The UK government has released a five-year plan that essentially doubles down on efforts to reduce emissions of carbon dioxide as a top priority in the energy space.
The plan was drafted and released by Great British Energy, the newly set-up entity that the Starmer government tasked with handling energy investment matters, with an exclusive focus on the energy transition. The government is funding the investment vehicle with over $11 billion for the duration of the current parliamentary term.
“GBE will build a portfolio which is generating income by 2030 and be on a pathway to company-wide profitability,” the state company said in its strategic plan. It involves the addition of 15 GW in wind and solar capacity, as well as battery storage, by 2030. For this, Great British Energy will use both the government funds pledged by the Starmer cabinet and up to 15 billion pounds in private capital, equal to some $20 billion.
In addition, Great British Energy said, “GBE will operate as a developer and equity investor, giving the public a lasting stake in the full lifecycle of clean energy infrastructure. The returns generated from publicly owned assets will be reinvested into new capacity, new jobs and new opportunities across the UK.”
The company also said its plan would create more than 10,000 jobs “directly supported through GBE-backed and funded projects, including in areas historically dependent on oil & gas.” The loss of oil and gas jobs due to the energy transition plans of the UK government is a thorny issue in the country. Earlier this year, the Scottish Affairs Committee released a report showing that job creation in the low-carbon energy space was falling way short of making up for job losses in oil and gas.
Critics of the Starmer government’s energy transition plans point out that this is pushing energy costs much higher than is acceptable. The government itself is blaming international gas prices, even though they have come down from 2022 peaks, while British energy bills keep going up.
By Irina Slav for Oilprice.com
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