The decision to locate Great British Energy in Scotland will boost job creation, economic growth, and energy security, Scottish business leaders have declared.

However, a significant number have expressed concern over how the state-backed company will be funded and cast doubt on whether it will lead to lower energy bills for households and businesses.

The announcement by the UK Government that GB Energy, which will have a remit to harness investment in clean energy technologies, in Aberdeen has been seen as a vote of confidence in the north-east economy, amid concern the decline of oil and gas production in the North Sea will lead to major job losses. The business community in the north-east has long argued that skills used in the North Sea can adapted to support the development of new energy systems that will be crucial to meeting the country’s net-zero targets.

That hope looks to have been reinforced by a survey of Scottish business leaders carried out by international law firm Womble Bond Dickinson, which found 81% of respondents believe that GB Energy’s presence will positively impact the economy in Scotland.

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The survey revealed that 61% of those polled expected “significant” job creation in the renewable energy industry, while 54% believe it is “likely” that GB Energy will reach its target of creating 650,000 jobs by 2030. Furthermore, 54% foresee benefits to local businesses and suppliers, half anticipate increased investment in Scotland’s clean energy potential, and 48% said they expect the presence of GB Energy to bolster energy security and stability.

However, the survey also found a “clear generational divide”, with leaders aged between 25 and 44 most upbeat about the potential impact of GB Energy’s presence in Scotland, in contrast with scepticism shown by those aged 55 to 64.

Some 37% of respondents said they are worried about how GB Energy will be funded, while 35% fear that its establishment will not result in lower energy bills for households and businesses. Additionally, 30% anticipate potential job losses in traditional fossil fuel industries as the sector undergoes a significant transition to clean energy.

Richard Cockburn, head of energy at Womble Bond Dickinson, said: “GB Energy’s decision to base its headquarters in Scotland marks a key milestone for the country’s renewable energy sector and further underpins Scotland’s role as a leading centre for clean energy. The widespread optimism among Scottish business leaders highlights the opportunities for job creation, economic growth and bolstering energy security. However, the transition also poses challenges that cannot be overlooked.”

He added: “As Scotland continues to position itself as a leader in renewable energy, the concerns raised – particularly around the funding of GB Energy and support for displaced workers in fossil fuel industries – must be addressed to ensure an equitable and sustainable transition and the upskilling of our existing workforce.”