The publicly-owned energy company created if Labour forms the next UK government will be headquartered in Scotland, the party will announce on Monday.
In a speech in Edinburgh, Labour leader, Sir Keir Starmer, will give more details about his plans for the firm, which will be called Great British Energy (GBE).
He will claim that if his party wins the next general election, it will turn the UK into a “clean energy superpower” by the end of the decade, cutting people’s bills in the process.
The decision to base the new firm north of the border will be seen as part of Labour’s drive to win over voters in Scotland, who polls suggest are turning away from the SNP.
Nicola Sturgeon famously made a state-owned Scottish energy company the centrepiece of her 2017 SNP conference speech, but the plans never materialised and were later scrapped.
Labour has previously been criticised for flip-flopping on its plans to ban new oil and gas developments in the North Sea, which were described as “naive” by trade unions.
Sir Keir has since stressed that oil and gas would be a “crucial part” of the UK’s energy supply for years to come, a position reiterated by Scottish leader, Anas Sarwar, on Sunday.
“There will be no turning off of the tap, we are clear that oil and gas will play a significant role in our energy industry for decades,” he told the BBC’s Sunday with Laura Kuenssberg.
“We will honour all existing licences [for oil and gas], any new licences that are issued between now and the next Labour government we will of course honour them as well.”
During his speech, Sir Keir is also expected to set out new targets to reduce the time taken to complete clean power projects from “years to months”, by removing planning barriers standing in the way of green initiatives.
The party has also committed to a local power plan which it says will allow households across the UK to receive discounts on their bills if their area signs up to new green initiatives.
GB Energy will make available up to £600m in funding for councils and up to £400m in low-interest loans each year for communities, it claims.
Overall, the party is pledging to take up to £1,400 off household bills and £53bn off energy bills for businesses by 2030 through its so-called Green Prosperity Plan.
It is promising to double the number of jobs in low carbon sectors in Scotland, with 50,000 direct and indirect jobs in the clean power sector alone.
Scottish Conservative energy spokesman, Liam Kerr, said Labour was in “complete denial over the tens of thousands of skilled Scottish jobs” that its plans would put at risk.
Banning new oil and gas developments in the North Sea would lead to a “devastating cliff-edge for the industry and a betrayal of the livelihoods it supports”, he added.
