King’s Speech launches GB Energy and takes leash off Crown Estate for offshore wind

Labour’s plans to turn the UK into a clean energy superpower were crystallised in the King’s Speech today, with the renewables sector welcoming bills to launch GB Energy, take the brakes off The Crown Estate and streamline the planning process.

King Charles III today set out in Parliament the legislative agenda of the new Labour government led by Keir Starmer, whose party swept to victory on the back of a highly ambitious pledge to kick fossil fuels off the UK grid by 2030.

The King’s Speech gave more detail on those plans, including the launch of GB Energy, a proposed national clean power company.

The UK renewables sector has been keen to hear more about the role GB Energy will play in the market. The Great British Energy Bill, details of which have now been published, specifies that the company will “develop, own and operate assets,” investing in partnership with the private sector.

It will also “facilitate, encourage and participate” in the production, distribution, storage and supply of clean energy.

The bill said it is “highly unlikely” that the scale and pace of investment needed to decarbonise the power system could be delivered by the private sector alone within the “current institutional and policy landscape.”

GB Energy will “help mitigate existing market failures,” according to the bill, and “increase the speed and reduce the cost of deploying renewable generation capacity.”

Malcolm Donald, Edinburgh-based partner at UK law firm Burges Salmon, said that while we “await more detailed information on the precise scope of what GB Energy will offer, it is encouraging to hear that the intention remains to make significant investment in the UK energy industry, with a focus on renewables.”

GB Energy will be headquartered in Scotland and backed with £8.3bn ($10.8bn) in funds over the five-year Parliament.

Crown Estate reforms could turbocharge offshore wind leasing

The government will also introduce a Crown Estate Bill, which will allow The Crown Estate, a key player in helping develop wind power in the UK in its role as seabed landlord, the power to borrow money.

This is it hoped will allow it to bring forward 20-30GW of new offshore wind seabed leases by 2030.

“Currently The Crown Estate cannot use its large cash reserves to invest because it needs these to hold these against the prospect of future financial losses,” according to the bill. “Enabling it to borrow from the Exchequer will free up these reserves to be invested in new projects.”

“This is particularly critical for accelerating the pace of our offshore wind deployment.”

The government also plans to widen The Crown Estate’s investing power to invest in activities that “complement its strategy and support wider government policy objectives, such as digital technologies to support offshore energy development and port infrastructure.”

The proposed bill does not affect The Crown Estate Scotland, which is a separate entity.

Reforms will unblock planning and infrastructure

The government also plans to implement a Planning and Infrastructure Bill. The current planning regime acts as a “major brake on economic growth," according to the proposed bill, which it is hoped will play a key role in addressing this.

The bill will “speed up and streamline the planning process” to build major infrastructure projects, including energy projects.

The bill specifically promises to streamline the delivery process for “critical infrastructure including accelerating upgrades to the national grid and boosting renewable energy, which will benefit local communities, unlock delivery of our 2030 clean power mission and net zero obligations, and secure domestic energy security.”

The government wants to improve local planning by modernising planning committees. It also plans to increase local planning authorities’ capacity, to improve performance and decision making, providing a more predictable service to developers and investors.

“Today’s King’s Speech provides a range of welcome measures that are essential for accelerating the energy transition and generating economic growth,” said RenewableUK’s Executive Director of Policy Ana Musat.

The planning bill is she said “particularly welcome” to ensure that essential infrastructure can be “deployed without delay.”

Octopus Energy founder Greg Jackson said the “clean energy vision laid out in the King's Speech is ambitious but can be achieved with rapid action and huge effort.”

“Accompanied by market reform it could deliver some of Europe's cheapest power and lower bills for UK households.”