With power and gas networks dating back to the early 1900s, the UK has one of the world’s oldest and most developed energy networks in the world. Now, with ambitious net zero power targets, energy networks need to evolve rapidly, requiring investment and innovation at scale to deliver.

The UK government has set out a manifesto pledge for all power to be net zero by 2030. Achieving this ambition will transform energy networks, with power generation increasingly coming from renewable sources, including 50GW of offshore wind connected by 2030.
Moreover, increases in flexible generation and consumption are changing the that way households and businesses interact with the energy system.

Delivering the scale and pace of change required necessitates innovation in the energy networks sector. Ofgem estimates that the UK will need to invest £170 – £210 billion in the grid by 2050 to achieve its net zero and energy goals. This investment will be split between infrastructure upgrades, and specifically targeting scaling and accelerating innovation to support UK start-ups. In support of this objective, Ofgem and Innovate UK launched the Strategic Innovation fund in 2021, which is set to invest £450 million in UK start-ups by 2026.

The Green Finance Institute, in partnership with Breakthrough Energy and Regen, has been working to convene UK government, Ofgem, InnovateUK, investors, insurers, networks and innovators to identify and solve for barriers to investment in the sector.