Great British Energy (GBE) has set out its “strategic plan” with critics of the Net Zero policy concerned that jobs in the green energy sector are not being created quickly enough to stem an exodus from oil and gas.
Amid mounting pressure on ministers for a more balanced energy policy, the plan includes a commitment to creating 10,000 clean energy jobs over five years, though industry experts say 1,000 are being lost in oil and gas every month, or 12,000 a year.
The plan was published as the main backer for the north east carbon capture and storage system said it was selling its stake, a move described by energy business leader Sir Ian Wood as “deeply concerning”.
Publicly-owned GB Energy, set up by the UK government, is under orders to ramp up investment which began in earnest earlier this month with support for a floating offshore wind project alongside the Scottish National Investment Bank (SNIB) and the National Wealth Fund. Each is providing up to £50 million for the Pentland Floating Offshore Wind Farm north of Dounreay.
The plan targets £15 billion of private investment over time and at least 15 GW of clean energy generation and storage assets – enough to power the equivalent of almost 10 million homes
GBE CEO Dan McGrail is having to shake off claims by GBE chair Juergen Maier last year that the Aberdeen headquarters would employ 1,000 staff and there is no mention in today’s report of how many people it will employ, nor where its offices will be.
He told a House of Commons committee earlier this month that there are currently nine permanent employees in the HQ with 15 on loan from other government departments.
He said 96 roles were currently being recruited. He expects there to be about 100 staff in a year’s time of which 72 will be in Aberdeen, and 300 by 2030. The HQ will be in the centre of the city, said Mr McGrail, with “satellite” offices elsewhere.
Today’s report merely states that: “Aberdeen is our corporate backbone, with the majority of our employees located here, forming the strategic driving force of GBE from a modern, dynamic site in the centre of the city.
“We will explore satellite offices beyond Aberdeen to ensure we can bring the best of Scotland’s energy talent to complement the heart of our activities in Aberdeen.”
There will be encouragement for more community ownership of renewable generation projects where the profits or savings can be reinvested into local areas.
By supporting community energy projects and expanding public participation, it hopes to support 1,000 local jobs.
Energy markets shake up
Regulator Ofgem has announced the go-ahead for investment in the electricity grid as part of a shake-up of how Britain’s energy market operates.
Most of the funding in energy regulator Ofgem’s five-year plan will go towards maintaining gas networks, but £10.3bn will be used to strengthen the electricity transmission network.
The announcement prompted claims and counterclaims about its impact on households.
Energy Secretary Ed Miliband’s pledge to cut household energy bills by £300 a year by 2030 was drawn on a report by the energy think tank Ember in 2023 based on the UK generating almost all of its electricity needs from renewable sources by 2030. That would cut the average household power bill from £1,127 at the time to £828 a year.
However, by the time Labour made its pledge in early 2024 the war in Ukraine had thrown the forecasts off course. At the same time, rising capital costs saw the price of new offshore wind contracts increase.
The latest challenge to reducing the price is that consumers are paying to generate electricity based on the price of gas while also paying for the cost of the transition – effectively paying twice.
The Institute for Fiscal Studies has said additional costs are eroding the savings announced by the Chancellor. There will be new levies to pay for projects such as nuclear expansion.
Ben James, an independent energy analyst, found that even after the taxpayer-funded £150 subsidy, average bills were now likely to reach £1,045 in 2030 — £139 more than they were in 2024 when Labour came to power.
Ofgem insists that household bills will only rise by £30 a year, as the investment will help lower the reliance on imported gas and make wholesale energy cheaper.
ScottishPower chief executive Keith Anderson said that bills will be cut by £150 in April, as announced by the Chancellor, and that as grid expansion avoids the need to switch of wind turbines bills will fall further.
“Overall, we will end up with a cheaper system,” he said.
“This will be the biggest wave of investment in our electricity infrastructure since it was built by our grandfathers back in the 1950s and it will give us a system that is fit for purpose for the country for the 21st century.”
Ofgem chief executive Jonathan Brearley said the investment “will keep Britain’s energy network among the safest, most secure and resilient in the world”.
The five-year plan covers maintenance and expansion of the network and the move away from a reliance on volatile international gas prices.
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