Energy innovation is a global success story – but how do we maintain momentum?

The Energy Networks Association’s Dan Clarke reflects on the world-leading approach the UK has taken to energy innovation but stresses that complacency cannot creep in and that funding streams must remain open to ensure this success continues.

The Silicon Valley companies that help shape our daily lives have origin stories steeped in dramatic pivots and ‘light bulb’ moments, moments that crystalise a certain approach to rapid innovation. Tens of thousands of enterprises around the world have tried to implement elements of this methodology. So, when I say the UK’s approach to energy network innovation is widely recognised as one of the most effective globally, what does this actually mean in practice and how can we maintain this momentum?

Central to the UK’s approach is the Network Innovation Allowance (NIA) – funding that allows innovations to rapidly be brought forward, tested and shared. NIA serves as the rocket fuel for rapid innovation within the broader framework of the Strategic Innovation Fund (SIF). SIF provides general innovation project funding for low carbon schemes within the energy sector. An equally important part of this process is ENA’s Smarter Networks innovation portal. It allows tools, research and insight to be shared and projects to be iteratively developed by different partners.

In practice, this means vital resources like the Wales & West Utilities’ Consumer Vulnerability Tool can quickly be shared across all energy networks in Great Britain and beyond. This tool is now used in all innovation projects to assess the impact changes will have on the most vulnerable and help ensure that future investment to meet their needs is set at the correct level. Instead of 100 different version of the same tool, one high quality and comprehensive version allows everyone to save time and get the right results. You might say one light bulb moment can light up hundreds of projects at the same time.

Innovation also means changing direction as projects evolve to meet operational needs. For energy networks this might be an expensive and elaborate process. For example, SP Energy Networks’ Angle-DC is a smart and flexible method for reinforcing distribution networks, though feedback on the initial phases of the project had shown it needed to improve access, documentation and reporting if it was to succeed. NIA funding allowed the project to continue past these initial challenges, adapting and uplifting the proposals to ensure the development could be maintained. Participants in the NIA Framework also find that innovation methodology’s focus on knowledge sharing and standardisation around successful new approaches can be built into their BAU processes, allowing for faster implementation and shared benefits across all network customers.

Initiating projects quickly and progressing them through the stages of development is another area where funding is vital. The NIA framework allows new projects to be kick started rapidly, and mature schemes to progress in new directions. The ongoing Hydrogen Village Trail, which aims to convert 1,000-2,000 properties to hydrogen for heating instead of natural gas, developed additional features as it progressed. NIA funding allowed these additional features to be brought forward and tested quickly, which was crucial for the fast-moving scheme. We’ve also heard how our partners prefer NIA to similar types of support as it is more consistent, meaning they can plan with confidence following a rapid start.

The Autumn Statement laid out the objective for the energy sector – and I agree cheap, low carbon, reliable energy must sit at the heart of any modern economy. To get there, we need to keep up the pace of network innovation as the enabler to this decarbonisation journey. It is vital that ambitious future focused schemes that have made the UK one of the most smart and flexible energy markets in the world continue to get the NIA and SIF funding they need. As the government assesses the value of its strategic funding across the UK, I would say innovation funding is one of the surest long-term investments they can make in the UK’s future success.