Tackling energy network challenges to achieve net zero

Silhouettes of power lines in a flat landscape and blue sky.

The Office of Gas and Electricity Markets (Ofgem) and Innovate UK announce the awarding of a further £9.7 million of Strategic Innovation Fund (SIF) funding.

HeatNet is one of the successful alpha phase projects building on its previous discovery phase findings. The project is looking at how to improve the process of network planning and connecting renewable energy sources to the grid.

The HeatNet project tackles the challenge of managing rising heat pump demand. As the adoption of heat pumps accelerates, the need for smarter solutions to tackle costly voltage drops and network strain is growing.

The project will refine smart coordination tools that will support more heat pumps without the need for expensive network reinforcement and upgrades. This will ensure a reliable network that meets consumer needs and keeps them comfortable.

The SIF three phase process

Most projects follow the SIF three phase process, discovery, alpha and beta, competing for higher levels of funding at each phase, with fewer projects going through each time. But the flexibility-of-funding provided by SIF means that not all projects must follow that same path.

Projects that align with a challenge and meet the necessary requirements, can submit an application straight to alpha or beta. Projects that meet this criterion include those funded by SIF in a previous round or funded from an energy innovation fund such as the Network Innovation Allowance (NIA).

The HyScale Liquid Organic Hydrogen Carrier (LOHC) phase 2b project is a great example of this, meeting the SIF straight to alpha criterion through NIA funding of HyScale LOHC phase 2a.

The Hyscale LOHC project aims to demonstrate how an LOHC system can be used for capturing, storing and releasing hydrogen into a gas network to manage long-duration storage requirements.

The use of LOHCs connected to an electrolyser and a hydrogen gas network, will enable it to run flexibly and take advantage of low electricity prices. This will reduce the cost of producing hydrogen for consumers, accelerating the uptake of hydrogen for industrial needs, power generation and domestic heating.

Supporting fresh ideas

Marzia Zafar, Deputy Director of Digitalisation and Innovation at Ofgem, said:

This money will drive innovation in our energy system to decarbonise, reduce bills and protect consumers, and Ofgem is excited to see these projects develop.

We’re at a critical moment when it comes to our energy system, but by supporting fresh ideas and bold thinking, I’m confident we can reach net zero in the most equitable way possible, offering benefits for people all over the country.

The Strategic Innovation Fund is an important part of reaching net zero, supporting people and organisations with great ideas to solve the major challenge of our time.

Successful innovation

Paul Padaruth, Head of Commercial, Ofgem SIF at Innovate UK said:

The Strategic innovation fund continues to find and fund ambitious innovation that can deliver meaningful change in the drive to decarbonise our energy system.

Congratulations to the successful projects. It is great to see the evolution of existing partnerships and the creation of new ones in the projects that have been successful in securing funding.

Through the creativity and ambition of the partners and these projects, I am confident we will see successful innovation that will support our net zero objective.

Further information

Ofgem SIF: round three alpha: innovation projects approved for funding

Energy networks with projects approved

Lead project partner: Scottish and Southern Electricity Networks Distribution

Network type: electricity

Number of approved projects: one

Lead project partner: National Grid Electricity Distribution

Network type: electricity

Number of approved projects: three

Lead project partner: Northern Power Grid

Network type: electricity

Number of approved projects: three

Lead project partner: National Grid Electricity Transmission

Network type: electricity

Number of approved projects: two

Lead project partner: UK Power Networks

Network type: electricity

Number of approved projects: five

Lead project partner: Scottish and Southern Electricity Networks Transmission

Network type: electricity

Number of approved projects: one

Lead project partner: National Grid Electricity System Operator

Network type: electricity

Number of approved projects: one

Lead project partner: SP Energy Networks

Network type: electricity

Number of approved projects: two

Lead project partner: Electricity North West

Network type: electricity

Number of approved projects: one

Lead project partner: Cadent Gas

Network type: gas

Number of approved projects: one

Lead project partner: Southern Gas Networks

Network type: gas

Number of approved projects: one

Summary of projects approved

Project title: Sea change

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: developing a replicable, port-level investment model to explore transition scenarios to achieve zero emissions shipping by 2025, across the notably complex and diverse maritime sector.

