Ofgem launches £450m energy innovation fund
Energy regulator Ofgem today said that it would offer firms hundreds of millions of pounds of funding over the next half-decade to develop innovative new solutions for the electricity grid.
In all the watchdog will make £450m available to network companies, system operators, and businesses to help accelerate the UK’s push towards net-zero.
It added that the funding could extended for projects with strong potential.
The money will go towards four challenges Ofgem has identified: heat, transport, data and digitalisation, and “whole system integration” – which joins up the entire journey of electricity from plant to plug.
Types of projects the funding could cover include heat pumps to provide carbon-free heating and battery storage technologies.
Ofgem chief executive Jonathan Brierley said: “What we need, more than ever, to reduce greenhouse gas emissions and reach net zero is innovation.
“The Strategic Innovation Fund means cutting-edge ideas and new technologies become a reality, helping us find greener ways to travel, and to heat and power Britain at low cost.
“Britain’s energy infrastructure will play a pivotal role in cutting net zero greenhouse gas emissions, and this fund will help make sure our energy system is ready to deliver that.”
“The UK is leading the world in decarbonising our energy system, with our innovators playing a vital role in going further while ensuring consumers receive clean and affordable energy,” said energy minister Lord Callanan.
“The Strategic Innovation Fund will ensure the best projects and most talented minds have the grants available to reduce carbon emissions and enable bill payers to see the benefits of building back greener.”