At the end of last month, Labour unveiled Great British Energy (GBE). This new, publicly owned energy generation company is poised to redefine the UK’s energy landscape. Created to facilitate a secure transition to decarbonisation, GBE marks a significant step in Labour’s commitment to net zero. The initiative also aims to tackle some of the most pressing challenges in the UK’s energy sector today.
In line with its promise to establish Britain as a clean energy superpower, Labour has already made some significant changes. The new administration lifted the ban on onshore wind within its first 72 hours in office. It also set up a new Mission Control to drive the UK’s energy objectives. The introduction of GBE is further example of the government’s dedication to investing in home-grown clean energy. Additionally, GBE will significantly contribute to accelerating the UK’s transition to a net zero economy.
What are Great British Energy’s Objectives?
Britain’s mission for clean energy
Great British Energy’s purpose is to accelerate the deployment of clean energy technologies, reduce carbon emissions, and bolster the UK’s energy security. By championing and facilitating investment for the transition to renewable energy sources, GBE aims to deliver affordable, clean, and home-grown energy solutions for UK taxpayers, billpayers, and communities. The hope is that this initiative will provide the necessary financial support for the United Kingdom to achieve our 2050 goals.
GBE will focus on advancing clean tech such as offshore wind, solar power, and carbon capture, which will support the overall decarbonisation of Britain’s electricity system. Aside from bolstering clean tech, the GBE initiative also aims to support biodiversity and water quality protection efforts.
Does Great British Energy address the UK’s energy challenges?
The UK faces a number of energy challenges, and GBE aims to tackle them. The Russian invasion of Ukraine and the subsequent international energy crisis has highlighted the country’s reliance on fossil fuels and energy imports, leading to increased energy insecurity and costs. Alongside this, the climate crisis has seen a surge in extreme weather events, a rise in global temperature and as a result, increased climate awareness from the UK public, which demands swift action towards secure renewable power.
GBE aims to mitigate these issues by reducing dependence on the international fossil fuel market and promote domestic clean energy. The initiative seeks to make the UK a clean energy superpower by reducing carbon emissions, enhancing energy security, and fostering long-term sustainability. This approach, whilst not only crucial for addressing climate change, ensures that Britain has secure energy whilst generating economic and employment opportunities across the country.
Operational Framework of GBE
How Great British Energy will operate
Great British Energy will operate as a publicly-owned, operationally independent entity based in Scotland. The organisation will work closely with industry partners, local authorities and communities to drive the development of clean energy projects.
An important aspect of GBE’s operational framework is its partnership with The Crown Estate, which is expected to help leverage £60 billion in private investment. The Crown Estate is no stranger to investment in clean technology; It’s somewhat of a wind energy superpower. As managers of the seabed around the British Isles, they lease thousands of nautical square miles to wind farm operators. Furthermore, they own 11% of the UK’s onshore wind and have a £16 billion portfolio for further investment. With its established interest in clean energy and financial backing, partnership with the crown estate should prove fruitful. As such, a strong legislative framework and support from the crown will hopefully drive private investment in clean tech.
GBE will undertake several key functions: investing in and developing clean energy projects, overseeing project ownership, and implementing local power plans. The organisation will also focus on developing supply chains and there are plans for a potential collaboration with Great British Nuclear to support nuclear energy initiatives. Headed by Secretary of State for Energy Security Ed Milliband, GBE will operate under strategic objectives and a framework document developed by The Department for Energy Security and Net Zero (DESNZ).
Complimentary clean energy initiatives
Alongside the launch of GBE, labour will also introduce the Great British Energy Bill which will establish a statutory footing for GBE. This legislative support is backed by £8.3 million in government investment, ensuring that GBE is well-positioned to boost the UK’s transition to a sustainable energy future. This is supported by the new Mission Control for Clean Power 2030, headed up by former head of the UK’s Climate Change Committee; Chris Stark. Mission Control will be the first government body of its kind, dedicated solely to supporting the shift from fossil fuels to sustainable, domestically produced energy.
Mission Control will collaborate with major energy stakeholders such as Ofgem, the National Grid, and the Electricity System Operator. In doing so, it aims to eliminate institutional barriers and swiftly tackle issues as they emerge. This proactive approach will enhance the speed of connecting new power infrastructure to the grid, ensuring cleaner and more affordable energy reaches homes and businesses across Britain.
Economic and employment opportunities
Great British Energy (GBE) is projected to generate up to 650,000 new jobs across various sectors. By investing in and developing clean power generation technologies GBE aims to create employment opportunities in engineering, construction, and administration.
Given the ‘green skills gap’, this is a critical development. The Institute for Public Policy Research approximates that 1.6 million new jobs will be created by the energy transition. However, we currently lack the skilled workforce to support this. For example, estimates suggest that Britain currently has several hundred qualified welders, but to tackle the infrastructure developments necessitated by net zero, this number must grow to several thousand. Labour plans to address this by transitioning existing skilled workers from the fossil fuel industry and helping them to translate their skills to green sector jobs, while also developing green skill pipelines for young people. This dual approach aims to effectively cultivate a workforce ready to lead a national green ‘re-industrialisation’.