The model will also inform and enable ports and their users to plot their most viable decarbonisation paths.

Project partners:

  • Scottish and Southern Electricity Networks Distribution (lead)
  • Associated British Ports
  • British Ports Association
  • Ricardo-AEA Limited
  • The European Marine Energy Centre
  • The Power Networks Demonstration Centre, University of Strathclyde
  • National Gas Transmission

Lead network type: electricity

SIF funding award: £445,189

Project title: Nature 4 networks

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: exploring the use of nature-based solutions to protect assets from problems such as flood risk and extreme heat.

Reducing carbon intensive construction of hard engineering solutions, with effective natural options that provide climate, biodiversity, social and wellbeing benefits.

Project partners:

  • Scottish and Southern Electricity Networks Distribution (lead)
  • GHD
  • Frontier Economics
  • SP Energy Networks Transmission

Lead network type: electricity

SIF funding award: £499,148

Project title: Revisiting and evaluating environmental inputs on line ratings

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: using latest generation high-resolution weather topographic data, combined with the latest techniques for system modelling, to improve understanding and methodology of line ratings and meet demand for connection of new renewables.

Project partners:

  • Scottish and Southern Electricity Networks Transmission
  • National Grid
  • National Grid ESO
  • EnergyLine
  • Met Office
  • University of Strathclyde

Lead network type: electricity

SIF funding award: £389,725

Project title: Cross Vector Energy Hub

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: design and implementation of a multi-vector (gas plus electricity) energy hub to optimise devices across a whole system, to increase resilience, operating efficiency, and hosting coordination.

Project partners:

  • Northern Powergrid (lead)
  • Smarter Grid Solutions
  • Northern Gas Networks

Lead network type: electricity

SIF funding award: £380,106

Project title: Look NortH2

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: exploring potential benefits and associated costs of developing offshore energy hubs (OEHs) in the UK. Developing scenarios that quantify benefits such as curtailment reduction, grid losses reduction, and infrastructure optimisation.

OEHs could stimulate integration of offshore electricity or hydrogen production between the UK and European countries.

Project partners:

  • National Grid Electricity Transmission (lead)
  • Guidehouse
  • Orsted
  • National Gas Transmission
  • Copenhagen Infrastructure Partner

Lead network type: electricity

SIF funding award: £425,115

Project title: Wayl-Ease

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: creating a transparent, but secure, external-facing record of consent by public and private landowners to dig up their ground and install network equipment.

Automation of manual process and giving customers visibility will improve planning, speed up network transformation and inform customers.

Project partners:

  • UK Power Networks (lead)
  • Digital Catapult
  • Tata Consulting Services
  • SP Energy Networks Transmission

Lead network type: electricity

SIF funding award: £485,499

Project title: Road to power

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: developing specific tools to forecast future energy consumption and infrastructural impact of works. It supports the street and road works sector as it decarbonises 7.8 terawatt hours of energy demand across 700,000 major works in the sector’s pivotal transition to net zero by 2030.

Project partners:

  • National Grid Electricity Distribution (lead)
  • EA Technology
  • Kier Transportation

Lead network type: electricity

SIF funding award: £437,404

Project title: HeatNet

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: developing novel machine learning tools to manage power loads from heat pumps and help regulate voltage-drops at the grid edge, to accelerate the electrification of heat, improve voltage quality and network reliability, and keep our customers warm.

Project partners:

  • UK Power Networks (lead)
  • Passiv UK
  • I C Consultants

Lead network type: electricity

SIF funding award: £467,057

Project title: Electric Thames

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: mapping the future of the electricity system around the Thames.

