Pipe up: energy companies should look to SMEs for innovation

“Collaborative working with forward-thinking partners, including SMEs, will deliver world class innovation.”

Many of the world’s biggest companies – Unilever, Google, Lego and Coca-Cola to name a few – invest in programmes with external SMEs that exploit the scale and reach of big business to accelerate the development of small business technologies and ideas.
Tapping into the innovations they are developing and then helping them become part of “business as usual” can result in an exchange that is rewarding and offers incredible value to both parties.
When we set up the Energy Innovation Centre (EIC), such a forward-thinking approach was a real challenge and a leap of faith. Six years on, I am struck by the mounting evidence that demonstrates how reaching out to the small business innovation community is generating opportunities and value for the energy industry. Small businesses and start-ups are agile and can innovate, and big industry all too often finds itself hamstrung through a combination of risk aversion and corporate process – although we are seeing pockets of change here.
This open approach to innovation is fundamental to the way we work at the EIC. After a recent visit to the US to visit energy companies, I have been reflecting on innovation in the UK energy industry and I believe culturally and aspirationally we are way ahead of the US utilities sector. Given the requirements of RIIO, I remain convinced that it will be through collaborative working with forward-thinking partners, including SMEs, that we will deliver world class innovation.
I have recently worked with IVITI Lighting, a small business in Wales that has developed some clever LED light bulb technology. Just over five months ago, they approached us with their IVITI ON bulb, which can stay on for up to three hours during a power cut. While it was clear that the business believed in the benefits of its technology, it was less certain on what the applications could be. The product has since been piloted by three DNOs in their respective regions. This example highlights how collaboration can create value for all.
Of course, the stars don’t always align so perfectly; for every project that succeeds, there will be many others that fail. But by creating as many opportunities as we can for both the energy distribution networks and the EIC’s innovation community, we are in a strong position to support the ever-increasing ambition of the industry.
Denise Massey, managing director, Energy Innovation Centre, will chair the “Connecting Innovative SMEs with the Utilities Market” seminar at Utility Week Live on 21 April. www.utilityweeklive.co.uk