Great British Energy (GBE) Act Becomes Law

In May 2025, the Great British Energy Act received Royal Assent, formally enshrining GBE as a publicly owned, operationally independent energy company.

Under the new law, the Secretary of State can designate a company as “Great British Energy,” so long as it is wholly owned by the Crown.

The Act mandates GBE’s objects to include facilitating, participating in, and investing in clean energy production, distribution, storage, and supply, as well as reducing greenhouse gas emissions and improving energy efficiency

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The government has committed £8.3 billion over this Parliament to capitalise GBE and help catalyse clean energy deployment across the UK. In its early phase, GBE is launching £200 million in funding focused on rooftop solar and community-scale renewables (schools, hospitals, local projects) - with schemes already rolled out in England, Scotland and Wales. GBE is also targeting support for domestic clean energy supply chains, having committed initial funding for offshore wind component manufacturing in the UK.

One important requirement: by 2030, GBE is expected to be self-financing through its commercial activities, with profits reinvested into further clean energy projects and public benefit. The government must also publish a Statement of Strategic Priorities for GBE, which it will respond to in its own strategic plan.

However, the beginning has not been without controversy or challenges. In June 2025, the Chancellor reallocated £2.5 billion of GBE’s planned funds to a renamed body, Great British Energy – Nuclear, to support small modular nuclear reactors - reducing GBE’s direct capital for renewables. Critics argue this constrains GBE’s ability to scale rapidly in renewables. Meanwhile, questions have been raised about the pace of funding and whether GBE can meaningfully impact electricity supply or prices in the near term - for example, the first two-year budget allocation was relatively modest.

What to Watch / What It Means

• Whether GBE becomes a material player owning and operating significant renewable generation assets - or remains more of a catalytic funder/co-investor.

• How it balances public mission (jobs, community benefit, local energy) with commercial returns and self-financing pressures.

• Its interactions with the private sector (will it compete, partner, co-invest, or push innovation?).

• The impact of the reallocation toward nuclear - does it dilute GBE’s renewables mandate or support broader clean energy goals?

• Whether GBE can unlock new grid, planning or financing models, particularly for hard-to-reach areas or nascent technologies (floating wind, long-duration storage, local energy schemes).