Ofgem awards £37m for net zero energy networks

Ofgem has announced funding for 25 forward-looking projects that will trial and develop new technologies aimed at cutting carbon emissions across the UK’s energy infrastructure.

Through its Strategic Innovation Fund (SIF), the energy regulator has committed more than £36.7 million to initiatives designed to help transform and decarbonise Great Britain’s energy networks. The programme is delivered in partnership with Innovate UK and focuses on innovation that supports a modern, flexible energy system aligned with the UK’s 2050 net zero target.

The funded projects are expected to deliver tangible benefits for households and businesses by strengthening energy security, keeping costs down, and supporting a robust, competitive economy. Key priorities include expanding and upgrading electricity networks, improving grid resilience, and rolling out energy-efficient solutions, particularly for vulnerable and low-income consumers.

A total of £31.6 million has been awarded to five large-scale “beta demonstrator” projects that are moving towards commercial deployment. In addition, seven early-stage “alpha” projects received £3.3 million to develop and test proof-of-concept ideas.

SSEN is researching transmission capacity improvements in adverse weather conditions

Among the beta projects is REVISE, led by SSEN Transmission, which applies detailed weather forecasting and advanced modelling to improve the performance of overhead power lines. SNUG, developed by UK Power Networks, aims to create new market frameworks that allow social housing providers to participate in flexibility services. Nature4Networks, from Southern Electric Power Distribution, is examining how nature-based solutions can be integrated into network planning at scale. Pathways to 2050, led by SSEN Distribution, focuses on consumer-led upgrades to low-voltage networks, while Wayl-Ease, also from UK Power Networks, uses artificial intelligence and geospatial data to streamline wayleave agreements.

The alpha portfolio includes VOLT, a microgrid decarbonisation project led by Northern Powergrid, and SHARED, which explores affordable hydrogen options for rural areas.

LCP Delta and Newcastle University are Northern Powergrid’s key partners on the VOLT project.

Paul Fitton, Director of Digital and Innovation at Northern Powergrid, said: “We are proud to lead the VOLT project in collaboration with our partners, and we’re thrilled that some of the North East’s major infrastructure providers and employers are involved in this journey.

“We play a pivotal role in driving economic growth and enabling decarbonisation across the areas we serve.

“This project will contribute to reducing carbon emissions and lowering costs for some major Northern businesses, facilitating their progress towards net zero and enhancing operational efficiency.”

Paul Fitton and Jodie Giles

Other initiatives include ODIN, which uses real-time data to identify asset deterioration; Future Fleet, targeting scalable electrification of vehicle fleets; and HVDC Wind Connect, which looks at better integration of offshore wind. Projects such as Hydrogen-Enhanced Biomethane for Energy System Resilience and Power Wheels will investigate how hydrogen and electric vehicles can support system balancing and flexibility.

Commenting on the funding, Jodie Giles, Deputy Director of the Ofgem Strategic Innovation Fund at Innovate UK, said:

“The supported projects will help deliver a cleaner and more affordable energy system while playing a vital role in tackling climate change”.

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