The UK government has set a target for Great British Energy to make returns on its commercial activities by 2030 and to have a plan in place for becoming self-financing by that date.
Ministers said profits will be reinvested in clean energy projects to provide permanent protection for billpayers and accelerate deployment of homegrown power.
The strategic objectives, agreed with devolved administrations, were outlined by energy secretary Ed Miliband (pictured) as he set out his vision for the state-owned company at the heart of the clean power mission.
Miliband said: “It is time to make things and own things in Britain again. That’s why we have set up Great British Energy to be a new national champion and allow us to reap the benefits of Britain’s abundant natural resources.”
He added: “Great British Energy will place working people, communities and British industries at its core, turbocharging clean energy across the country as part of our clean power mission.”
The government said the company will act as a developer, investor and owner of projects, working alongside private developers, devolved governments, local authorities and community groups.
It will also prioritise local and community involvement, increase public ownership in projects, and back domestic supply chains to deliver economic growth and skilled jobs.
Great British Energy is already investing around £200m in solar and renewable projects for schools, hospitals and public buildings, with panels now installed and starting to cut bills for services.
Chief executive Dan McGrail said: “Work is already underway at Great British Energy to deliver our strategic plan, and we welcome the Secretary of State’s recommendations. Most of the clean energy projects in the government’s industrial strategy will flow through Great British Energy, enabling us to be the green growth engine for the UK.”
He added: “We are going to invest £1bn in domestic supply chains, which I expect will unlock billions more in investment and create thousands of jobs. Along with our partners like the National Wealth Fund, the Crown Estate, Great British Energy-Nuclear and many more, we are primed to develop innovative ways to grow new renewable technologies, ensuring our energy is engineered in the UK.”
The company is due to publish its strategic plan within six months, setting out how it will meet the government’s objectives.
Officials highlighted three key focus areas: investment in established and emerging technologies needed for Clean Power 2030, action to strengthen UK supply chains, and support for community and local energy under a new Local Power Plan.
Great British Energy was established under legislation passed in May and has already joined with government and the Crown Estate to invest £1bn in offshore wind supply chains.