Statement of Strategic Priorities to Great British Energy (HTML)

Question 1

Ministerial letter

Accepted Answer

Dan McGrail
CEO, Great British Energy
AB1 Building
Crimon Place
Aberdeen
AB10 1BJ

16 September 2025

Statement of Strategic Priorities to Great British Energy

Dear Dan,

Great British Energy (GBE) is at the forefront of the government’s mission to make the UK a clean energy superpower, to bring energy security, protect billpayers, create good jobs and help protect future generations. Over the last year, we’ve made rapid progress in setting up GBE – notably confirming the £8.3bn capitalisation of GBE and GBE – Nuclear, placing GBE on a statutory footing, appointing its Board, start-up Chair and CEO, and announcing its first projects. These include £180 million to install solar panels to lower bills for hundreds of schools and hospitals, £10 million for mayoral strategic authorities to invest in renewable energy projects, and £300 million to support domestic offshore wind supply chains.

Looking forward, and in accordance with Section 5 of the Great British Energy Act, this statement articulates my strategic priorities, as Secretary of State, for GBE. In accordance with the Great British Energy Act, you should consider how to reflect these priorities in your Strategic Plan.

We must build an energy system that reindustrialises our industrial heartlands with good jobs and strong trade union representation, while tackling the climate crisis. This government is creating a more affordable and secure energy system which makes the most of our natural resources and protects consumers from the volatility of fossil fuel market price spikes, helping to lower bills for households and businesses. GBE will be a key player in establishing the energy system of the future, by becoming an expert development partner to develop, own and operate clean energy assets across the UK. It will support projects at all stages of their lifecycle - from early development through to successful operation. GBE will put energy back in the hands of the British public, enabling the benefits of the clean energy transition to flow back into communities, and support a fair and equitable transition.

GBE should support the establishment of resilient clean energy supply chains across the UK, bringing good, unionised jobs and wider benefits for the public. GBE should work towards becoming a financially sustainable and self-financing organisation in support of its wider mission, reinvesting its returns for the benefit of the public, as part of this government’s project to protect billpayers for good.

GBE will work in partnership with the private and public sectors, devolved and local government, and communities to deliver across all 4 nations of the UK. With its headquarters in Aberdeen, GBE is well placed to kickstart a UK-wide clean energy revolution drawing on Aberdeen’s world-leading energy and engineering expertise.

Making Britain a clean energy superpower, creating good jobs and cutting bills for good, is a defining mission for this government. I look forward to working with you to meet this challenge and deliver for the public.

Yours ever,

Rt Hon Ed Miliband MP
Secretary of State for Energy Security and Net Zero

Question 2

Statement of Strategic Priorities

Accepted Answer

I ask that you produce a Strategic Plan within 6 months of the issuing of this statement, setting out how GBE will deliver on the priorities set out in this statement.

Mission

GBE’s mission is to accelerate clean energy deployment to boost energy independence, reduce bills for good, create jobs, and ensure UK taxpayers, billpayers and communities reap the benefits of clean, secure, home-grown energy.

GBE is at the forefront of the government’s mission to make the UK a clean energy superpower, contributing to the delivery of Clean Power by 2030 and the UK’s acceleration to Net Zero 2050.

GBE will also support the government’s mission to kickstart economic growth, through investing in clean energy projects and related supply chains, creating high-quality jobs, and providing market confidence in nascent and growth sectors.

Strategic objectives

GBE should carry out its activities in alignment with this Statement, whilst acting in accordance with the Great British Energy Act.

GBE has 2 core objectives:

1. Drive clean energy deployment across the whole of the UK, as a strategic developer, investor, and owner of clean energy projects.

This includes:

developing new clean energy projects and derisking the existing projects needed to deliver Clean Power 2030 and Net Zero 2050, including as a co-developer with the private and public sectors, local government, and community energy groups
investing in the clean energy supply chain projects needed to unlock clean energy deployment and support delivery of the Industrial Strategy
catalysing additional private sector investment through its investments to drive clean energy deployment and help deliver the Growth Mission

2. Ensure that UK taxpayers, billpayers, communities, and the current energy workforce benefit from the clean energy transition by increasing public ownership and community involvement in the development of clean energy projects, and by supporting jobs and economic growth across the UK.

