Ed Miliband’s clean energy company is being split apart
Billions of pounds from Great British Energy's original budget has been diverted to schemes not in its original remit.
Labour's promise to create a government-owned energy company, Great British Energy (GBE), has not materialised as originally planned. According to analysis by POLITICO, billions of pounds from GBE's budget have been redirected towards unrelated projects, including nuclear schemes and the revitalisation of Britain's electricity grid.
The company was initially set up by then Energy Secretary Ed Miliband with £8.3 billion of government funding, with the aim of owning, managing and operating clean power projects. Labour officials had hoped that local projects would receive around £3 billion of the total budget, while the rest would go towards establishing GBE in the market, including investments in wind and solar projects.
However, GBE's purpose and funding allocation now appear to be shifting away from its original objectives. In July 2024, the government reassigned £2.5 billion from GBE's budget to support the development of small-scale nuclear power plants. Additionally, funding for smaller-scale projects, such as installing solar panels on school and hospital roofs, has been reduced.
Labour's Shadow Energy Minister Harriet Cross has expressed concerns about the change in focus, questioning whether GBE bears any resemblance to the government's original vision. Despite these criticisms, some industry officials argue that investing in grid infrastructure is a necessary step in the energy transition, as private networks have a monopoly in this area.
Written by urgent.news from Politico EU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
