Those who feared or welcomed a nationalisation of the UK’s energy industry – caught up in the momentum behind talks of re-nationalisation of the rail and water industries perhaps – can put these fears or hopes on ice, as the existing industry will continue unscathed. Instead GB Energy is merely a new kid on the block, designed to accelerate development in a greener direction.
This is why I believe the policy is full of both danger and hope. The hope clearly comes from improved investment in renewable electricity generation capacity. But as Len Williams outlines in his article (see p22), it is as much about progress in newer technologies. There has been a feeling within the industry that some technologies have suffered due to the success of others. Specifically, wind and solar energy can now be generated on a basis that is cost competitive with fossil fuels. But the path to get to this point has been heavily subsidised, and having reached this point funding for alternative technologies has dried up.
Also, having done the developmental heavy lifting in the wind industry, much of the commercial benefit has since been realised by companies from Denmark, Germany, China and others.
So perhaps the launch of GB Energy will rectify both of these situations by realising the opportunities offered by other technologies. I’m thinking principally of tidal and wave power – resources that the UK has in abundance. Tides are entirely predictable, unlike other renewable sources, and waves are virtually limitless. While these technologies are currently relatively expensive, GB Energy has the potential to bring costs down with the right investment and development programme.
But there is also a danger for the Labour Party. Skills development, grid infrastructure (see p28) and localised renewable schemes – as well as the technological advances – all could be guided by the new body. But while I think GB Energy is a great idea in theory, if it fails to make a difference then it will represent a huge missed opportunity – and this Labour government will get the blame.
