Plan for smart energy tech to save £40 billion

A plan that has been launched to bring smart energy technology into homes and businesses is set to save up to £40 billion.

The plan, set out by the government and Ofgem, seeks to upgrade the energy system, put consumers in control and support innovative new technologies as part of the Industry Strategy.

It will transform how homes and businesses store and use energy, by developing a smarter, more flexible energy system. The system will remove barriers to smart and battery technology, which will reduce costs for consumers.

Over a quarter of the UK’s electricity is being generated through renewable energies such as wind and solar, and new technologies that help to store and manage energy are emerging and costs are falling.

The changes provide an opportunity to create new businesses and jobs in the UK. It will also help the country to save up to £40 billion on energy costs by bringing out smart technologies, like smart meters and appliances you can control from your mobile phone.

The plan will help consumers use energy when it is cheapest or get rewarded for returning it to the grid when it is needed. It also recognises the role that energy storage can play in a smart energy grid and the opportunities presented by falling costs of battery technologies designed to store surplus energy.

The plan will also make it easier for new businesses to help customers that are interested in reducing, or increasing, their energy use at certain times, helping to balance the calls on the electricity network.

As part of the Industrial Strategy, the government has committed to modernising the UK’s energy system and developing a business environment where new entrants to the market can compete, also creating thousands of jobs.

Greg Clark, secretary for business and energy, said: “Upgrading our energy system to make sure it is fit for the future is a key part of our Industrial Strategy to deliver a smarter, more flexible energy system. A smarter energy system will create new businesses and high-skilled jobs, while making sure our infrastructure is able to cope with demand.

“We are determined through our Industrial Strategy to address the challenges we face and ensure our energy is reliable, affordable and clean.”

Andrew Wright, senior partner of energy systems at Ofgem, said: “The way we are generating and using energy in Britain is changing rapidly. Today’s plan sets out how Ofgem, government and the industry will work together to modernise the energy system and make sure consumers get the benefits of the changes.

“We want to open the door to new technologies and services so that they can help to reduce bills for consumers in the long term. It is vital that we get the changes in place as there is potential for a smarter system to save consumers billions between now and 2050.”