Great British Energy funding shifts to nuclear and grid projects
The state-owned company’s original £8.3 billion budget is being used for projects beyond its initial focus on owning and operating clean power generation.
Britain has redirected £2.5 billion originally allocated to Great British Energy towards nuclear development, while Prime Minister Andy Burnham has pledged to use some of the company’s funding for a new electricity grid venture.
Former Chancellor Rachel Reeves reassigned the nuclear funding to support the design of small-scale power plants and preparations for their sites. Meanwhile, funding for the company’s Local Power Plan, including solar installations at schools and hospitals, was set at £1 billion, down from an initially proposed £3 billion. Another £1 billion has been earmarked for clean energy supply chains.
Burnham announced Great British Grid at Labour’s annual conference as a unit within Great British Energy. Energy Secretary Miatta Fahnbulleh said it would invest alongside existing network operators, with the aim of reducing costs and accelerating grid construction.
The changes have drawn differing responses. Energy UK chief executive Dhara Vyas questioned the case for public grid investment when transmission operators are already spending tens of billions. Labour MP Bill Esterson, who chairs parliament’s Energy Security and Net Zero Committee, argued that the new unit could support infrastructure where network companies were not delivering.
