FT reports that UK Treasury is considering cutting funding for GB Energy

The Financial Times reported that Britain's Treasury Department is considering cutting funding plans for the state-backed energy company GB Energy during a review of spending scheduled for June.

The British government created GB Energy last year with a budget of 8.3 billion pounds (10.73 billion dollars) and envisioned it as its main tool for driving investment in renewable energies.

The Crown Estate, which manages the public holdings of the British monarchy, was to be partnered with the company to lease seabeds for 20-30 gigawatts by 2030.

A request for comment was not immediately responded to by the UK Treasury or Britain's Energy Department. GB Energy could not be reached for a quick comment.

The newspaper reported that one of the options the Treasury is considering is to cut the 3.3 billion pounds that were previously allocated for low-interest loan funding via local authorities, such as projects like solar panels on rooftops and wind turbine projects with shared ownership.

The funding reduction comes as Britain aims to decarbonise the power sector by 2030, by reducing its dependence on gas-fired plants and increasing rapidly its renewable energy capacity.

In January, Britain's deputy minister of finance Darren Jones announced that the government was conducting the first zero-based spending review in 17 years. The government will only provide financial support to departments who have met the criteria set forth in the zero-based review of government spending.

(source: Reuters)