Exploring new technologies such as Boat-to-Grid services, to shape whole system planning and offer insights for decarbonisation and electrification that can be replicated across Great Britain waterways.

Project partners:

  • UK Power Networks (lead)
  • Lane Clark & Peacock
  • Marine Zero
  • Port of London Authority
  • EV Dot Energy

Lead network type: electricity

SIF funding award: £499,643

Project title: Rural energy and community heat

Challenge area: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Project description: working with rural community energy groups to develop a modular rural energy centre that will help communities make cost effective decarbonisation plans.

The solution will offer shared low carbon heating, rapid electric vehicle charging, and renewable generation in areas not served by commercial markets, and where there is limited electricity network capacity.

Project partners:

  • National Grid Electricity Distribution (lead)
  • Cranfield University
  • Regen SW
  • Smart Grid Consultancy
  • Frontier Economics
  • Kensa Utilities
  • Vepod

Lead network type: electricity

SIF funding award: £490,017

Project title: LV Optimiser

Challenge area: novel technical, process and market approaches to deliver an equitable and secure net zero power system

Project description: focusing on an innovative low voltage (LV) power electronic device, (LV Optimiser). With its novel control algorithm to address LV voltage quality and imbalance, to support the growing demand and adoption of low carbon technologies such as solar panels, electric vehicles, and heat pumps.

Project partners:

  • SP Energy Networks (Manweb) (lead)
  • The University of Glasgow
  • BCARE
  • SP Energy Networks Retail

Lead network type: electricity

SIF funding award: £490,119

Project title: Fractal flow

Challenge area: novel technical, process and market approaches to deliver an equitable and secure net zero power system

Project description: developing a tool which provides clear visibility of fractal flow, to unlock capacity, provide clearer status visibility and explore integration of powerful machine learning analysis and targeted data exchange across grid supply points.

Project partners:

  • Northern Powergrid (lead)
  • Frazer-Nash Consultancy
  • National Grid ESO
  • ElectraLink
  • Electricity North West
  • Oak Tree Power Limited

Lead network type: electricity

SIF funding award: £497,885

Project title: Assessment of superconducting technologies for standards development

Challenge area: novel technical, process and market approaches to deliver an equitable and secure net zero power system

Project description: superconducting systems have five to 10 times higher power density than the equivalent voltage conductor, meaning they deliver higher capacity at lower voltage levels and via a lower number of routes. This will allow faster network capacity increase, delivering time, cost, and carbon savings.

Superconducting systems can also deliver a reduction in energy losses to virtually zero and ultimately realise greater environmental and health benefits.

Project partners:

  • National Grid Electricity Transmission (lead)
  • Frazer-Nash Consultancy
  • The University of Manchester
  • University of Strathclyde
  • VEIR
  • Supernode

Lead network type: electricity

SIF funding award: £443,086

Project title: System strength measurement and evaluation

Challenge area: novel technical, process and market approaches to deliver an equitable and secure net zero power system

Project description: bringing together leading experts to create a pathway to confident implementation of measurement-based tools. These provide comprehensive visibility of system strength status, avoiding uncontrolled voltage change, instability, and the risk of widescale customer disconnections.

Project partners:

  • Scottish and Southern Electricity Networks Transmission
  • National Physical Laboratory (lead)
  • UK Power Networks
  • National Grid
  • Imperial College London
  • Scottish and Southern Energy Renewables

Lead network type: electricity

SIF funding award: £478,612

Project title: Network security in a quantum future

Challenge area: novel technical, process and market approaches to deliver an equitable and secure net zero power system

Project description: investigating the quantum threat to the energy system’s cybersecurity, helping the industry to understand the actual threat from state actors, organised crime, and other threats, and enabling mitigation strategies to be developed.

