On May 15, 2025, the UK government marked a historic milestone in its environmental policy with the enactment of the Great British Energy Act 2025. This legislation, which has now received Royal Assent, officially establishes Great British Energy (GBE)—a publicly owned energy corporation designed to spearhead the country’s transition to clean and renewable power.
The Act represents a bold intervention in the UK’s energy sector, emphasizing public ownership as a core strategy in meeting net-zero emissions targets. The initiative will be overseen by the Department for Energy Security and Net Zero, headed by Ed Miliband. GBE will focus on strategic investments in clean infrastructure projects, renewable technologies, and the enhancement of national energy security.
A key goal of GBE is to accelerate the deployment of low-carbon solutions including wind, solar, and hydrogen, while fostering innovation in sustainable energy storage and grid resilience. In aligning with broader European trends, the UK is positioning itself as a leader in green growth. According to the International Energy Agency, renewables accounted for nearly 38% of global energy supply growth in 2024—a signal that clean energy is rapidly reshaping international markets.
Market reactions to the announcement have been largely positive. Renewable energy stocks on the UK exchanges saw an approximate 2% increase following the news. Companies involved in hydrogen production and offshore wind development were particularly buoyed by the anticipated influx of government funding and project support.
However, the launch of GBE has not been without criticism. During its passage through Parliament, the legislation was amended to include clauses that mandate anti-slavery and ethical labor practices in all projects financed by the agency. Transparency and governance will be crucial in ensuring the credibility and effectiveness of GBE, especially given concerns over public accountability and long-term fiscal responsibility.
Despite these concerns, the creation of Great British Energy underscores the UK’s commitment to a state-led approach in combating climate change. It marks a transformative moment in energy policy, reflecting a broader shift toward sustainable development and economic modernization through public enterprise. GBE is poised to become a cornerstone of the UK’s climate strategy, reinforcing its international credibility as a climate leader while offering a model for other nations pursuing energy transitions of their own.
