Energy networks have adopted a new tool to designed to gauge the full benefits of innovation projects, incorporating not only the financial returns but also the societal, environmental and cultural gains.
The Innovation Measurement Framework (IMF) was developed the EIC (formerly the Energy Innovation Centre) with the help of Ofgem, the Energy Networks Association (ENA) and the consultancy firm Baringa.
Interested parties will eventually be able to access the results of assessments through a series of dashboards, one for each network. The EIC said projects that have not met their targets for return on investment but did bring about wider societal and environmental benefits “will now have a transparent rationale to be taken forward.”
“Previous attempts to measure innovation have tended to focus narrowly on demonstrating positive economic benefits,” said Duncan Sinclair, partner for energy retail and networks at Baringa. “But not all innovation succeeds and as much can be learned from innovation projects that have failed.
“Innovation strategies cease to be innovative if they are too risk averse. The IMF looks at innovation in the round, from strategy and culture through to failing fast, collaborating with others and embedding innovation into business as usual. It fosters a more balanced and holistic picture of how network companies are driving innovation.”
EIC managing director Denise Massey said: “As the UK energy sector and SMEs adapt to new ways of working following the COVID-19 outbreak, the need for a more holistic approach to innovation measurement has never been more important. This project captures everything we stand for at the EIC: encouraging collaboration, supporting positive change within the industry, and being the voice of the innovator community.”
The framework has now been handed over to the ENA to ensure it is implemented across all energy networks. ENA head of innovation Randolph Brazier said: “The Innovation Measurement Framework is a UK first and is vital to help track the outcomes of network companies’ innovation projects. It will help to ensure speedy and efficient innovation.
“Consumers will have access to consistent information which will enable them to understand how the projects benefit them, and which will also enable the network companies to monitor and track the successes of the projects they’re running.”
The first dashboards are expected to go live in spring 2022.