Project partners:

  • National Grid ESO (lead)
  • Cambridge Consultants
  • University of Edinburgh

Lead network type: electricity

SIF funding award: £498,264

Project title: Fuel cell renewable energy equity

Challenge area: novel technical, process and market approaches to deliver an equitable and secure net zero power system

Project description: exploring how fuel cell micro combined heat and power systems can provide uninterruptable power supply functionality for individual homes, as well as support other nearby homes which depend on direct electrification to provide heat, power, and mobility.

Project partners:

  • Northern Powergrid (lead)
  • LCP Delta
  • ON
  • fifty5north
  • Bosch
  • PNDC
  • Northern Gas Network
  • EA Technology

Lead network type: electricity

SIF funding award: £472,235

Project title: Equiflex

Challenge area: novel technical, process and market approaches to deliver an equitable and secure net zero power system

Project description: focusing on equal access to financial and environmental benefits for hard to engage and vulnerable customers, ensuring no consumers are unfairly left behind and enabling a just transition to net zero.

Project partners:

  • SP Energy Networks (lead)
  • Frazer-Nash Consultancy
  • East Ayrshire Council
  • Energy Action Scotland
  • SP Energy Retail
  • University of the West of Scotland

Lead network type: electricity

SIF funding award: £424,011

Project title: Flex direct

Challenge area: novel technical, process and market approaches to deliver an equitable and secure net zero power system

Project description: transforming the roll out of energy efficiency upgrades, by developing novel commercial models and coordinated market approaches. These enable local authorities and social housing providers to work with distribution system operators to incentivise and facilitate participation for hard-to-reach customers.

Project partners:

  • UK Power Networks (lead)
  • Sia Partners
  • Centre for Sustainable Energy
  • LCP Delta
  • Utilita Energy

Lead network type: electricity

SIF funding award: £480,307

Project title: Cool Down

Challenge area: unlocking energy system flexibility to accelerate electrification of heat

Project description: despite modelling suggesting increasing cooling demand in office, retail and domestic spaces as the UK warms, cooling demand is currently poorly accounted for in distribution network planning.

Additionally, its potential to offer flexibility during periods of network stress has not been considered. Cool Down will be the first project to consider cooling’s potential as a flexible load.

Project partners:

  • Electricity North West (lead)
  • Guidehouse Europe
  • UCL Consultants
  • Impact Research
  • Oaktree Power
  • National Grid Electricity Distribution

Lead network type: electricity

SIF funding award: £499,888

Project title: Exploring geological hydrogen storage opportunities for the East Midlands

Challenge area: enabling power-to-gas to provide system flexibility and energy network optimisation

Project description: investigating options for storage of excess renewable energy for use during periods of peak demand.

Project partners:

  • Cadent Gas (lead)
  • British Geological Survey
  • University of Edinburgh
  • Star Energy
  • Uniper
  • Centrica
  • National Gas

Lead network type: gas

SIF funding award: £499,981

Project title: HyScale LOHC phase 2b

Challenge area: enabling power-to-gas to provide system flexibility and energy network optimisation

Project description: the HyScale Liquid Organic Hydrogen Carrier (LOHC) project aims to demonstrate how an LOHC system can be used for capturing, storing and releasing hydrogen into a gas network, to manage long-duration storage requirements.

The use of LOHCs connected to an electrolyser and a hydrogen gas network, will enable it to run flexibly and take advantage of low electricity prices. This will reduce the cost of producing hydrogen for consumers, accelerating the uptake of hydrogen for industrial offtakers, power generation and domestic heating.

LOHC systems may play an important role in providing storage flexibility where geological storage is not available.

Project partners:

  • Southern Gas Networks (lead)
  • ERM
  • Framatome
  • Blue Abundance
  • Forschungszentrum Jülich
  • Cadent Gas
  • Northern Gas Networks
  • National Gas Transmission
  • Wales & West Utilities

Lead network type: gas

SIF funding award: £451,849

Top image:  Credit: Sjo, E+ via Getty Images

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