This includes:

creating and maintaining well-paid, high-quality jobs across the UK through GBE-supported projects
working towards being financially self-sustaining in the long-term and increasing public and community ownership of clean energy assets, so that any return can be reinvested to support the transition and for the wider public good
driving the long-term growth of the local and community energy sector across the UK

GBE should carry out its activities in the way that it considers most likely to progress its objectives as a whole and in line with this Statement of Strategic Priorities. Whilst specific projects may be weighted towards achieving one objective, no project should result in significant adverse impacts to any of GBE’s objectives.

GBE should look across the clean energy technology spectrum for opportunities to achieve its objectives, including in established and nascent technologies. GBE has the scope to consider any opportunities that are in line with its objects, set out in the Great British Energy Act 2025, which include but are not limited to opportunities in respect of the following technologies: renewables, energy storage, and low carbon technologies. The term ‘clean energy’ is used in this statement to describe these various technologies.

Objective 1: Drive clean energy deployment across the whole of the UK, as a strategic developer, investor, and owner of clean energy projects

In the Clean Power 2030 Action Plan, the government set its ambition to achieve at least 95% of low carbon generation by 2030, paving the way to decarbonising the wider economy by 2050.

GBE should play an enabling role in the deployment of renewable energy projects and other clean energy technologies in the UK by supporting clean energy projects across their lifecycle, from early development through to successful operation. GBE will own stakes in the projects it develops itself, as well as being an engaged and proactive co-developer with the private and public sectors, devolved and local government, and community energy groups.

Creating GBE as a national energy champion is a signal to domestic and global investors that the UK is open for clean investment, unlocking opportunities across the sector and GBE should seek to provide certainty to industry, to catalyse investment into the clean energy sector. GBE’s capital and expertise should drive forward clean energy generation by derisking projects across their lifecycle, particularly at the development stage, thereby helping to mobilise increased private sector finance.

GBE will also invest in the supply chains that are vital to supporting the deployment of clean energy projects. GBE will use its capital to unblock existing supply chain constraints and support the supply chains needed to unlock deployment of new clean energy technologies.

By carrying out these activities, GBE will contribute to the government’s related policy positions and intentions, including the Industrial Strategy and the government’s response to NESO’s Strategic Spatial Energy Plan.

By performing this unique role in the energy system, GBE will help support and derisk the delivery of our Clean Power 2030 ambition and the long-term energy mix needed to accelerate to Net Zero.

Objective 2: Ensure that UK taxpayers, billpayers, communities, and the current energy workforce benefit from the clean energy transition, by increasing public ownership and community involvement in the development of clean energy projects, and by supporting jobs and economic growth across the UK

As the UK’s publicly owned energy developer, GBE holds a distinct position in being able to drive public ownership of energy assets, thereby allowing any return on investment to be recycled into new projects for the public good. GBE should look to develop a balanced portfolio across its commercial projects, in support of becoming financially self-sustaining in the long-term and making a return which can be reinvested to support the transition.

In carrying out its activities, GBE should seek to create and maintain well-paid, high-quality jobs across the UK, contributing to the hundreds of thousands of good jobs in clean energy sectors and supply chains that we expect the UK’s energy transition to create. These activities will support the government’s mission to break down barriers to opportunity and the approach set out by the Office for Clean Energy Jobs, with GBE following, and leading through, best practice.

This will mean working in partnership with industry, workers and trade unions to deliver the skilled workforce needed to achieve our clean energy superpower mission, ensuring that these jobs are accessible to all and of high quality, focusing on fair pay, favourable terms, and good working conditions. For example, I expect GBE supported projects to create skilled jobs in areas such as project delivery and energy investment at all levels of entry in Aberdeen and across the UK. Individuals fulfilling these roles will benefit from long-term career development support and a commitment to worker representation through a representative trade union or unions.

Clean energy industries also represent a significant growth opportunity for the UK economy which GBE is uniquely positioned to help unlock. By investing in clean energy and its supply chains, GBE should help support the delivery of the government’s Industrial Strategy and the mission to kickstart economic growth through its role as a developer, owner and operator of energy assets.

GBE’s investment in clean energy supply chains will be a vital part of delivering on this objective, catalysing additional private sector investment in new and existing facilities which will support good quality jobs across the UK. This means exploring opportunities in the UK’s growth-driving sectors, unlocking barriers to crowd-in investment essential for delivering long-term, sustainable, inclusive, and resilient growth. GBE should further support UK industry by taking forward projects which contribute to our energy security, reducing energy costs and creating a more stable environment that is conducive to economic growth.

