Edinburgh could be in running for headquarters of new publicly-owned Great British Energy

Aberdeen had been seen as the most likely headquarters location because the city has been known as the energy capital of Europe since the discovery of North Sea Oil in the 1970s.

But reports say Edinburgh, Glasgow and Aberdeen are all on a shortlist drawn up by Energy Secretary Ed Miliband.  And Edinburgh Chamber of Commerce today argued that as the biggest UK financial centre outside London, the Capital was "the obvious choice".

Labour committed before the general election to establishing GB Energy as a publicly-owned company to drive the transition to clean energy by 2030 and pledged it would be headquartered in Scotland, but without identifying where.

Liz McAreavey, chief executive of Edinburgh Chamber of Commerce, said: "Edinburgh, as the leading UK financial centre outside London, is the obvious choice. Scotland’s capital is the fourth largest financial centre in Europe, and one of the leading 20 financial centres in the world. 

"No other Scottish city can match this proud history of providing financial services and fund management, and through it Edinburgh can provide the skills, expertise and experience that will be required to ensure that the public funds being invested are used to maximum effect in the transition to net zero. 

"In addition, through its existing financial clout, Edinburgh is also well-placed to help leverage private sector investment.  Then add in the world-leading data management and analysis capabilities in the city and the case for selecting Edinburgh is extremely strong."   

Aberdeen Chamber of Commerce pointed out more than 900 leading businesspeople and major companies had recently signed an open letter to Keir Starmer backing Aberdeen’s case. The chamber said: “Aberdeen has been Europe’s major global energy hub for half a century. We are home to over a thousand energy supply chain companies and the lion’s share of energy workers who stand ready to deliver the UK’s transition to net zero. Over 17GW of floating offshore wind projects will be deployed within 100 nautical miles of our city. 

“Quite clearly there is no better location for GB Energy than Aberdeen. People and businesses right across Scotland already understand why that is the case – and we’re confident that government will find that case similarly compelling.”

And Glasgow Chamber of Commerce said its city would be an “ideal” base for the new energy company. “Glasgow is the home of highly innovative renewable energy firms, many major utility and renewable companies, the offshore renewable energy catapult, and a skills base with multiple top universities and colleges, particular the University of Strathclyde, and its work  producing some the nation's best graduates in the energy sector.”

Scottish Secretary and Edinburgh South MP Ian Murray would not be drawn on the likely location, but said an announcement could be expected shortly.

He said: "Every city and every area in Scotland can make a case - all those cases are being made at the moment, very strongly, to Ed Miliband, and a decision will be made relatively shortly.

"Where it's headquartered, of course it's important, but it's not the key issue - the key issue here is it's in Scotland, it's publicly owned and it's going to be driving us towards clean power by 2030, which should lower people's bills, provide jobs and give us energy security."