Britain's New State-Backed Power Company Partners with Crown Estate to Boost Clean Energy Projects

British government announces partnership between its new state-backed power company, GB Energy, and the Crown Estate. The collaboration aims to accelerate investment in clean energy projects, particularly offshore wind farms. The initiative targets generating 20-30 gigawatts of new wind capacity by 2030, potentially powering 20 million homes.

Britain's new state-backed power company, GB Energy, will collaborate with the Crown Estate to enhance investment in clean energy projects, the government announced on Thursday.

According to the agreement, the Crown Estate will establish a new division to work with GB Energy, marking its first involvement in developing offshore wind farms. This venture could attract between £30 billion to £60 billion in private investment. The Crown Estate forecasts that the partnership could help achieve up to 20-30 gigawatts of new offshore wind developments by 2030, sufficient to power nearly 20 million homes.

'The agreement with the Crown Estate will lead to more investment, cleaner power, and demonstrate our commitment to transforming the energy sector,' stated Ed Miliband, the Minister for Energy Security and Net Zero. The new Labour government aims to decarbonize the electricity sector by 2030, necessitating a rapid increase in renewable power capacity.

On Thursday, the government is set to propose legislation enabling the creation of GB Energy, backed by £8.3 billion. The Crown Estate, an independent commercial entity managing large tracts of land and most of Britain's seabed, has previously auctioned seabed leases but has not participated in their development. Its profits contribute to the Treasury and set public funding levels for the Royal Family.

Despite being the world's second-largest offshore wind market, Britain faces challenges like rising costs and supply chain bottlenecks. Last week, the government suggested allowing the Crown Estate to borrow funds, enhancing its flexibility in supporting renewable projects. The Crown Estate reported record profits from offshore wind seabed leases on Wednesday.

(With inputs from agencies.)