Communities are at the heart of the government’s mission to make Britain a clean energy superpower. I expect GBE to promote community engagement and ensure that its approach to community benefits is in line with leading players in the market. Working alongside the Department for Energy Security and Net Zero (DESNZ) to deliver the Local Power Plan, GBE should be at the forefront of driving the long-term growth of the local and community energy sector across the UK. This will mean supporting projects across regions, targeting those who need it most, and putting communities at the heart of a more decentralised and resilient energy system that increases our energy security. This supports a fair and equitable energy transition in the UK.

GBE’s wide-ranging support for a resilient and diverse energy system should ultimately help reduce households’ and billpayers’ exposure and vulnerability to fossil fuel markets, as part of the government’s long-term plan to protect billpayers for good.

Activities

Delivering on GBE’s objectives will require GBE to carry out the complementary package of activities set out below.

To deliver on these activities, GBE should acquire technical expertise from across the clean energy sector, establishing a highly skilled and expert workforce, led by a Chair, CEO, and Board with deep industry expertise. In doing so, GBE should seek to maximise the advantages offered by its Aberdeen headquarters, drawing on the city’s world-leading engineering expertise, skills, and knowledge to support its own scale-up and creating high-quality, well-paid jobs in Aberdeen. This will build GBE’s organisational maturity, supporting the establishment of GBE as an enduring institution beyond 2030 and directly support the growth of jobs in the UK.

Investment and development

GBE will take on a key role in the UK energy sector as a publicly owned developer, owner, and operator of energy assets. This will include leading on developing projects itself, as well as being an engaged and proactive co-developer with the private sector, public landowners, devolved and local government, community energy groups and wider public finance institutions and bodies.

As the government’s clean power developer, GBE should use its capital and expertise to drive deployment of both nascent and more established technologies required to hit Clean Power 2030 and beyond. To do this, GBE will need to take on risk – and in some cases to take on more risk than the private sector would on its own. Whilst ensuring value for taxpayers’ money, I expect GBE’s portfolio risk appetite to balance the need to quickly accelerate the pace and scale of clean power deployment with robust management of the risks inherent in developing these assets. GBE should remain alive to technological developments and develop its capacity to act with innovation and agility to seize new value opportunities.

Specifically, GBE’s investment and development activities should involve:

leading the development of clean energy assets from inception, and owning and operating these assets for the taxpayer over the long-term
co-developing, building and operating projects with partners, through equity stakes and joint ventures
investing in more developed projects that are entering construction or are already in operation, to help build GBE’s development expertise as it scales up

I expect GBE to play a key role in supporting the nascent technologies (such as those at Technology Readiness (TRL) Levels 6-9) needed for the longer term and support the rollout of established renewables needed to decarbonise the power system. Both will be critical for GBE to meet its objectives. I expect GBE to work towards building a portfolio that balances the UK’s short- and long-term clean energy needs, which also provides social value and generates a return. GBE should take a long-term view on its investment and development activity, setting the UK up to benefit from the global green industrial revolution by improving the UK’s ability to deliver clean energy, while providing high quality jobs and clean, home grown, affordable energy in the process.

Supply chains

As the UK’s strategic and connected developer of clean energy projects, GBE should facilitate the development of domestic clean energy supply chains across the UK, supporting local and economic growth.

GBE should draw upon its unique role as an energy development company at the interface of the public and private sectors, to help catalyse investment from the existing public and private finance ecosystem, to accelerate the expansion of domestic supply chain capacity.

GBE will provide direct support to build domestic clean energy supply chains through a range of financial instruments and work with HMG and relevant Public Financial Institutions to provide blended finance solutions for projects with strategic value to the UK. GBE will address critical issues faced by UK manufacturers in clean energy sectors and seek to build long-term domestic resilience and economic growth through its suite of financial products. This is core to HMG’s offer to the clean energy sector under the Industrial Strategy and the government’s missions on growth and clean energy.

In line with measures set out in the Great British Energy Act, GBE should proactively work to deliver on the government’s commitments to tackle forced labour, modern slavery and human trafficking in its business and supply chains. I expect GBE to become a sector leader in ethical supply chains, as would be expected from any company owned by the British public.

