Energy Innovation Needs Assessment: Overview

This project provides evidence to identify the key innovation needs across the UK’s energy system, to inform the prioritisation of public sector investment in low-carbon innovation including any future phases of the Department for Business, Energy & Industrial Strategy (BEIS) Energy Innovation1 Programme. The BEIS Energy Innovation Programme aims to accelerate the commercialisation of innovative clean energy technologies and processes into the 2020s and 2030s. The current Programme, with a budget of £505 million from 2015-2021, consists of six themes and invests in smart systems, industry & CCS (Carbon, Capture and Storage), the built environment, nuclear, renewables, and support for energy entrepreneurs and green financing.

Vivid Economics was contracted to lead a consortium with technical expertise in each of the Energy Innovation Needs Assessment (EINA) priority areas. The programme relied on evidence from a programme of workshops with over 180 participants, energy system modelling, and detailed technical advice. Partners include the Carbon Trust, E4tech, Imperial College London, and Fraser-Nash. The Energy Systems Catapult (ESC) provided analytical evidence using their Energy System Modelling Environment (ESME) to support an early pre-screening of technologies.

Innovations have been prioritised where there is a strong case for UK Government investment. The prioritisation in this report is based on evidence of the potential benefits to the UK, via a lower cost energy system and larger export markets. We also consider whether there is a need for UK Government intervention, in addition to private and international efforts.
 
A distinctive feature of this project is its focus on innovation that benefits the whole energy system. Internationally, there are other efforts attempting to answer the question of where to target resources to maximise benefits from innovation2. In selecting priorities, we identify innovations that can unlock value across electricity, heat, transport sectors and the rest of the economy.