Labour plans to create a publicly owned energy firm with the help of the monarchy’s land and property business, the Crown Estate, in an effort to reduce the UK’s reliance on traditional fossil fuel markets. The move has been dubbed the GB Energy plan and involves £8.3 billion worth of investment centrally based in Scotland with initial funding partly generated through a North Sea oil and gas windfall tax. The plans could also be boosted with £60 billion worth of investment from private investors.
The Crown Estate, which owns the seabed around the UK, is expected to help with the projects which mainly focus on offshore wind schemes. Projects around England and Wales estimated to deliver 20 GW to 30 GW of new offshore wind are being discussed while talks have commenced regarding Scottish projects. GB energy also hopes to boost technologies such as hydrogen, wave and tidal energy, along with carbon capture and storage.
Labour Leader Keir Starmer said in a statement that the plans will “turbocharge” the UK towards energy security while reducing energy bills simultaneously. Onshore wind development has received the green light since the government, led by Energy Secretary Ed Miliband, reversed a previous ban on the issue.
The Conservative party has criticized GB Energy, with claims that ultimately it will cost families rather than cutting bills. Shadow energy secretary Claire Coutinho stated that the flagship energy company will turn into a “financial black hole” pumping taxpayer money into reducing risks for the multi-million-pound energy businesses.
The plans have been regarded by Labour as essential to reducing the UK’s reliance on costly, polluting fossil fuels in the face of rapidly increasing prices following Russia’s Crimea crisis and Ukraine invasion, which has contributed significantly to the cost-of-living crisis. If the plans carry on as expected, GB Energy may take a controlling interest in some renewables generation projects, a crucial step in becoming a clean energy superpower
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