Local and community energy

It is critical that GBE drives the sustained long-term growth of local and community energy, working alongside DESNZ to deliver the Local Power Plan. Later this year, DESNZ and GBE will jointly publish the Local Power Plan which will set out our respective roles and collective mission to sustainably grow the sector. GBE’s role in the Local Power Plan will ensure the benefits of the clean energy transition flow back to the UK public, driving a significant increase in the deployment of clean power generation in communities, increasing their engagement in, ownership of and support for the transition. In parallel, DESNZ will focus on unlocking the policy and regulatory barriers to community and local energy projects necessary to deliver the Local Power Plan, working with the devolved governments on matters of devolved competence as appropriate.

In supporting delivery of the Local Power Plan, GBE should prioritise interventions to unlock the potential local and community energy pipeline in the UK, which has faced cost, capacity and capability constraints. This will further support a more decentralised and resilient energy system, enhancing the UK’s energy security.

Specifically, GBE should target support for renewable generation led by local government, mayoral strategic authorities and community energy groups – working with the devolved governments on matters of devolved competence – through offering:

capacity and capability support across these groups, utilising its in-house expertise as the UK’s publicly owned energy developer. GBE should establish a specialist advisory service to provide technical, project planning and commercial support at all stages of project development, complementing existing delivery mechanisms, including those of the devolved governments
A cohesive package of financial support, including:
- grants and loans to support projects, including at their early, riskiest stages, thereby enabling projects to develop to a point where they can attract investment from the private sector or from other public investors, such as the NWF
- entering joint ventures and equity partnerships for relevant projects
promoting shared ownership in existing or soon to be developed renewable generation

GBE should design and target its activities across the UK to take account of the existing local delivery landscape and ensure its support is additive to existing schemes and structures. It should also work closely with the devolved governments on specific matters of devolved competence.

GBE solar programme: Building on the success of the 2025/26 GBE Solar Programme, and in support of the Solar Roadmap, GBE should take advantage of further opportunities to increase deployment of renewable generation and associated technologies on public buildings.

GBE’s local investments and activities should be driven by the needs of local areas and communities, including those where the community energy sector is more nascent. This will mean engaging with communities directly, as well as taking account of Regional Energy Strategic Plans, Local Area Energy Plans, and the energy and industrial strategies of the devolved governments where these exist.

Principles for intervention

GBE should seek to ensure that its portfolio of activities and investments is additional.

This means that GBE should consider how each of its activities generate social value which would not have occurred in its absence. Different activities will increase social value in different ways. These could include, but should not be limited to:

a contribution to improved project outcomes (for example, mobilising private finance into a project, accelerating project delivery, increasing project scale)
distributional outcomes (for example, improving community benefits from clean energy projects)
market outcomes (for example, increasing market confidence and liquidity, improving supply chains and technology readiness); and
outcomes which further GBE’s strategic objectives (for example, helping it evolve into a developer, owner and operator of energy assets)

For GBE’s commercial activities, GBE should build a balanced portfolio of activities and investments that are aligned with the objectives set out in this document. At a portfolio level, GBE’s commercial activities should generate a positive return that can be reinvested to deliver public benefits in the UK that would not have been created in GBE’s absence. Becoming financially self-sustaining is GBE’s long-term goal. Not all of GBE’s projects will generate a positive return, but by 2030 GBE should start to make a portfolio-level return from its commercial activities in support of its longer-term goal to be profitable and its wider policy objectives. These returns should be part of a clear path towards profitability, and I expect GBE to have a plan for becoming self-financing in place by 2030.

In the first instance, GBE should use the above principles to measure success and evaluate the impact of its activities. However, as it scales up, I would expect GBE to develop a clear set of principles for intervention, including an overarching, shareholder-approved strategy, and an impact and performance framework, with a full definition of additionality to inform how and why it is intervening in the market.

Governance

GBE should build a robust and effective corporate governance framework and be able to demonstrate effective governance and adherence to corporate transparency principles. This extends to and includes relevant governance frameworks, regulations and guidance which relate to environmental and human rights impacts, anti-bribery and corruption, biodiversity and sustainability, community benefits, and workers’ safety, protection, and rights.

As we will set out in GBE’s Framework Document, GBE’s Board are responsible for establishing and taking forward the strategic aims and objectives of Great British Energy consistent with its overall strategic direction and within the policy and resources framework determined by the Secretary of State and in part set out in this document.

