Great British Energy: What Does It Mean for Rural Areas

The government has announced new details regarding Great British Energy (GBE), a publicly-owned company aimed at advancing clean energy deployment and enhancing energy security across the UK.

Great British Energy has been established with a capitalisation of £8.3 billion over this Parliament. The company's primary goals include increasing clean energy production, enhancing energy security, and creating sustainable jobs. Headquartered in Scotland, GBE will focus on both mature and emerging energy technologies, such as offshore wind, hydrogen, carbon capture, and tidal energy. The government emphasises that this initiative is crucial for reducing reliance on fossil fuels and addressing the energy crisis.

Rural areas, which encompass a significant portion of England's land and population, are critical to the UK's clean energy transition. These areas offer vast natural resources suitable for green energy projects. However, rural communities also face distinct challenges, such as inadequate energy infrastructure and higher energy costs compared to urban areas. For instance, the average annual energy cost for a dwelling in predominantly rural areas was £815 in 2021, 13% higher than in urban areas.

GBE's strategy includes the Local Power Plan, which aims to develop small and medium-scale renewable energy projects with local community involvement. This approach could decentralise energy generation and potentially bring economic benefits to rural areas, although detailed plans and their implementation will be crucial to realising these benefits.

To ensure that rural communities are not overlooked in the rollout of Great British Energy, the RSN‘s Delivering for Rural campaign continues to advocate for the following actions:

  • Fair Funding for Rural Energy Infrastructure: There needs to be substantial investment in upgrading rural energy infrastructure, including expanding electric vehicle charging networks and enhancing the electricity grid to support increased demand from electric vehicles and heat pumps.
  • Support for Renewable Energy Projects: The government should provide grants and incentives to encourage the development of renewable energy projects in rural areas, particularly community-owned energy schemes that can help reduce local energy costs.
  • Addressing Fuel Poverty: Implement targeted measures to mitigate fuel poverty in rural areas, where 16% of households are affected. This could include retrofitting homes with energy-efficient technologies and providing subsidies for heating costs.
  • Promotion of Green Jobs: Invest in training programmes to equip rural residents with skills for jobs in the green energy sector, aiding in the economic revitalisation of rural communities.
  • Ensuring Local Benefits from Renewable Energy Projects: It is essential that the expansion of onshore wind and solar farms in rural areas delivers tangible local benefits. This can include revenue-sharing agreements and local job creation initiatives.

Read GB Energy’s Founding Statement HERE.

While the establishment of Great British Energy marks a significant step forward in the UK's clean energy transition, it is essential to remain cautious and seek further details on how this initiative will be implemented, particularly in rural areas. The RSN will continue to monitor developments and advocate for policies that ensure rural communities are integral to achieving the nation's net zero goals.

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