United Kingdom Smart Grids
Public and private organizations in the United Kingdom are investing in electric grid upgrades, creating significant business opportunities for U.S. companies that have developed innovative products, services or technologies related to the smart grids ICT segment. Increasing demand, constrained supply, emphasis on energy security and challenging carbon reduction targets are driving transformation in energy and utilities and smart grids technologies will play a key role in this space.
Target sectors holding high potential for U.S exporters include:
- Smart meters and advanced metering infrastructure
- Communication and data management software
- Grid optimization and automation technologies
- Demand response and control systems
- Energy management for distributed generation and storage
- Cyber security software and services
- Consumer engagement platforms and services
Purchasers of U.S. smart grid goods and services include generation, transmission, and distribution companies. The UK gas and electricity market is unbundled (non-vertically integrated) and the major stakeholders involved in the implementation of smart grids include:
- Suppliers: British Gas, EdF Energy, E.ON UK, RWE npower, Scottish Power and SSE (this six organizations are known as the “Big 6” and control 95% of the energy retail market);
- Transmission networks operators: National Grid, Scottish Power Transmission, Scottish Hydro Electric Transmission and Northern Ireland Electricity;
- Distribution networks operators: Electricity North West, Northern Ireland Electricity, Northern PowerGrid, SP Energy Networks, SSE Power Distribution, UK Power Networks and Western Power Distribution.
The UK Government has committed to an $18 billion nationwide smart meter roll-out, with energy suppliers responsible for the roll-out (both in terms of implementation and ownership as well as financing). The official national smart meter roll-out began in 2016 and was originally planned to finish in 2020. However suppliers now have an extra four years to keep installing meters. The roll-out start date was pushed back multiple times and there have been delays with many parts of the roll-out since. Completing the national roll-out is an enormous logistical and technical challenge for the energy industry, involving visits to around 30m homes and small businesses, and installing about 53m new meters.
The Energy Networks Association Smart Networks Portal lists the various UK smart grid projects and is a good resource to find information about the major players (potential buyers and partners for U.S. companies) involved in this space.
For more information contact Claudia.Colombo@trade.gov