Union chiefs have called on Sir Keir Starmer to “break with repeated government failures” as Labour touts plans for Scotland to keep hold of its energy wealth and kickstart 8GW of cheaper, cleaner power by 2030.
Labour has committed to set up GB Energy, a publicly-owned energy company, as part of its £28 billion green investment plans if the party forms the next UK government after this year’s general election.
The party claim the proposals will save Scottish households £8.4 billion on energy bills by 2030.
GB Energy will be headquartered in Scotland, with Labour’s shadow climate change secretary Ed Miliband stating Aberdeen would have a “strong claim” for the base, given its energy legacy.
Labour’s plans aim to set up a publicly-owned clean energy company that the party boldly claims will “harness the power of Britain’s sun, wind, and waves to cut energy bills and deliver energy security for our country”.
Read more: Analysis: Will Labour keep promise of 50k Scottish clean energy jobs?
The initial task of the company will be to “co-invest in leading-edge energy technologies where this can de-risk and unlock private sector investment” to scale up the production of renewables.
Labour’s “local power plan” will support the “development and scaling of municipal and community energy”.
The party has looked to similar schemes in other European countries to base the model on by setting up a “domestic champion” for energy.
The ambitious blueprint “will save UK households £93 billion over the rest of this decade”, according to party bosses, including £8.4 billion for Scottish households.
The plans also attempt to put right criticism thrown at the Scottish Government in recent years over its industrial and energy strategy.
SNP ministers have been accused of failing to ensure the Scottish economy benefits from the scaling up of renewables and clean technologies.
Read more: SNP and Greens further delay 'urgently-needed' energy skills passport
In 2009, then first minister Alex Salmond boldly claimed that Scotland would become “the Saudi Arabia of renewables”.
But green jobs targets set by SNP ministers have fallen short.
In 2010, the Scottish Government pledged that 130,000 green jobs would be tallied up by 2020 but Office for National Statistics (ONS) figures showed there were only 21,700 “low-carbon and renewable energy” jobs in Scotland in 2020.
Sir Keir has suggested that his strategy will create up to 50,000 jobs in Scotland by 2030.
The SNP has also failed to deliver its pledge of setting up a public energy company, which Labour hope GB Energy will rectify - while Labour will be open to some new nuclear power, a technology opposed by the SNP.
Labour chiefs have insisted the party’s plans for GB Energy will eventually “become an important tool in making the UK a clean energy superpower”.
The party has warned that “currently, many of the profits from our own renewable assets are offshored to foreign governments”, with Labour insisting “the power we produce also contributes to our national prosperity and economic renewal”.
GMB Scotland, which represents energy workers, has called on government, north and south of the Border, to build industrial strategies capable of harnessing offshore skills and experience to propel the drive to renewables.
Claire Greer, GMB Scotland organiser in energy, welcomed Labour’s plans for GB Energy after what she claimed has been years of empty promises of new jobs in the transition to net zero.
She said the national energy company must have a clear purpose to provide the confidence and leadership needed to assemble the public and private investment required to drive forward the energy transition.
She said: “An incoming Labour government has a unique opportunity to offer an ambitious and real-world vision for the future of UK energy as we transition to net zero.
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“Delivering this essential change will require both public and private investment, and this can only come if there is confidence that robust industrial strategies are in place.
“In many respects, this proposal for GB Energy demonstrates that responding to today’s and future energy challenges requires a break with repeated government failures that have left the country dangerously vulnerable to international events.
“To ensure GB Energy delivers the transition to net zero and secures the supply and security we need, it must listen to and learn from the workers and industries with the skills, knowledge and resources to make it a reality.”
Scottish Labour net zero and energy spokesperson, Sarah Boyack, said: “Labour will deliver a publicly-owned GB Energy company based in Scotland and unleash the country’s potential as a clean energy superpower.
“Where the SNP and the Tories have failed, Labour will deliver – creating green jobs, ensuring communities in Scotland feel the benefit of our vast natural resources and insulating homes.
“These game-changing plans will lower bills, create jobs, deliver energy security and help us tackle the climate emergency.”
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