LCP Delta won funding from the Department for Energy Security and Net Zero (DESNZ) on Alternative Energy Markets innovation programme

• LCP Delta undertook research across energy networks and other key industry stakeholders to help develop ENA’s Energy Innovation Atlas.
• LCP Delta’s work lead the development, harmonisation and implementation of GB’s energy networks strategic innovation initiatives to provide the greatest opportunity for the UK to hit Net Zero by 2050.

14th May 2024 – Improving connections, AI-enabled optimisation, leveraging storage and customer centricity, communications and engagement are some of the critical areas of focus needed in energy innovation to reach net zero, according to the Energy Networks Association (ENA), which has launched its Energy Innovation Atlas, a report developed by LCP Delta.

Undertaking extensive research and industry engagement on behalf of ENA, LCP Delta engaged with more than 300 industry representatives to seek their views on innovation within the energy sector in order to achieve net zero. The study sought input on five key pillars of innovation; developing assets and infrastructure, facilitating digitalisation, managing assets and optimising systems, meeting customer’s needs, and attracting talent and investment. Through an online consultation, along with eight workshops, LCP Delta and ENA explored these key pillars to identify 24 innovation ‘way points’ where there are particular challenges that need to be addressed and developed a vision on what is required to get there.

Key findings from the report and areas for future innovation that would be needed to meet the objective of achieving net zero by 2050 include:

• Developing a fit for purpose supply chain by 2028, that can support the unprecedented expansion of physical infrastructure and enable the transformation of energy networks.
• Cross-sector and cross-industry communication to allow more efficient and effective network operations and support a whole systems approach. This could include the development of new channels of communication, as well as require the creation of new teams within networks.
• Increasing market access by opening up the energy market to smaller innovative businesses so that they can participate fairly and easily, as well as easing innovation funding avenues which are currently restrictive for smaller players.
• Developing a clear regulatory definition of energy storage, enabling energy networks to own and operate storage in order to better leverage it across the network, with a proposed deadline of 2032.
• Delivering better two-way communication with customers and the wider public to ensure they understand plans to decarbonise the energy system and the role that they will play. This will require new skills and functions to engage with customers and collect and share data.

Commenting on the report’s findings, Tom Veli, Head of Energy Networks at LCP Delta said: “Energy networks are at a critical point with demand beginning to rapidly increase as the low-carbon economy picks up further, particularly with consumers wanting to connect more assets to the network. This means that networks are facing the challenge of rapidly developing their networks as they look to accommodate the surging demand.

“To cope with this monumental shift and the added responsibilities placed on networks, particularly when it comes to having more assets and interactions with customers, the industry, alongside regulators and policymakers, must drive a concerted effort into delivering the innovations that are needed. The project with ENA and the networks industry involved stakeholder engagement across the industry alongside strategic and forward thinking and literature review to develop a roadmap for the future. Within the roadmap we have identified 24 ‘way points’ where we see the need and opportunity for crucial innovation, both on the network operational and technology side, as well as with regulators in looking at the energy system differently. One clear takeaway is the need for networks to work across industry and systems to deliver innovation efficiently.”

Read the full report here.