A guide to energy network innovation

From the circular design of substations to fostering a flexible network through digital infrastructure, innovation is pushing the energy industry forward.  

Innovation in the energy industry is often non-linear and gradual. Not all projects progress neatly from idea generation to implementation. Ideas often build on previous projects, incorporating learning and creating feedback loops within and between projects. This is crucial for knowledge sharing and making informed decisions about implementing solutions.

Every two years, ENA publishes the Energy Network Innovation Process (ENIP), a comprehensive document outlining the networks’ approach to innovation and how they evaluate ideas, issue contracts and measure the benefits. 

NIA and SIF funding streams

Ideas for network innovation can come from various places. ENA welcomes submissions to our Smarter Networks Portal (SNP) and the electricity networks also consider ideas directly.

Every year, ENA calls for ideas via our Energy Innovation Basecamp process. We gather technical challenges that the networks face, called ‘problem statements’, and open an application portal for innovators to submit their ideas. These are evaluated based on criteria, such as alignment with the Energy Networks Innovation Strategy, value for money, and feasibility of implementation. The details of each project are shared among networks to avoid duplication and explore the possibility of collaboration.

SIF-funded projects are initiated by Ofgem's Innovation Challenges so the process differs slightly from ones backed by the NIA. The NIA is a baseline allowance that each network licensee receives to fund innovative projects as part of its price control settlement.

The SIF is additional innovation funding which network licensees can apply for and is focused on the achievement of net zero and the energy system transition, whilst delivering net benefits to energy consumers.  

Once an idea has been submitted, electricity networks check to see if it addresses network challenges and meets NIA or SIF eligibility criteria.

Approved NIA projects are registered on the SNP so everyone can see the project scope and objectives and align new ideas accordingly. SIF projects follow a three-phase approach (discovery, alpha, beta) with distinct funding applications evaluated by UKRI and Ofgem. These are also added to the SNP.

Putting innovation into action

As projects progress into the last stages, the electricity networks conduct their final internal reviews and quality assurance checks. Reporting and dissemination of conclusions are done through formal project closedown reports and Annual Innovation Reports, available on the SNP. Project learnings and next steps are shared with other networks to facilitate deployment into business-as-usual (BAU) or collaboration on follow-up projects.

The results are monitored and reported annually as part of the Innovation Measurement Framework (IMF), and then it is on to the next innovation project. The ideas are either taken further towards implementation, the networks explore alternatives, or pick up a new concept in a different area.

Do you have the next big idea in network innovation? Read the latest ENIP, strategy, and basecamp problem statements, and visit the Smarter Networks Portal to get started.