The Great British Energy Act received Royal Assent on 15 May 2025, formally establishing Great British Energy (GB Energy) as a publicly owned and operationally independent clean energy company1. The Act followed the government's December 2024 Clean Power 2030 Action Plan, which set out its strategy for decarbonising electricity supply1.
GB Energy does not supply electricity directly to households2. Its stated role is to work with the private sector to co-invest in emerging energy technologies, including green hydrogen, floating offshore wind and tidal power, and to scale investment in mature technologies such as onshore wind, solar and nuclear2. The company has five stated functions: developing clean energy projects through a partnership with the Crown Estate, investing in and owning renewable energy projects, incentivising local power through the Local Power Plan, building UK clean energy supply chains, and working with Great British Nuclear on new nuclear projects2.
The comprehensive spending review in June 2025 confirmed GB Energy would have £8.3 billion to invest2. The government has said this funding will come from an increased windfall tax on oil and gas companies, contributing £1.2 billion over the course of the parliament, and from responsible borrowing2. By May 2026, GB Energy had announced £700 million of funding for clean energy supply chains, bringing total committed funding to £1 billion, and had invested £10 million into supporting new clean power projects2. In June 2025, 11 schools in England installed solar panels as part of a rooftop solar rollout, which is set to save those schools £175,000 a year2.
The government's stated initial aims for GB Energy were to lower energy bills for every household by an average of £300 a year, increase energy security by reducing reliance on imported fossil fuels, deliver green electricity by 2030, and create thousands of jobs2. The proposed Local Power Plan would see GB Energy partner with local communities to develop renewable energy projects generating up to eight gigawatts, though no firm commitment has been made on what proportion of the £8.3 billion will go to that plan2.
"GB Energy won't supply electricity directly to households."
Why it matters for households
GB Energy is a public investment vehicle rather than an energy supplier, so it does not change who bills a household or what tariff applies2. Its relevance to a home's energy independence is indirect: it invests in generation and supply chains intended to increase the share of UK-produced clean electricity on the grid, which the government links to reduced reliance on imported fossil fuels2. The £300 average annual household saving cited by the Energy Saving Trust was an initial aim set out at the company's creation, not a confirmed outcome2. The Climate Change Committee's June 2026 progress report said the government "is not moving fast enough to reduce greenhouse gas emissions and protect households and businesses from volatile fossil fuel prices", and called for a "more ambitious plan to electrify" the country1. The committee concluded the UK could still meet its emissions targets and remain on track for net zero by 2050, but that significant risks remained without urgent policy action1.
What happens next
The Department for Energy Security and Net Zero was to publish a statement of strategic priorities for GB Energy in 2025, with the company then publishing its own strategic plan in response, alongside a framework document explaining how the two organisations work together2. The government has not yet responded to the CCC's June 2026 progress report, but has said it will publish a new delivery plan setting out how it will meet the reductions required for the seventh carbon budget1. Following parliamentary scrutiny, that budget was agreed in both Houses, committing the UK to emissions reductions of 87% from 1990 levels by 20421.
Sources2 cited
- [](https://researchbriefings.files.parliament.uk/documents/CBP-9888/CBP-9888.pdf), researchbriefings.files.parliament.uk
- Great British Energy: 12 months on - Energy Saving Trust, energysavingtrust.org.uk