The government’s new GB Energy subsidiary will partner with the Crown Estate

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The new Labour government announced that GB Energy would be a publicly owned clean energy company that would secure public and private investment in renewable energy sources such as wind, solar and hydropower, with £8.3 billion earmarked for the project this parliamentary term.

The policy was one of Labour’s key manifesto promises during the general election campaign. Starmer, who launched the policy today with Energy Secretary Ed Miliband in Cheshire, says it will not only cut household bills and reduce the UK’s dependence on foreign energy, but also boost economic growth.

The Crown Estate, the collection of land and properties in the UK owned by the monarchy, estimates that by 2030 the partnership will be able to power the equivalent of almost 20 million homes through new investment in offshore wind farms.

The Crown Estate has a portfolio of land and seabed worth £16bn, according to government figures. The Estate operates independently, with its net profits paid back to the Treasury. Its CEO is Australian property expert Dan Labbad.

In a speech at a press conference launching the bill, Starmer criticised the previous Conservative government for its performance on energy and the environment, saying it had “messed up” and left “the worst legacy since World War II”.

“This government is not guided by ideology but by a determination to act for the benefit of the British people,” said the Prime Minister.

“So we will champion business, workers and wealth creation for all by maximising our assets – not selling them off – to deliver a greater return on investment to taxpayers.

“And this new partnership – Great British Energy, Crown Estate – will unleash a wave of public and private investment to drive the low-carbon transformation, creating good, secure jobs and supply chains across the UK.”

Starmer confirmed that Juergen Maier, former Siemens UK boss, had been appointed CEO of GB Energy.

While the government says it is committed to clean energy, Starmer confirmed ministers would not revoke existing oil and gas licences issued by the Conservative government.

“We will not have any of the licences that have been granted revoked or disrupted by us,” Starmer said. “But the transition to renewable energy is coming. Everyone knows that, everyone in the sector knows that.

“What you have in a mission-driven government, a purpose-driven government, is an absolute determination to see this as an opportunity to manage this transition in a fair way, particularly for those who work in the oil and gas sector.”

Miliband, also speaking in Cheshire, said the new project would unlock “billions” of investment in the UK and that the “government believes it is time for the British people to create and own something themselves”.

“The Crown Estate is an enduring institution that will last beyond one term or one Government to manage the UK’s energy resources for the benefit of the country, accelerating clean energy delivery, building supply chains, driving investment and creating jobs,” said the Secretary of State for Energy Security and Net Zero.

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