The new UK government announced today the introduction of the Great British Energy Bill, aimed at establishing a new public-owned company to invest, own and manage clean energy projects.

Based in Scotland, Great British Energy will be backed by £8.3 billion (USD$10.7 billion) from the government over the next five years, paid for by a windfall tax on oil and gas companies, according to the government.

Energy Security and Net Zero Secretary Ed Miliband said:

“Great British Energy comes from a simple idea – that the British people should own and benefit from our natural resources. Investing in clean power is the route to end the UK’s energy insecurity, and Great British Energy will be essential in this mission.”

Key functions of the new company will include project development, investment in projects alongside the private sector, working with local authorities to support local energy generation projects, and building UK supply chains, in addition to exploring working together with Great British Nuclear.

Alongside the new legislation, the government also announced a new partnership between the proposed Great British Energy and the Crown Estate, the independent institution which manages land and property owned by the crown, focused on the development of offshore wind farms.

According to the government, the new partnership will enable up to 20-30GW of new offshore wind developments to reach the seabed lease stage by 2030, and has the power to leverage up to £60 billion in private investment.

The government highlighted anticipated benefits from the new partnership, including reducing the time required to deploy offshore wind projects, and lowering risk for developers by giving the public sector a larger role in the early development work for projects, as well as supporting technologies including carbon capture and storage, hydrogen, wave and tidal energy.

Prime Minister Keir Starmer said:

“This innovative partnership between Great British Energy and the Crown Estate is an important step toward our mission for clean energy by 2030, and bringing down energy bills for good.”