UK Power Networks has secured discovery-phase backing from Ofgem’s Strategic Innovation Fund for four projects designed to slash carbon, bolster grid resilience and unlock fresh flexibility across Britain’s energy system.
The regulator’s seed money will help UK Power Networks and its partners prove each concept’s technical and commercial viability before they compete for larger development grants later this year.
The projects getting funding from Ofgem
Hot Chips – turning server heat into winter warmth
As part of the funding, Ofgem is going to give UK Power Networks cash to explore how waste energy from data centres could be captured, stored and piped through low-temperature networks to nearby homes, boosting the efficiency of domestic heat pumps and easing strain on the electricity grid.
The project is called ‘Hot Chips’, and comes at a perfect time – as the heat generated by data centres is expected to increase in the coming years thanks to increased server density in the wake of AI’s rising dominance.
In addition to ‘Hot Chips’, UK Power Networks has secured funding for three additional projects:
SHARED – hydrogen backup for rural communities
Smart Hydrogen and Resilient Energy Delivery (SHARED) aims to generate low-cost green hydrogen during off-peak periods and store it for use during outages or at critical sites such as water-pumping stations, giving remote areas a cleaner alternative to diesel generators.
Conductor – batteries for Britain’s railways
Conductor will investigate installing third-party battery systems at traction bulk supply points. By charging off-peak and discharging as trains accelerate, the scheme could trim railway peak loads, avoid costly network upgrades and even export surplus solar power back to the grid.
Super DuPPR – unlocking hidden reserves
Dual Purpose Power Reserves focuses on the large fleets of standby generators owned by organisations such as BT. The project will test how this backup power can safely support the wider system during lulls in renewable output without compromising site resilience.
“Securing funding for all four of our Discovery Phase projects is a huge milestone for us, and a testament to the strength of our innovative approach to tackling some of the UK’s most pressing energy challenges,” said Luca Grella, Head of Innovation at UK Power Networks.
“These projects will build on our existing efforts to enable the transition to a low-carbon, more flexible energy system. We’re excited to move forward with these initiatives, knowing they will not only support our nationwide commitment to net zero but also deliver practical, scalable solutions that benefit both our customers and the wider energy network,”
Rich Marsh, Responsible Business Director at BT Group, added, “Collaboration across organisations and sectors is vital to tackle the sustainability challenges facing the UK. Working alongside UK Power Networks will give us the opportunity to find smarter ways to support the energy system and help pave the way to a greener and more resilient future.”
