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Innovation Value Tracking

We’re now two years into the RIIO-2 Price control period and we’re reflecting on the successes we’ve had with implementing our RIIO-1 activities and ensuring value in our RIIO-2 Portfolio.

 

Following the close out of RIIO-1, we carried out an assessment of the projects undertaken during this price control period and have considered the learning from both the successful and unsuccessful outcomes. Our Operational Innovation team is now supporting the business to implement these projects and share successes through our published case studies. 

The National Transmission System (NTS) has a vital role to play in the overall UK energy system by providing gas to industrial and domestic customers, for electricity production through our power connections and in future, potentially enabling hydrogen transport infrastructure to be more readily accessed. We started our journey to a Net Zero NTS in RIIO-1 and are now focused on demonstrating our network capability through the RIIO-2 period, so we’re ready to deliver Project Union and other net zero transition projects.

In RIIO-2, our Network Innovation Allowance (NIA) and Strategic Innovation Fund (SIF) activities are heavily focused on building the safety, technical and commercial case for the NTS to carry hydrogen and other net zero gases. The deployment of this is targeted for 2026. The benefits associated with these innovation projects are unlikely to be seen during the RIIO-2 period but will be tracked robustly through the life of the projects and afterwards into business as usual.

In the period before deployment, we collaborate and share our project activities across the UK and wider energy system. This year we’ve used working groups, conferences, and stakeholder sessions, to share information on the main technologies we’ve developed. These working groups provide a forum for exchanging knowledge, developing ideas, and accessing a wide range of research and development programmes. They also allow us to seek funding contributions where needed. Wherever we can, we aim to provide value across the energy networks by sharing our learning and collaborating with others.

Over the past year, we’ve continued to embed our innovations within our core business, through subject-matter-expert forums and internal conferences. Building a culture of innovation across the business and ensuring engagement with wider teams within the business is vital to ensuring successful implementation.  We are actively benchmarking our innovation approach against other companies across the energy sectors, to ensure we provide value to UK energy consumers.

Our RIIO-1 value tracking case studies

Strategic

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Customer and commercial

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Security