Great British Energy has officially come to life after the recent passage of its founding bill through Parliament, marking a watershed moment in Britain’s energy sector.
This ambitious publicly-owned energy company, first announced shortly after Labour took office in July 2024, now stands poised to accelerate the nation’s transition to clean power with substantial government backing of £8.3 billion (US$10.4 billion).
Moreover, this groundbreaking legislation achieved unanimous consent from Scotland, Wales, and Northern Ireland’s devolved governments the first bill under the current parliament to accomplish such consensus.
The Three-Pronged Investment Strategy
The company’s investment approach, as outlined by interim CEO Dan McGrail, reflects a comprehensive vision for transforming Britain’s energy landscape. Furthermore, this strategy consists of three interconnected pillars designed to maximize impact across different sectors.
Major Clean Energy Infrastructure
The priority focuses on large-scale development and investment in transformative projects. Consequently, offshore wind and long-duration energy storage technologies stand at the forefront of these initiatives.
During an interview at Innovation Zero in April 2025, McGrail emphasized, “We want to enter the market as a developer; it’s a very important part of the mandate we’ve received.”
Additionally, when pressed about specific storage technologies under consideration, McGrail identified several promising pathways:
- Pumped hydro, which he described as “pretty mature”
- Liquid air energy storage, characterized as “relatively new, very scalable modular technology.”
- Compressed air energy storage built around the UK’s unique geological features
Community Empowerment through GB Local
The second investment stream, aptly named “GB Local,” aims to energize community-based projects. Subsequently, this initiative will provide crucial support for small-scale power generation facilities rooted in local communities. The company has already launched notable community programs:
- Scotland’s community energy fund, backed by £4 million from Great British Energy, has opened applications for local clean energy projects
- Welsh communities will receive nearly £3 million for similar renewable initiatives
- Projects eligible for funding include community-led onshore wind, rooftop solar, and hydropower developments
These initiatives, therefore, represent a fundamental shift toward democratizing energy production across Britain.
Strengthening Supply Chains
The third strategic focus targets supply chain investments to reinforce the company’s core activities. Impressively, the company has allocated an initial £300 million specifically for offshore wind supply chains to boost Britain’s engineering, technical, and manufacturing capabilities.
Furthermore, McGrail addressed questions about the company’s commitment to ethical sourcing.
The company recently prohibited the procurement of climate technology associated with modern slavery practice, a move that particularly affects components for wind turbines manufactured in China.
When questioned about this policy shift, McGrail explained: “The reason why it [the Modern Slavery Amendment] wasn’t there is ultimately because there is a law and has been a law since 2015 which proscribes that, and ultimately GB Energy would comply with that law.” Nevertheless, he noted that “this amendment seeks to create additional oversight” and could help prioritize UK-manufactured climate technologies.
Partnering with Private Enterprise
One of McGrail’s fundamental principles as interim CEO involves positioning Great British Energy as a complementary force rather than a competitor to existing energy companies.
“We are looking to come into the energy industry as a new organisation which is there to work alongside the private sector,” he clarified. “We’re not here to compete with the private sector, we’re here to stimulate investment.”
This collaborative approach extends to investment strategies, with McGrail noting that the company will primarily take minority stakes in projects.
Perhaps most tellingly, he observed, “One of the things I’ve learned in the first five weeks in this job is that the appetite for GB Energy to come to life and to bring capital to projects to co-invest with companies is high.”
Industry Perspectives
Rachel Delacour, CEO of Sweep, offered thoughtful insights on the company’s potential, especially considering Miliband’s description of net zero as “the economic opportunity of the 21st century.”
“It’s reassuring to see the UK government reaffirm that clean power is central to economic growth,” she remarked.
“Great British Energy has the potential to drive real change, but it must be backed by strong systems: rigorous data tracking, oversight of its environmental impact, and clear guidance for businesses.”
However, Delacour emphasized that government initiatives alone cannot achieve transformative change: “Initiatives like Great British Energy are only part of the puzzle in the UK’s race to net zero. It must be paired with private-sector action to unlock real progress.”
Expert Editorial Comment
For those involved in this ambitious project, the establishment of this public energy company represents nothing less than a revolution in public services comparable in significance to the creation of the National Health Service.
Great British Energy Chair Juergen Maier captured this vision perfectly: “Great British Energy was created to ensure British people reap the benefits of clean, secure, homegrown energy.
We now have full backing to scale up the company, crowd in investment, and back clean energy projects across the country.
