Meeting increased demand
To achieve the government’s ambition to decarbonise Britain’s energy networks, we need to accelerate the connection of renewable energy sources to the grid.
This will require effective planning and forecasting to meet increased demand.
Supporting network planning
Our newest multimillion pound beta project, Artificial Forecasting, is looking at addressing these needs.
Led by Northern Powergrid, the project will expand load forecasting capability by building innovative artificial intelligence (AI) solutions.
These solutions will increase the granularity of the current forecasting process to a monthly, weekly, daily and hourly level.
This will support network planning and defer or avoid the need for expensive system reinforcement.
Novel flexibility solutions
Once we have our forecasting in place, we need to manage and mitigate the challenges peak demand will have on our energy systems.
This includes technologies such as thermal energy storage to help decouple electricity consumption and heat supplied from intermittent generation.
Two new alpha projects are addressing how networks can use novel flexibility solutions to reduce constraint on the electricity networks, reduce bills for customers and increase home energy efficiency.
Energy storage
Also led by Northern Powergrid, GeoGrid, will explore using geothermal long duration energy storage (LDES) to store renewable electricity as heat, using University of Leeds as a trial site.
By storing off-peak electricity and discharging it during peak demand periods, LDES can:
- reduce network congestion
- enhance grid resilience
- lower curtailment costs
This will help provide consumers with low-cost heat while supporting decarbonisation and energy security.
Efficiency and acceleration
EqualLCT will address how we meet the scale of demand that heat pumps and other low carbon technologies (LCTs) will place on the network.
The project team, led by Scottish and Southern Electricity Networks Distribution, will combine energy efficiency and flexibility products to accelerate the roll out of heat pumps.
Critical to this is the management of the cost and scale of reinforcement required to reduce consumer bills as we transition to net zero.
Clean power
Marzia Zafar, Deputy Director of Digitalisation and Innovation at Ofgem, said:
Network planning and managing demand are two of the big challenges we must overcome to decarbonise and reduce bills. The projects receiving Ofgem funding today will go some way to dealing with these challenges, and I’m excited to see how they progress.
In order to reach clean power by 2030, we have to think outside the box. As a regulator, Ofgem is committed to doing that, funding innovative projects and removing barriers to market entry wherever possible.
Urgent need
Jodie Giles, Deputy Director of the Ofgem Strategic Innovation Fund at Innovate UK, said:
Congratulations to these three projects who’ve successfully been through our new accelerated SIF application process.
The extreme weather and flooding we’ve experienced so far this winter drives home the urgent need for more energy innovation projects like this. These projects will test and demonstrate new technology and approaches to address climate change, keep bills low for consumers, and make our energy systems more resilient and secure.
I’m looking forward to seeing more ambitious projects in Cycle 2, so if you have a great idea for network innovation to accelerate net zero delivery, then we want to hear it!
New cycle two competitions
These three successful projects were funded through our cycle one competitions.
Cycle two opens on 27 January 2025 for round three beta, and round four discovery, alpha and beta applications.
We look forward to receiving your exciting applications.
Further information
Ofgem SIF: round three beta, summary of projects approved
Round three, challenge one: whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout
Artificial Forecasting
Network type: electricity distribution
Project partners:
- Northern Powergrid (lead)
- Faculty Science
- EV Dot Energy
- Oaktree Power
SIF funding award: £3,298,086
As distribution network operators develop their distribution system operator functions, the current annual process used to forecast load at extra-high-voltage and high-voltage needs to become increasingly granular.
Forecasting at a monthly, weekly, daily and hourly level, will support flexibility dispatch and defer or avoid reinforcement.
The increasing prevalence of low-voltage monitoring data enables new use cases to support network planning and the extension of flexibility markets at ED3.
The Artificial Forecasting project addresses these unmet needs by building innovative AI solutions to expand load forecasting capability at primary and secondary substations.
This will optimise flexibility procurement and enable distribution system operator functions across the sector.
Ofgem SIF: round four alpha, summary of projects approved
Round four, challenge two: greater heat flexibility
GeoGrid
Network type: electricity distribution
Project partners:
- Northern Powergrid (lead)
- University of Leeds
- ON UK
- Star Refrigeration
- Lane Clark & Peacock
- Leeds City Council
SIF funding award: £432,935
Exploring the use of geothermal long duration energy storage (LDES) to store renewable electricity as heat with University of Leeds as a trial site.
LDES offers a cost-effective, scalable solution that will reduce constraint on the electricity networks.
By storing off-peak electricity and discharging it during peak demand periods, LDES can lower curtailment costs, reduce network congestion, and enhance grid resilience.
GeoGrid will assess the commercial potential of geothermal energy storage for both the trial site and across Britain.
This will provide insights regarding its wider deployment, benefiting consumers with low-cost heat while supporting decarbonisation and energy security.
EqualLCT
Network type: electricity distribution
Project partners:
- Scottish and Southern Electricity Networks Distribution (lead)
- Baringa Partners
- Smart Metering Systems
SIF funding award: £449,687
To meet the demand that heat pumps and other low carbon technologies will place on the network significant reinforcement will be required.
It is critical that the cost of scale of this is managed effectively.
EqualLCT will accelerate the roll out of heat pumps combined alongside energy efficiency and flexibility products to facilitate the transition to net zero.
While also ensuring that peak heat demand is reduced thereby reducing the levels of network reinforcement that would otherwise be needed.
Attractive commercial offerings will facilitate the net zero transition, reduce bills for customers through reduced network reinforcement costs and in home energy efficiency.
Top image: Credit: Laurence Dutton, E+ via Getty Images
