Electricity network operators plan to deliver £1.7 billion of benefits to the energy system by 2031.
The Energy Networks Association (ENA) has published the latest version of its Electricity Networks Innovation Strategy and launched a consultation for feedback.
Its strategy is being developed upon the recommendation of an Ofgem commissioned review of the Low Carbon Networks Fund (LNCF) which was undertaken by Pöyry and Ricardo Energy in 2016.
The report concluded the projects supported by the LNCF could deliver between £1.1 billion and £1.7 billion of net benefits to the energy system by 2031 if the host networks made the innovations they trialled part of their ‘business as usual’.
It estimated the gross future benefits could rise to between £7 billion and £11 billion if the innovations were adopted by all distribution network operators (DNOs).
By helping networks to meet new demands in the most cost-effective way, these innovations will generate major savings for bill payers, the ENA said. To accommodate the connection of new technologies such as solar panels, wind farms, battery storage and electricity vehicles, DNOs are shifting towards a more active role in the management of local supply and demand, becoming distribution system operators (DSOs).
The Electricity Networks Innovation Strategy outlines how DNOs will realise the benefits identified by the report. The strategy includes short, medium and long-term plans for innovation projects, describing:
A joint roadmap to deliver benefits from innovation projects and address challenges and uncertainties facing the industry
How networks operators can work with third-party innovators to help them identify and undertake new projects
How energy network companies can maximise the value of projects by sharing lessons and practical information
Ways in which network operators can collaborate further to tackle strategic industry issues, such as the connection of renewable generation or the roll-out of smart meters
Energy Networks Association chief executive David Smith, said: “Network innovation in our sector means that the UK is rapidly emerging as a world leader in developing smarter networks that build the foundations for our energy future.
“The Electricity Network Innovation Strategy is not just about both ensuring that network companies are able to access the newest and most innovative services to do that; it is also about how networks are embedding a culture of innovation within their organisations
“We want to ensure energy innovators are fully aware of the opportunities available to them and the consultation gives stakeholders the chance to help shape that process.”
The deadline for response is 15 December 2017. The ENA published its Gas Network Innovation Strategy earlier this month.