The UK Government can secure the future of Great British Energy (GBE) by offering cut-price power and key materials for the UK’s clean energy supply chains, according to a new report from Stonehaven, commissioned by Project Tempo. Sitting as a central recommendation is how GBE can go further when working to invest in domestic clean energy supply chains, boosting energy security and creating skilled jobs.
Through bespoke Power Purchase Agreements (or PPAs) with industries such as clean steel and forward procurement of critical grid components, Stonehaven argues that GBE can turbocharge a new energy and industrial revolution while maintaining enduring political support beyond 2030.
Titled “A New Energy and Industrial Revolution: Making GB Energy a Success”, the report offers an analysis of the Government’s approach to GBE, emphasising the risk of “overpromising and underdelivering”. The study provides the Government with messaging and policy recommendations to ensure GBE’s success over the next five years, with a focus on managing public expectations and pursuing realistic goals.
There is strong public backing for GBE, with polling data within the report showing 58% of people in favour and only 11% opposed. Although the reduction of energy bills is a vital component of this support, broader benefits such as boosting energy security and domestic clean power supply chains are seen as key. Consequently, the report urges the Government to communicate a broader spectrum of GBE’s benefits to manage public expectations effectively.
The report recommends that the Government should not promise voters an immediate reduction in energy bills. Instead, it advocates for a nuanced approach, acknowledging that while GBE may lower bills in the long run, significant impacts on energy costs are less likely within the current parliamentary term.
The report goes further to provide other policy recommendations that will expand upon GBE’s proposed functions, ensuring that its actions deliver on Government messaging while contributing to the 2030 clean power goal.
Alongside building domestic clean energy supply chains, another key recommendation is for GBE to invest and take majority ownership in established technologies like wind and solar power. These sectors, proven at scale, more cost-effective than fossil fuels and more nascent clean technologies, offer an opportunity to retain profits within the UK, provide a clear signal of GBE’s progress, and create cheap power to support Britain’s industrial base.
Adam Bell, Director of Policy at Stonehaven, emphasised the benefits of reducing industrial energy costs:
“Britain stands on the brink of an energy and industrial revolution. The Government’s mission to achieve a clean power system by 2030 is ambitious yet obtainable, but it requires public support and political legitimacy. GBE is central to this revolution; however, it must be framed not just as a means to reduce bills, but as a vehicle for delivering a broader range of economic benefits including industrial security and skilled jobs. Britain’s industrial energy costs are some of the highest among peer countries, putting investment at risk. Great British Energy would do well to change that.”
Pandora Lefroy, CEO of Project Tempo, highlighted the delicate balance required to maintain GBE’s success:
“Great British Energy has a pivotal role to play in transforming the UK’s energy landscape. It has the potential to sit central to a new energy and industrial revolution. But managing expectations around short-term achievements while championing the long-term benefits is going to be essential. The Government must balance its goals for clean power with realistic expectations for GBE’s initial term. This balanced approach will foster the necessary public trust and support, allowing GBE to evolve into a lasting force for good for UK industry and energy sectors.”
