The Energy Networks Association has raised concerns over the future of innovation funding, while announcing its members have chosen to move forward with seven proposals submitted in response to a call for ideas for Ofgem’s annual Network Innovation Competition.
The industry body sounded the call in September last year. The successful applicants will work with network operators to bid for up to £20 million of funding for gas innovation projects and up to £70 million available for electricity innovation projects.
Of the 58 proposals submitted, 45 were focused on electricity, one was focused on gas and 12 were for cross-sector projects. The seven ideas that will progress to the next stage of the process will be revealed by the Energy Networks Association (ENA) on 29 March.
David Smith, chief executive of the ENA, expressed delight at both the quality and number of applications.
“They are a sign of how successful the current system has been in bringing forward new ideas to deliver a more flexible, smarter and cleaner energy system for the public,” he said.
“Whether it be delivering the secure and reliable energy that we all depend upon, developing Britain’s internet of energy or coming up with new ways to move the nation through decarbonisation of transport, innovation projects are key to energy network companies’ commitment to building a smarter, cleaner and more flexible energy system for the British public.”
He added: “What’s important is that as we head into the RIIO2 process, the regulator builds on that legacy in its proposals for the price control, and that legacy doesn’t go to waste.”
A spokesperson for the ENA said concerns are rife that Ofgem will pull the plug on funding for the competition and warned this would have a “devastating effect” on attempts to encourage projects focusing on decarbonisation.
An Ofgem spokesperson said: “The Network Innovation Competition will continue to run in its current format for the remainder of RIIO1.
“For RIIO2, Ofgem is proposing to build upon these arrangements and run a competition with a sharper focus on strategic energy system transition challenges, increases engagement from third parties and increases coordination between network innovation and other publicly funded energy innovation.”
Ofgem announced the winners of the 2018 Network Innovation Competition in November, awarding nearly £47 million to four projects. You can read more about them here.