Mar 7, 2025
The UK Treasury is considering reducing financial support for GB Energy.
The UK's Treasury department is considering reducing funding for the state-backed power company GB Energy in a spending review scheduled for June, according to a report by the Financial Times on Friday.
Last year, the British government established GB Energy with a backing of 8.3 billion pounds ($10.73 billion), intending for it to be the main vehicle to promote investment in renewable energy.
The company was expected to collaborate with the Crown Estate, which manages the British monarch's public assets, to advance 20-30 gigawatts of new offshore wind projects to the seabed lease phase by 2030.
The UK Treasury and the country's energy department did not respond immediately to a request for comment from Reuters. GB Energy was also unavailable for comment at that time.
One of the options under consideration by the Treasury includes cutting the 3.3 billion pounds that had been allocated for low-interest loans through local authorities for projects like rooftop solar panels and co-ownership wind initiatives, as reported by the newspaper.
This proposed funding cut comes as Britain aims to significantly decarbonize its power sector by 2030 by decreasing its dependence on gas-fired power plants and rapidly boosting its renewable energy capacity.
In January, Britain's deputy finance minister Darren Jones stated that the government would conduct its first zero-based spending review in 17 years. Financial support will only be given to departments that meet the criteria outlined in the zero-based government spending review.
Last year, the British government established GB Energy with a backing of 8.3 billion pounds ($10.73 billion), intending for it to be the main vehicle to promote investment in renewable energy.
The company was expected to collaborate with the Crown Estate, which manages the British monarch's public assets, to advance 20-30 gigawatts of new offshore wind projects to the seabed lease phase by 2030.
The UK Treasury and the country's energy department did not respond immediately to a request for comment from Reuters. GB Energy was also unavailable for comment at that time.
One of the options under consideration by the Treasury includes cutting the 3.3 billion pounds that had been allocated for low-interest loans through local authorities for projects like rooftop solar panels and co-ownership wind initiatives, as reported by the newspaper.
This proposed funding cut comes as Britain aims to significantly decarbonize its power sector by 2030 by decreasing its dependence on gas-fired power plants and rapidly boosting its renewable energy capacity.
In January, Britain's deputy finance minister Darren Jones stated that the government would conduct its first zero-based spending review in 17 years. Financial support will only be given to departments that meet the criteria outlined in the zero-based government spending review.