Britain’s new state-owned energy company, GB Energy, will receive £100m in renewable project funding over the first two years of parliament, even as the country’s government pledges £8.3bn by 2029.
This initial funding allocation has raised concerns about the Labour government’s commitment to fully decarbonising the electricity system by 2030, particularly within the solar sector.
The company, headquartered in Aberdeen, Scotland, will focus initially on solar projects, which are faster to deploy than other renewables, to provide immediate impact.
This strategy aims to meet the growing market demand for clean energy and help address household energy costs. Sir Ed Davey, Leader of the Liberal Democrats, expressed concern, stating: “I worry that the government isn’t acting with the urgency needed to sufficiently increase renewables, bring down emissions and cut household energy bills.”
Allocations
The funding includes £125m allocated for 2025-26, with £25m set aside for the company’s establishment and £100m directed toward renewable project development, primarily through partnerships with private sector operators.
According to Adam Bell, policy director at Stonehaven, this funding aligns with Great British Energy’s early-stage capacity. “If it was £2bn this year, I would question their ability to spend it in time,” he said, noting that gradual scaling allows for efficient resource use.
Great British Energy will work with the National Wealth Fund (formerly the UK Infrastructure Bank) to leverage expertise and develop project pipelines.
The Department for Energy Security and Net Zero stated that additional funding will follow as the company ramps up activities, supporting the government’s commitment to £8.3bn over five years.
By focusing on solar initially, Great British Energy aims to make a swift impact in the renewables market as part of the UK’s clean energy transition.
