IMPACT
Technology-led distruption
National Grid innovation lead powers up round table series at University of Nottingham Innovation Park
T
he first in a series of Innovation Round Tables hosted by the University of Nottingham Innovation Park (UNIP) heard one of the senior figures at National Grid suggest that the energy market could be the next major sector to experience technologyled disruption. Dr Stephen Marland, part of National Grid’s Corporate Development team responsible for innovation and technology, outlined how the organisation which owns and operates the electricity and gas transmission networks in the UK drives innovation.
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HOW WILL UTILITIES REINVENT TRADITIONAL APPROACHES TO INNOVATION?
“Utilities aren’t necessarily well-known for innovation,” he said. “We tend to be frugal, and despite the longevity of the businesses we operate we tend to focus on near-term delivery and be highly riskaverse. But change is coming. “The energy market has yet to be truly disrupted. We’ve seen the introduction of competition in the generation and retail side of the market, but what will happen when renewable generation no longer requires subsidy, or when having solar panels is cheaper than
not selling them, and when electric cars reach mass market adoption? “Who will you buy your energy from then? At some point, you’ll be able to buy electricity from the likes of BMW or Nissan. So, markets are converging and change is coming fast.”
WHAT DRIVES INNOVATION IN THE ENERGY SECTOR?
Dr Marland said that while innovation is often driven by a desire to create value, significant numbers of projects fail to progress. Nevertheless, National Grid’s own gas business reckons its return ratio on investment in innovation will be 4:1. Its approach to innovation focuses on research, development and demonstration, with projects being adopted by a business unit once they have reached demonstration stage. While innovations can be incremental or transformative, organisations also