Ofgem to provide $450 million in funding to energy companies helping their customers go green

Energy companies including suppliers who are actively supporting their domestic and business customers go green will be eligible for funding from Ofgem with the money set to be available for the next five years. However, if enough suppliers provide robust plans the fund could be extended longer.

Companies wanting access to the fund will need to be deliver ‘bold and ambitious’ plans that are scalable for UK-wide use. Some ideas already suggested include ways to improve battery technology or methods to improve the uptake of heat pumps into consumers homes.

“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,” said Ofgem chief executive, Jonathan Brearley.

The fund, which opened for application on 31st August, is part of Ofgem’s RII02 price controls for the electricity system operator and the network companies that operate GB’s energy pipes and wires. The fund will be approved by Ofgem and managed in partnership with Innovate UK.

‘We’ve forged an exciting new strategic partnership with UKRI (UK Research and Innovation), who’ll harness their expertise to deliver the programme and transform the landscape, from the generation of an idea to market rollout.

We also know that the green journey will impact every part of society and we need to find a way of casting our engagement net as far as possible – including those developing and affected by innovation. To get the best ideas, then these need to be coming in from the widest range of innovation players possible.

Innovation will be at the heart of our approach to delivering net zero. There’s so much opportunity, and Ofgem is taking all the steps we need to find good answers - getting the right alignment in place across the whole system, embracing the widest set of people and perspectives as we can along the way,’ said Ofgem in a blog post.

Also read: Energy Price Forecast Winter 2021: Covid-19 aftermath, harsh weather and low supplies all point to rising Energy Bills

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