Executive Summary

• Ofgem, alongside Innovate UK, has launched cycle six of its Strategic Innovation Fund, with projects tackling accelerated connections, faster build and maintenance, and instant use of domestic energy devices announced
• Alongside this, the regulator has launched two consultations, on a framework for a Central Asset Register (CAR) and enabling greater self-build of transmission connections respectively
• The initiatives, particularly around new technologies and infrastructure, showcase the changing shape of Britain’s energy system

Ofgem has had a particularly busy October thus far, with several announcements and consultations exploring emerging electrical assets, transmission, and bolstering infrastructure.

Cycle six of the Ofgem Strategic Innovation Fund (SIF) was recently announced alongside Innovate UK, with 16 projects in total securing a total of £16.2 million in funding. The projects are looking to build upon the five innovation challenges as set out between now and 2033: industrial and business connection acceleration, faster build and maintenance, instant use of domestic energy devices, eliminating energy outages, and decentralised system balancing.

Challenge one is being explored with Data-Integrated Systems for Power Transmission and Community Heat (DISPATCH), which will investigate how data centres can be sited to provide low temperature waste heat through using network capacity more efficiently.

The second challenge is supported by Routing and Planning through Interoperable Data (RAPID), which will look towards development of a shared transmission data interoperability framework, while the third challenge will look to create a simpler plug-and-play EV charging experience beyond the home. Roaming Meter Point Administration Numbers (MPANs) will look to link household electricity accounts securely to public chargers, giving drivers access to their home account, smart tariffs, and rates.

Marzia Zafar, deputy director of digitalisation and innovation at Ofgem, noted how this cycle marks the start of a more coordinated approach to innovation. “By bringing networks, innovators and experts together around shared goals, we’re creating a clearer pathway from ideas to real-world deployment, helping deliver a cleaner, more reliable and affordable energy system while supporting economic growth across Great Britain,” said Zafar.

Alongside this, Ofgem has launched two consultations around electricity transmission.

The first is on a proposed framework for a Central Asset Register (CAR), shortlisted delivery options, and its emerging position on the preferred approach. Responses to a previous consultation in December indicated broad support for improving visibility for smaller assets through a CAR, reflecting challenges posed by the currently fragmented data landscape. Yet additional evidence on costs, benefit and value for money is required.

The work focuses on assets under 1MW, particularly those below 50kW where visibility gaps are largest, including EV chargers, solar panels, batteries and heat pumps. A CAR would improve how asset data is stored, reconciled, shared and assessed, enabling a single source of truth, strengthen the evidence base for decision-making, and provide a scalable foundation for future energy system needs.

There are two proposed solutions. The first is a proposal to deliver the CAR by building on the infrastructure of Elexon’s Flexibility Market Asset Registration (FMAR) platform, as well as through the existing EMPRIS platform from ElectraLink.

Ofgem argues the latter provides a lower delivery risk as it is based on enhancement of an existing operational platform, rather than the delivery of a new capability. While ElectraLink’s proposed funding arrangements appear more straightforward to implement, it is not directly regulated, meaning additional governance and assurance arrangements may be required.

Alongside lower delivery risk, Ofgem assesses the ElectraLink EMPRIS-based CAR as having higher cost confidence, as well as greater confidence that CAR can be delivered to required functionality within the proposed timetable. “Taking costs, delivery confidence, implementation risk and sensitivity analysis together, ElectraLink represents the strong value-for-money proposition,” Ofgem added.

The second consultation is around enabling greater self-build of transmission connections. Ofgem is putting forward proposals to change the scope of self-build and transfer, responding to market demand from generators, storage and demand customers who want quicker and cheaper delivery, as well as greater control.

Currently, the limit for self-build and transfer is to within 2km of the existing transmission system, which means the majority of connecting customers are not able to self-build and transfer all sole use assets from their site to the existing system.

According to NESO’s Demand Information Request Notice, 36 demand projects currently in the queue are interested in this option, supported by Ofgem’s own stakeholder engagement.

The consultation for self-build and transfer closes on 13 November, while the consultation for the CAR closes on 7 December.

Photo by Chris Boland on Unsplash