Lack of funding could hamper Great British Energy’s ability to deliver clean energy future
Proposed £2bn per year funding for government initiative is just over 10% of what’s needed for renewables
25 July 2024
A lack of funding could hamper the ability of Great British Energy to truly transform the UK’s energy sector, the New Economics Foundation (NEF) has warned.
As the government plans to announce further details of the energy generation company today [Thursday, 25 July], researchers at NEF have said the initiative could help pave the way for the UK’s net zero transition, but only if it is funded properly and is guaranteed to remain in public hands.
Dr Alex Chapman, senior economist at NEF, said:
“If done correctly, Great British Energy could play an important role in the UK’s transition to net zero, reducing emissions and cutting bills for households across the country.
“However, there is a real risk it will not be funded well enough to have a truly transformative impact. The proposed £2bn per year is low and comes in at just half the expected level of private investment in new oil and gas, and just over 10% of the total investment needed in renewables over the parliament.
“If the government wants GB Energy to truly drive the UK towards a clean energy future it must increase its funding significantly, guarantee it will remain publicly-owned in the future and introduce it alongside a National Energy Guarantee to ensure everyone has access to the basic energy they need to live.”
ENDS
Contact
James Rush – james.rush@neweconomics.org
Notes
The New Economics Foundation is a charitable think tank. We are independent of political parties and committed to being transparent about how we are funded.
