THE legislation to create GB Energy will be introduced at Westminster on Thursday, with Labour ministers claiming it will secure Scottish industries like offshore wind and hydrogen.
Further details of the publicly-owned company are set to be announced alongside the publication of the bill, although where it will be based is still being kept hidden by the Labour Party.
UK ministers have been in talks with the Scottish Government and Crown Estate Scotland on how GB Energy can help development and investment north of the Border.
They say a new partnership with the Crown Estate could leverage private investment of £60 billion into the UK’s energy infrastructure.
Thursday’s legislation will set out GB Energy’s objectives and ensure it has access to funding. The UK Government said GB Energy will have five key functions, including project investment and building up supply chains.
Capitalisation of £8.3 billion has been promised in the current parliamentary session, a figure which Professor Paul de Leeuw from the Robert Gordon University Energy Transition Institute has said is not enough to achieve net zero.
The Scottish Government has said there is a “great deal” of agreement on how GB Energy should work moving forward, but added that a key divergence was on nuclear power.
Labour have been keen to build nuclear stations, with Scottish Secretary Ian Murray previously refusing to rule out building new plants north of the Border – ignoring that planning is devolved.
But the SNP said they have been pushing for any funding earmarked for nuclear to instead be allocated to more renewables.
Ahead of the bill’s introduction, Prime Minister Keir Starmer said: “Scotland will lead the clean energy revolution in the United Kingdom, fuelled by the skills, knowledge, and talented workforce the energy sector here contains.
“That’s why we’re headquartering GB Energy in Scotland, and today’s announcement takes us a step closer to achieving that.
“Clean energy by 2030, cheaper bills, and good jobs across the country.”
The Scottish Government’s acting Energy Secretary Gillian Martin said she welcomed the recognition of Scotland’s role in renewable energy.
She said: “In our initial engagements with the UK Government, we have made clear our expectations that GB Energy must deliver real benefits for the people of Scotland and support our ongoing efforts for a just transition and to reach net zero by 2045.
“Whilst there is a great deal of agreement between the two governments on many of the priorities that have been identified, one area where we diverge is on new nuclear power stations.
“We are clear that UK Government’s intended investment in nuclear should instead be used to bolster further renewables.”
Scottish Secretary Murray said: “Scotland is the powerhouse of our clean energy mission and Great British Energy will drive forward investment in home-grown energy production and provide benefits to bill payers.
“Greater energy security through Great British Energy will mean less reliance on overseas fossil fuels, boosting our economy and creating more jobs.”
He added: “I am pleased we are working closely with the Scottish Government to ensure these benefits are felt by people right across the UK.”
Scottish Conservative energy spokesperson Douglas Lumsden claimed that the GB Energy bill would show Labour “are abandoning north-east Scotland, decimating both the local economy and our energy security”.
He went on: “Ed Miliband has already revealed his intention to accelerate Labour’s block on new North Sea oil and gas licences, despite the tens of thousands of jobs this will jeopardise and the fact that it will force us to import expensive fossil fuels from overseas with a far higher carbon footprint.”
Lang Banks, director of WWF Scotland, said: “We look forward to seeing the details of the announcement.
“However, anything that can help accelerate the rollout of cleaner renewables and bring more jobs to this country would be welcomed.”
