As the energy crisis worsens moving into the winter period, a Midlands Engine report has revealed that a digitised smart energy network could save billions in energy costs across the region.
The Smart Energy – An Energy System for the 21st Century report, puts forward a plan for the midlands to become the UK’s first smart energy region providing a significant boost in tackling soaring energy bills and climate change.
The report was co-authored by the Midlands Engine, an economic growth partnership for the region, Siemens and the University of Birmingham.
Smart energy systems can include microgrids, EVs and smart meters and would include the use of digital technologies and artificial intelligence to balance energy needs across a network. Should this be scaled, the report disclosed that consumers and businesses could save up to £70 billion in energy costs.
“The Midlands Engine partnership is committed to growing our region’s economy while ensuring a net zero transition for the next generation,” said Sir John Peace, chairman of the Midlands Engine partnership.
“The exceptional work of partners to lay the groundwork for smart energy, combined with our world-leading research and manufacturing base, means we are well placed to build on our history of powering the UK by driving forward the implementation of smart energy systems.
“Smart technologies will also make an immediate impact, enabling users to better manage energy demand at a time of high inflation.”
Smart meters have seen increasing interest from energy consumers as a means to manage soaring energy bills by presenting opportunities to utilise low cost energy from the grid.
Because of this, Smart Metering Systems (SMS) said in September it had seen solid growth across the first half of 2022 with the company citing in its half year results that the run rate for smart meter installations increased to over 40,000 per month since Q2 2022.
Smart meters make up a part of a smart energy system by factoring in various aspects to reduce energy bills and decarbonise a home or building. This includes using energy that is both green and cheaper.
In order to maximise efficiency of this rollout, the report called for a number of initial steps to set the region on the right path. This included the rollout of large-scale Smart Energy Pathfinder projects, the creation of a regional energy data taskforce and the formation of a smart energy skills programme.
It highlighted the need for public sector support for decentralised energy systems, especially through more local renewable energy generation.
“The UK energy system is changing at an unprecedented pace. The ongoing energy crisis has shown how crucial it is that we secure a robust domestic supply of cheap energy, as well as reinforce our commitment to net zero emissions by 2050,” said Lord Bilimoria, chancellor of the University of Birmingham and president of the Confederation of British Industry.
“Smart energy systems are a crucial step on the way to achieving these aims, while providing regional growth and supporting high-skilled jobs. It’s fantastic to see the Midlands leading the way in their development, with the University of Birmingham, Siemens and the Midlands Engine combining their expertise to make potentially transformative policy recommendations.”
