King Charles set for money enhance after backing Labour’s new power agency
The King is in line for a cash boost after partnering with Labour’s new Great British Energy company.
The unprecedented deal between the publicly owned firm – a key component of Labour’s election manifesto – and the Crown Estate could leverage £60billion of private investment into the UK’s energy infrastructure.
Labour said the deal is part of efforts to ‘speed up the transition away from fossil fuels and towards home-grown, clean energy’.
The King is an avid supporter of both onshore and offshore wind power.
The monarchy is entitled to receive 12 per cent of all profits from the Crown Estate under the new terms of the arrangement known as the Sovereign Grant, which supports the activities of the Royal Family. The rest is kept by the Treasury.
King Charles III (pictures smiling at the Senedd on July 11) is set for a cash boost after teaming up with Labour’s new Great British Energy company
The deal between the publicly owned company and the Crown Estate could leverage £60billion of private investment into the UK’s energy infrastructure (pictured: Keir Starmer at No. 10 Downing Street)
The monarchy was previously entitled to keep 25 per cent of profits, but this was reduced last year because of the rising income from the Crown’s new offshore wind deals. Similar adjustments could be made in future.
The Crown Estate has a £16billion portfolio of land and seabed.
It is estimated the partnership will lead to up to 20-30GW of new offshore wind developments – enough power for the equivalent of almost 20million homes.
The full details are expected to be laid out soon, and legislation to create GB Energy will be introduced at Westminster today.
It will set out the company’s objectives and ensure it has access to funding, with £8.3billion promised in the current parliamentary session.
The Government said the Crown Estate will also bring ‘long-established expertise to the partnership’, while GB Energy will add ‘critical strategic industrial policy’ and its own ability to invest.
It is understood GB Energy will initially focus on project development and investment but could become an operator of individual windfarms.
The Government said the partnership will boost Britain’s energy independence by investing in homegrown power, and with accompanying reforms to policy, cut the time it takes to get offshore wind projects operating and delivering power to homes by up to half.
The monarchy was previously entitled to 25 per cent of profits of Crown Estate profits but this has since been reduced (stock image of Gunfleet Sands’ offshore wind farm)
The deal between Labour and the monarchy has been struck in a bid to ‘speed up the transition away from fossil fuels’ and towards green energy (pictured: Sir Starmer visiting the Beatrice wind farm off the Caithness Coast)
It wants to reach seabed lease stage by 2030, although the agreement will need significant investment in order to begin generation as quickly.
It comes soon after the Energy Secretary Ed Miliband scrapped the ban on onshore wind and unblocked the production of cheap solar energy.
Prime Minister Sir Keir Starmer said: ‘My government is laser focused on delivering change, to make people better off.
‘This innovative partnership between Great British Energy and the Crown Estate is an important step toward our mission for clean energy by 2030, and bringing down energy bills for good.
‘This agreement will drive up to £60 billion in investment into the sector, turbocharging our country toward energy security, the next generation of skilled jobs, and lowering bills for families and business.
‘My mission led government is rolling up our sleeves to deliver for Britain..’
Mr Miliband said the agreement with the Crown Estate ‘will lead to more investment, cleaner power, more energy security, and is a statement of intent that it will be a permanent and transformative institution for our country’.
Energy Secretary Ed Miliband (pictured at a cabinet meeting on July 23) scrapped the ban on onshore wind and unblocked the production of cheap solar energy
Shadow energy security secretary, Claire Coutinho (pictured at Media City in Salford on July 4) dubbed Labour’s energy firm a ‘gimmick’ and said it would ‘end up costing families’
The Crown Estate said the partnership will ‘drive greater investment into this future for our country, and with it support nature recovery and job creation’.
Profit from the Royal Family’s land and property holdings more than doubled to a record £1.1billion last year, driven by a short-term boost from offshore wind farms.
The Crown Estate said earnings surged by more than £658million during the year ending March 31, from £443million the previous year, according to figures released this week.
Claire Coutinho, the shadow energy security secretary, said GB Energy was ‘nothing but a gimmick that will end up costing families, not cutting bills’.
