The government is working together with the Crown Estate to introduce new offshore wind farm developments as part of its Great British Energy plan.
The partnership is working towards a substantial expansion of offshore wind developments by 2030, aiming for a capacity of up to 30 gigawatts. This would generate sufficient clean energy to supply power to nearly 20 million households.
According to the government, it has the potential to attract up to £60 billion of private investment into the country’s energy infrastructure.
Ministers are hopeful that this initiative will help achieve their goal of lowering energy expenses for households while also encouraging more independence in the UK’s power supply.
The announcement of the deal aligns with the government’s introduction of legislation to establish Great British Energy, a new publicly owned company. This company, as outlined in Labour’s manifesto, is set to receive £8.3bn of funding over the next parliament.
The Prime Minister, Sir Keir Starmer, highlighted his government’s unwavering dedication to bringing about positive transformation and enhancing the welfare of the people.
“This innovative partnership between Great British Energy and the Crown Estate represents a major achievement in our commitment to achieving clean energy by 2030, while also prioritizing the long-term affordability of energy for consumers.”
He showed great excitement about the partnership, mentioning how it would speed up our country’s journey towards energy security, the generation of new skilled jobs, and the reduction of costs for families and businesses. He made it clear that his government is fully dedicated to achieving positive results for Britain.
The Crown Estate is responsible for managing a diverse portfolio worth £16bn, which includes a significant portion of Britain’s seabed up to 12 nautical miles from the land.
It generated a staggering £1.1bn in profit last year, with a significant portion stemming from leasing land to offshore wind providers. The majority of these funds are directed back into the government’s coffers, while a small fraction is allocated to the monarchy.
As part of another bill being introduced on Thursday, the Crown Estate will be granted additional borrowing powers to increase its investments in wind projects.
The Chief Executive, Dan Labbad, emphasized the commitment of the Crown Estate to serving the national interest by ensuring the responsible management of our natural resources, with the goal of achieving a decarbonized, energy-secure, and sustainable future.
“By harnessing new powers and collaborating with the government, we have the opportunity to attract more investment into our country’s future. This will not only contribute to the restoration of nature but also foster job creation.”
Additional information about Great British Energy was revealed, as the government announced its intention to oversee energy projects from development to accelerate their progress. Subsequently, these projects will be returned to private companies, while the government retains a stake to ensure a return for the public.
However, ministers have suggested that Great British Energy may one day operate projects for themselves.
Greenpeace UK praised the announcement as a positive initial move towards fulfilling Labour’s commitment to expanding renewable energy throughout the nation.
However, Claire Coutinho, the shadow energy security secretary, argued that Great British Energy is merely a gimmick that will ultimately burden families instead of reducing their bills.
She stated: “Labour has already acknowledged that their main energy company will not produce any energy, and now we have discovered that it is a financial burden, diverting taxpayers’ funds to mitigate risks for energy companies worth millions of pounds.
“Labour’s energy policy prioritizes ideology over the national interest… the Conservatives will ensure accountability and prioritize affordable bills and secure energy.”