Regional energy solutions
Empowering communities through local power
The Labour Party’s manifesto highlighted the importance of community power, and GBE is set to deliver on this promise through the Local Power Plan. This plan involves partnering with local authorities and community energy groups to implement small and medium-scale renewable energy projects. By focusing on local power generation, GBE aims to reduce transmission grid pressures and ensure that the benefits of clean energy projects are reinvested into local communities.
The Local Power Plan will encourage communities to propose and develop their own energy projects. This approach supports a more decentralised and resilient energy system, giving communities a stake in the clean energy transition and the opportunity for local economic growth.
Great British Energy, OFGEM and regional energy strategies
GBE’s objectives align with OFGEM’s new proposals for Regional Energy Strategic Plans (RESPs), set to be implemented from 2026. These plans aim to enhance the development of energy grids across Britain by connecting clean power sources to homes, businesses, and communities.
The new National Energy System Operator (NESO) will oversee the eleven RESP regions across the UK. Regional hubs will play a crucial role in managing energy and integrating clean energy sources. These hubs will reduce power costs and ensure effective energy storage and management at the regional level.
The UK’s need for energy storage solutions
Currently, GBE has not publicised its plans for energy storage, although this will be critical for a secure, renewably powered grid. There have been calls advocating for the UK to implement LDES from multiple expert bodies. Late last year the Royal Society released a report on Britain’s need for large scale energy storage. They concluded that renewables could meet the UK’s projected 2050 electricity demand of 570 TWh. However, this requires gradual deployment of long-duration energy storage and rapid response small-scale storage (for grid stability). Moreover, their study investigated, based on cost and effectiveness, the optimal long duration storage model. This analysis identified hydrogen storage in salt caverns as the best option.
The Royal Society aren’t alone in this perspective. The House of Lords’ Science and Technology Committee’s report from earlier this year ‘Long Duration Energy Storage: Get on With it’ firmly reinforces their conclusions. This report had a similar message: that a secure, renewably powered grid is possible only when supported by long-duration energy storage. This table outlines the capacity of possible storage models.
As shown above, the largest lithium-ion battery in the UK holds only 0.15 GWh, reflecting our limited existing energy storage capacity. In contrast, CAES can store 100 times that amount per salt cavern. With the UK’s minimum projected storage requirement being 1000 GWh, we cannot overlook the necessity of energy storage.
Between October 2022 and January 2023, the UK wasted 1,350 GWh of renewable energy due to inadequate storage. This loss underscores the urgent need for investment in effective energy storage solutions, which GBE will hopefully support. Improved storage would prevent energy curtailment, reduce reliance on fossil fuels, and enhance grid stability, aligning with GBE’s goals.
How Storelectric would support Great British Energy’s success
As valued stakeholders in the UK energy market, Storelectric regularly advises the Department for Energy Security and Net Zero (DESNZ). Recently, DESNZ reached out to Storelectric for consulting. We advised them on the future of hydrogen storage and the development of novel low-carbon technologies in the UK. With DESNZ overseeing the GBE project, Storelectric is in a strong position to support the future of clean UK energy.
Simon Maycock, Head of Technology at Storelectric, underscores the importance of energy storage in GBE’s plans:
“The launch of Great British Energy is a very welcome move. It will inspire confidence in clean technology, enabling more private investment in UK energy infrastructure. GBE’s strategy aligns with Storelectric’s vision of achieving net zero and lowering consumer bills and while we’re glad to see hydrogen generation and storage and carbon capture and storage mentioned in the founding statement, a focus of energy storage technologies should, in our opinion, have been included. As an undisputed crucial component for achieving a secure, renewably powered grid, we’ve no doubt this will be feature heavily in future announcements as their strategy is developed further. Compressed Air Energy Storage (CAES) technology, for example, maximises the benefits of renewable energy by using excess wind power to store vast amounts of compressed air which can later be used to generate electricity, reducing curtailment costs. This integration is crucial for achieving net zero and lowering consumer bills and could play a significant role in supporting the GBE initiative.”
– Simon Maycock, TSG
The UK’s future energy landscape
The launch of Great British Energy (GBE) marks a pivotal step in the UK’s energy transition. With its focus on clean energy deployment, job creation, and community involvement, GBE will significantly impact the country’s energy landscape. However, to fully realise its potential it is crucial for GBE to integrate energy storage solutions into its plans. This would enable GBE to better manage fluctuations in renewable energy generation. Energy storage reduces reliance on fossil fuels, supports the integration of renewables, lowers costs, and increases system reliability.
Looking ahead, Great British Energy has the potential to drive long-term benefits for the UK’s energy sector, economy, and environment. As the clean energy transition progresses, ongoing collaboration and innovation will be crucial. By addressing the challenges of energy security, GBE can promote local, clean energy solutions. As a result, GBE could facilitate an economically viable, renewable energy system for the UK. At Storelectric, we warmly welcome this development and look forward to seeing the impact of these policy changes.
On 12th November, Storelectric attended the Green Careers Fair event at Imperial College London, a fantastic opportunity to engage with more than 600 students interested
Storelectric is excited to announce our involvement in a programme ‘Power Shift: The Renewable Energy Revolution’ produced by ITN Business. The programme, hosted by Lukwesa
