Great British Energy will allow Scotland to “lead the clean energy revolution”, Sir Keir Starmer said as further details about the publicly-owned company are set to be announced.
The legislation to create GB Energy will be introduced at Westminster on Thursday, with ministers saying it will secure Scottish industries like offshore wind and hydrogen.
Labour has vowed to create a publicly-owned energy generation company headquartered in Scotland to drive the Government’s goal of making the UK a “clean energy superpower”.
The exact location of the HQ will be revealed “soon”, the Government said.
UK ministers have been in talks with the Scottish Government and Crown Estate Scotland on how GB Energy can help development and investment in Scotland.
They say a new partnership with the Crown Estate could leverage private investment of £60 billion into the UK’s energy infrastructure.
The Government says it will have five key functions, including project investment and building up supply chains.
Ahead of the Bill’s introduction, the Prime Minister said: “Scotland will lead the clean energy revolution in the United Kingdom, fuelled by the skills, knowledge, and talented workforce the energy sector here contains.
“That’s why we’re headquartering GB Energy in Scotland, and today’s announcement takes us a step closer to achieving that.
“Clean energy by 2030, cheaper bills, and good jobs across the country.”
Scottish Secretary Ian Murray said: “Scotland is the powerhouse of our clean energy mission and Great British Energy will drive forward investment in home-grown energy production and provide benefits to bill payers.
“Greater energy security through Great British Energy will mean less reliance on overseas fossil fuels, boosting our economy and creating more jobs.
“We are also focused on cleaner energy and getting renewables projects online quicker, which is key for our journey to net zero.
“I am pleased we are working closely with the Scottish Government to ensure these benefits are felt by people right across the UK.”
She said: “In our initial engagements with the UK Government, we have made clear our expectations that GB Energy must deliver real benefits for the people of Scotland and support our ongoing efforts for a just transition and to reach net zero by 2045.
“Whilst there is a great deal of agreement between the two governments on many of the priorities that have been identified, one area where we diverge is on new nuclear power stations.
“We are clear that UK Government’s intended investment in nuclear should instead be used to bolster further renewables.”
Scottish Conservative energy spokesman Douglas Lumsden said: “This confirms what we already knew – that Labour are abandoning north-east Scotland, decimating both the local economy and our energy security.
“Ed Miliband has already revealed his intention to accelerate Labour’s block on new North Sea oil and gas licences, despite the tens of thousands of jobs this will jeopardise and the fact that it will force us to import expensive fossil fuels from overseas with a far higher carbon footprint.”
Lang Banks, director of WWF Scotland, said: “We look forward to seeing the details of the announcement.
“However, anything that can help accelerate the rollout of cleaner renewables and bring more jobs to this country would be welcomed.”