Communications between GBE’s Board and the responsible minister should normally be through the Chair. This will be supplemented by a regular programme of engagement with DESNZ as the sponsoring department.

Partnerships and collaboration

In delivering these priorities, GBE will work collaboratively and in partnership with investors, industry, the devolved governments, local government, communities, and other public sector organisations and relevant regulators. This should also include, for example, partnering with public landowners to develop renewable energy on their estate. Achieving our Clean Power and Net Zero targets, having greater control over our own energy resources, and increasing our energy independence are significant challenges for the whole of the UK and addressing these will require a collective effort.

Wales

In Wales, GBE should continue to progress a partnership with Trydan Gwyrdd Cymru to expand deployment on the Welsh public estate. This should complement GBE working with other Welsh public sector bodies and finance institutions, as well as public sector support mechanisms, such as Ynni Cymru and the Welsh Government Energy Service to identify further opportunities for collaboration, supply chain development, and the expansion of the local and community energy sector. In seeking to harness existing expertise and market knowledge, GBE will be able to deliver quickly and effectively, maximise opportunities presented by collaboration, and deliver maximum impact, synergies with other public interventions, and value for money from Welsh projects. By adopting the approaches outlined in this Statement of Strategic Priorities, GBE will support the wider strategic vision and aims of the Welsh Government as well as those of the Westminster government.

Scotland

In Scotland, GBE should take forwards progress made on implementing the Vision Statement, signed by the UK and Scottish governments, on partnerships with Scottish public bodies, finance institutions, and schemes, such as the Scottish Government’s Community and Renewable Energy Scheme (CARES). This will seek to ensure its activities are aligned to relevant devolved strategies and policy frameworks. I expect GBE to continue working with other relevant organisations to identify opportunities for clean energy deployment in other sectors, working collaboratively with Scottish public bodies to harness existing expertise and market knowledge, avoid crowding out previously agreed investment, increasing investment in the clean energy supply chain and local and community energy sector. In doing so, GBE will be able to deliver quickly and effectively, maximise opportunities presented by collaboration, and deliver maximum impact, synergies with other public interventions, and value for money from Scottish projects.

Northern Ireland

GBE should recognise Northern Ireland’s distinct energy landscape and should take a tailored approach to its operation there. GBE should support the development of pathways that deliver a resilient, low-carbon energy system and drive inclusive economic growth in Northern Ireland. I expect GBE to support Northern Ireland’s statutory clean energy targets and act in a way which helps to deliver project, distributional, and market outcomes that are specific to its energy system, such as by considering the Northern Ireland energy system’s current level of development. GBE should consider the specific expertise required to navigate the Northern Ireland energy system when establishing its skilled and expert workforce and may wish to build relationships with the Northern Ireland Executive and other relevant public bodies to support its work.

National Wealth Fund

GBE should work in partnership with the NWF. The combination of GBE and the NWF’s expertise will provide a strong end-to-end clean energy development and financing offer. The 2 organisations will work closely together to support GBE to establish itself quickly, as a publicly owned clean energy company, drawing on the NWF’s experience as an investor. Both GBE and NWF should work to operationalise their relationship and communicate this clearly to the market.

Great British Energy - Nuclear

Great British Energy and Great British Energy – Nuclear (GBE-N) will operate as 2 separate and allied publicly owned companies with a shared mission to accelerate the deployment of clean energy assets. GBE will work in alignment with GBE-N, which will continue to bring the specialist capability and skills necessary to help deliver the government’s nuclear programme, including the Small Modular Reactor programme.

The Crown Estate

GBE should continue to work in partnership with The Crown Estate (TCE) to accelerate and de-risk the deployment of new and existing technologies. I expect the GBE:TCE partnership to speed-up the sustainable delivery of clean energy and other technologies, supporting UK supply chains and delivering more value to the public, whilst supporting a Net Zero and energy secure future that delivers good jobs and economic growth. This should include working together to co-ordinate agencies and stakeholders to help meet GBE’s mission.

Private sector stakeholders

GBE should capitalise on its unique position as a developer at the interface of the public and private sectors to become a trusted advisor to government while seeking to build confidence and direction in the market. GBE should do this by providing a clear demonstration of the government’s commitment to clean energy and individual sectors, helping to crowd-in private investment in service of our energy goals.

Statement of Strategic Priorities to Great British Energy (HTML)

Ministerial letter