The creation of a new state-owned Great British Energy has been included in the UK Government’s legislative agenda for the next year.
King Charles III confirmed the move while setting out the priorities of the country’s new Labour administration at the State Opening of Parliament in London today (17 July).
The monarch told a packed House of Lords “my Government recognises the urgency of global climate change” and ministers are “committed to a clean energy transition” that will lower consumer bills over time.
He said the new public body – which featured highly in Labour’s pre-election manifesto and is backed by a new National Wealth Fund – will be headquartered in Scotland and will “accelerate investment in renewable energy including offshore wind”.
Elsewhere in the King’s Speech was a Government pledge to “get Britain building again” supported by accelerated grid connections, simplified consent for major infrastructure and other wide-ranging planning reforms.
A Bill has also been proposed to increase the borrowing and investment powers of the Crown Estate for activities including seabed leasing.
Aquaterra Energy CEO George Morrison said: “The £7bn investment in GB Energy is a pivotal step toward reinforcing the UK’s leadership in the energy transition. With Labour’s manifesto commitments to quadrupling offshore wind capacity by 2030, earmarking £1bn for carbon capture and storage and £500m for green hydrogen, we can advance crucial sectors.
“Sustained investment and an innovative supply chain will be essential in delivering these projects at the required pace, ensuring a sustainable energy future and unlocking the economic benefits of the energy transition in the UK.”
Britain Remade CEO Sam Richards added: “The only way we are going to see economic growth is if we make it significantly easier and quicker to build energy efficient homes, powered by abundant domestic clean energy, that Britain desperately needs.
“With the Planning and Infrastructure Bill, Keir Starmer and Angela Rayner are turning campaign rhetoric into meaningful action by laying the foundations of a house building and infrastructure revolution.”
E3G Programme Lead Energy Transition Juliet Phillips responded: “The King’s Speech has kick-started a new legislative agenda on energy, renters’ rights and local powers – all areas that will be crucial to put the country back on track to meet climate and fuel poverty targets. It is vital that the government use new bills to support a just transition away from oil and gas, support vulnerable households to lower energy bills, and accelerate the clean power transition.”