Great British Energy – what is it and what does it mean?.
Great British Energy (GBE) is the newly established, publicly owned UK company dedicated to accelerating the transition to clean and renewable energy. Launched by the new Labour government, GBE aims to enhance energy independence and lower energy bills for British households.
The company is focused on developing and investing in clean energy projects like offshore wind, solar power, hydrogen, and carbon capture, combining public and private investment to expand the UK’s clean energy capacity and create skilled jobs.
Key functions of Great British Energy
According to the Government’s founding statement, Great British Energy has five key functions:
- Project development
- Project investment
- Local power plan
- Supply chains
- Great British Nuclear
In summary, with these functions the government aims to: speed up delivery of energy projects; invest in, advance and support new energy generation projects alongside the private sector, local authorities and communities; build the UK supply chain; and explore the potential of a partnership between Great British Energy and Great British Nuclear.
Partnership with The Crown Estate
On 25th July 2024, the Prime Minister unveiled a ground breaking partnership between Great British Energy and The Crown Estate, which could attract up to £60 billion in private investment to support the UK’s pursuit of energy independence.
The partnership aims to use The Crown Estate’s British seabed to develop offshore windfarms enough to power almost 20 million homes by 2030. The initiative is part of the government’s broader strategy to reduce the UK’s reliance on fossil fuels and ensure long-term energy security, particularly in light of recent global market volatility.
What could Great British Energy mean for the UK housing sector?
Increased access to renewable energy
Great British Energy could lead to increased investment in renewable energy sources like wind, solar, and hydroelectric power, providing greater access to green energy for the housing sector and helping reduce the carbon footprint of homes. Additionally, there could be more initiatives, such as grants or subsidies, to promote the installation of renewable energy solutions like solar panels and small wind turbines on residential properties.
Lower energy costs
We could see a reduction in energy bills if renewable energy is supplied directly to consumers, making housing more affordable. Additionally, as a public energy company, GBE could protect consumers from international market volatility, offering more stable and predictable energy prices.
Incentives for energy efficiency
New government incentives aligned to the goals of GBE could be introduced to improve home energy efficiency through upgrades such as better insulation, double glazing, and energy-efficient boilers. There might also be efforts to retrofit older homes, with financial support available for replacing outdated heating systems with greener alternatives, such as heat pumps.
More stringent building regulations
GBE could lead to stricter building regulations to ensure new homes are energy-efficient and capable of integrating renewable energy. Additionally, there may be a greater emphasis on adopting green building standards, like Passivhaus or BREEAM, in the UK housing sector, driven by policy changes aligned with GBE’s goals.
Community energy projects
We could see the introduction of new community energy projects, allowing local groups to generate their own renewable energy, benefiting housing associations and local authorities with a low-cost energy source. Developing local energy networks could reduce transmission losses and give communities greater control over their energy supply, fostering more resilient and sustainable local economies.
Economic impact and job creation
The push for energy efficiency and renewable energy could create jobs in the housing sector, especially in construction, retrofitting, and energy system maintenance. This would increase demand for skilled workers in renewable energy installation and efficiency improvements, leading to new training programmes and employment opportunities.
Social housing benefits
Great British Energy could prioritise social housing projects, ensuring that social housing providers and tenants benefit from lower energy costs and improved energy efficiency. This could help reduce fuel poverty among low-income households.
The establishment of Great British Energy has the potential to have a significant impact on the UK housing sector by promoting renewable energy use, lowering energy costs, incentivising energy efficiency, and potentially increasing property values for energy-efficient homes. However, the extent of these benefits will depend on how the policy is implemented, the level of investment in renewable energy infrastructure, and the specific regulatory changes that accompany the establishment of Great British Energy. The above is mostly conjecture at this time…for now we will have to wait with baited breath to discover the real challenges and opportunities GBE will bring.