at the heart of the UK Government’s mission to make Britain a clean energy superpower. The company will be backed with £8.3 billion of new money over this Parliament to own and invest in clean power projects in regions across the UK.
The Crown Estate, which has a £16 billion portfolio of land and seabed across Wales, England and Northern Ireland, operates independently and returns its profits to the Government, which said it brings long-established expertise to the partnership. The Government added that Great British Energy will bring the critical strategic industrial policy that the state can provide, as well as its own ability to invest.
The Crown Estate estimates this partnership will lead to up to 20-30GW of new offshore wind developments, including off the coast of Wales, reaching seabed lease stage by 2030, enough power for the equivalent of almost 20 million homes.
The announcement comes as Welsh Secretary Jo Stevens visits ABP Port Talbot to discuss how Welsh industry will be at the forefront of new investment in clean energy.
At the port, she is due to discuss Port Talbot’s involvement in plans to develop large-scale floating offshore wind in the Celtic Sea and opportunities to create high-quality employment in future industries like clean energy provision.
The Welsh Secretary is also visiting Tata Steel Port Talbot to continue discussions with steel unions about how the UK Government can support the workforce following Tata’s decision to build an electric arc furnace at the site.
Since becoming Welsh Secretary following the General Election, Ms Stevens has chaired the Tata Steel / Port Talbot Transition board for the first time and carried out a series of talks with Tata Steel, steel unions, members of the workforce and businesses in the local supply chain.
Welsh Secretary Jo Stevens said:
“We are quickly delivering on our pledge to set up Great British Energy and Wales can now be at the forefront of this investment – building floating offshore wind, bringing down bills and making the country energy secure.
“Wales has the resources and skills to be a powerhouse in cutting edge energy technologies and we will work alongside Welsh Government to create high-quality jobs in places like Port Talbot and boost the next generation of Welsh industry.”
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 Security and Net Zero Secretary Ed Miliband said:
“Great British Energy comes from a simple idea – that the British people should own and benefit from our natural resources. Investing in clean power is the route to end the UK’s energy insecurity, and Great British Energy will be essential in this mission.
“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.”
Chief Executive of the Crown Estate Dan Labbad said:
“The Crown Estate exists to serve the national interest, including stewarding our natural resources to deliver a decarbonised, energy secure and sustainable future.
“With new powers and by partnering with Government, we can drive greater investment into this future for our country, and with it support nature recovery and job creation.
Great British Energy will have five key functions:
- Project development – leading projects through development stages to speed up their delivery
- Project investment – investing in energy projects alongside the private sector, helping get them off the ground
- Local Power Plan – supporting local energy generation projects through working with local authorities, combined authorities and communities
- Supply chains – building supply chains across the UK, boosting energy independence and creating jobs
- Great British Nuclear – exploring how Great British Energy and Great British Nuclear will work together, including considering how Great British Nuclear functions will fit with Great British Energy
The Government said the partnership between GB Energy and the Crown Estate will boost Britain’s energy independence by investing in homegrown power, and with accompanying reforms to policy, cut the time it takes to get offshore wind projects operating and delivering power to homes by up to half.
This partnership will see the public sector taking on a new role undertaking additional early development work for offshore wind projects. The Government said this will ensure that future offshore wind development has lower risk for developers, enabling projects to build out faster after leasing and crowding in private sector investment. It will also help boost new technologies such as carbon capture and storage, hydrogen, wave and tidal energy.
The Crown Estate has already helped the UK to become a global leader in the offshore wind sector, and is currently running one of the world’s largest commercial scale floating wind leasing programmes in the Celtic Sea between Wales and Ireland. This partnership will accelerate that leadership even further.
The Great British Energy Bill, which is being introduced in the House of Commons, will support the creation of the new publicly owned company by setting out its objectives and ensuring it has access to necessary finances. The Secretary of State will also have the ability to set Great British Energy’s strategic priorities to ensure it remains focussed on the Government’s aim to accelerate the delivery of homegrown clean energy power in the UK.
The Crown Estate Bill will modernise The Crown Estate by removing outdated restrictions on its activities so it can, for example, invest in digital technologies that will further enhance its award-winning spatial mapping of the seabed. The Bill will also expand The Crown Estate’s investment powers and grant borrowing capabilities, unlocking significant investment in public infrastructure. This includes essential marine investment to help support the acceleration and growth of offshore wind capacity by 2030 alongside supporting the regeneration of urban centres, such as its most recent example of a new Life Science partnership in central Oxford and nature recovery across its portfolio. These reforms will secure the continued future success of the Crown Estate business and maximise the returns it generates for the public.