The government has launched GB Energy, a publicly-owned energy company, but many remain confused about what GB Energy actually means for our transition to renewables.
What is GB Energy?
Labour’s manifesto pledge to create a new state energy company promised to decrease the UK’s reliance on foreign energy, cut bills and create thousands of jobs. According to the government GB Energy will take advantage of Britain’s ‘abundant natural resources’ and will run what it calls clean power projects across the country.
It will be funded by public funds totalling £8bn, much of which will come from a windfall tax on firms producing fossil fuels, and its headquarters will be in Aberdeen.
Any profit made by the company through investments will be given back to taxpayers and they should see a reduction in their energy bills too. It will rely on the private sector co-investing in emerging energy projects to ensure they are as competitive as more mature technologies.
How will power be generated?
GB Energy will fund both existing and new clean technology and renewable energy projects on a small to medium scale, but it won’t supply any power to homes. It plans to invest in solar and wind projects and newer technologies such as energy storage, carbon and hydrogen capture and floating offshore wind farms.
With all of this new clean power, as well as many homeowners and businesses also committing to generating their own electricity, it could be that the UK is heading towards the net zero target of 2050.
There has been a push for property owners to install air source heat pumps, which promise cheaper, cleaner energy. In Norway, around two-thirds of homes use heat pumps and the positive impact they have on the environment is clear. There are many specialist installers, such as https://gsmlimited.com/services/air-source-heat-pumps/, who can guide you through what’s involved if you are considering a heat pump in your home.
Local Power
GB Energy will also support community groups in project planning renewable energy projects, allowing communities to own these and recoup the profits.