The Crown Estate of King Charles III will partner with a new state-backed company to accelerate the building of offshore wind farms considered vital for the UK’s energy and climate goals.

The move announced on Thursday marks the first concrete step by the government to use Great British Energy in its quest for a zero-carbon electric grid by 2030. This collaboration with the Crown Estate, owners of the UK’s seabed, means the public sector will get involved earlier in the development stages and hopefully attract more private funding, according to a statement.

“Investing in clean power is the route to end the UK’s energy insecurity, and Great British Energy will be essential in this mission,” Energy Security and Net Zero Secretary Ed Miliband said.

The agreement has the potential to leverage as much as £60 billion of investment into the UK’s renewables business, the government said. Energy security and the need for the state to play a bigger role in guaranteeing that was a major campaign issue for recently elected Prime Minister Keir Starmer.

“The first test of GB Energy and its partnership with the Crown Estate will be in this year’s CfD auction,” said Sam Hollister, head of energy economics, policy and investment at consultants LCP Delta. “With zero offshore wind procured last year, the industry and the UK’s decarbonisation ambitions are playing catch-up.”

LCP Delta estimates that the UK must procure 15 gigawatts of capacity in the next two auctions to reach a 55 gigawatt (GW) target. Earlier this year, LCP Delta estimated that the current budget would only lead to 4-6GW of capacity at the next auction.

Great British Energy is receiving £8.3 billion of taxpayer money to own and operate assets in collaboration with the private sector. By allowing borrowing, the government believes 20-30GW of new offshore wind seabed leases can be secured by 2030.

“The best way to make sure that the public benefits from GB Energy and that the economy grows, is to complement - rather than duplicate - the investment, expertise and experience of the private sector,” Emma Pinchbeck, chief executive officer of industry association Energy UK, said. “Success depends on private investment being crowded in rather than crowded out.”

  - Bloomberg