Energy networks face a once-in-a-generation challenge: enabling a decarbonised energy system while maintaining security of supply and keeping bills affordable for customers.
Meeting this challenge will require innovation at scale: not just incremental change, but ambitious, transformational innovation that reshapes how the energy system is planned and operated. It will require close collaboration across the whole energy system, particularly between gas and electricity networks, alongside regulators, government and innovators.
This is not a challenge any single part of the system can solve alone. It is a whole-energy system challenge.
The Energy Networks Innovation Taskforce and Networks Reimagined
This sort of transformational innovation is exactly what Ofgem’s Energy Networks Innovation Taskforce, convened across the course of the last six to nine months, was brought to life to deliver.
The Taskforce brought together industry and stakeholders to shape a set of long-term, ambitious missions for the energy networks to deliver game-changing innovation, for the benefit of customers.
Its work culminated in Ofgem’s Networks Reimagined report, setting out five long-term innovation challenges for energy networks. These will underpin the direction of innovation funding through the Strategic Innovation Fund (SIF) over the RIIO-3 period and are already shaping sector priorities at a senior level, including across Ofgem, UKRI and the energy networks.
Future Energy Networks (FEN) was pleased to contribute to this work, both directly and through member representation on key working groups. It provides an important foundation for aligning innovation priorities across the sector.
It is within this context that the Gas Networks Innovation Strategy has been developed.
Introducing the Gas Networks Innovation Strategy
In March, the GB Gas Networks Innovation Strategy was published, setting out how Britain’s gas networks will use innovation to support the transition to a modern energy system.
Developed by the five gas network companies and shaped by input from more than 130 stakeholders, it aligns with the early RIIO-3 period (2026–2028) and the wider energy transition.
Innovation is not only critical for decarbonisation. It is also essential for building a flexible whole-energy system, improving safety and resilience, and supporting vulnerable customers. Increasingly, this means working across gas and electricity networks to deliver integrated solutions.
Gas networks will continue to play a central role in Britain’s energy system for decades to come. They have a strong track record of adapting to major transitions, including the move from town gas to natural gas, and will continue to evolve as the system decarbonises.
This strategy sets out how innovation will support that evolution, alongside the longer-term direction set by Networks Reimagined. The two are closely linked: the strategy focuses on near-term delivery (2026–2028), while Networks Reimagined defines the longer-term outcomes innovation must achieve.
Five core innovation themes
The strategy is structured around five themes that guide innovation across the gas networks.
1. Reducing environmental footprint
A key priority is accelerating low-carbon gases such as biomethane and hydrogen, alongside broader emissions reduction.
Methane reduction is central. The Digital Platform for Leakage Analytics (DPLA), led by Cadent, is improving how emissions are detected and reduced.
Alongside this, networks are improving asset integrity and operational decarbonisation through cleaner construction, better monitoring and more efficient maintenance. These efforts increasingly benefit from collaboration across gas and electricity networks, particularly through shared data and system insights.
2. Digital by default
Digital transformation is essential to future network operation. Advanced analytics, AI and digital twins will underpin more resilient and efficient systems.
For example, National Gas’ Collaborative Visual Data Twin project demonstrates how digital modelling can support decision-making and hydrogen-ready infrastructure planning.
A digital-by-default approach also strengthens innovation itself, enabling faster iteration, better evidence and improved cross-sector collaboration between gas and electricity networks. This aligns strongly with the Networks Reimagined ambition for more autonomous, data-driven networks.
3. Whole-system pathways
A decarbonised energy system will require far greater coordination between gas and electricity networks, supported by stronger whole-system modelling and planning.
Innovation enables improved forecasting, scenario analysis and integrated system planning. Wales and West Utilities’ Pathfinder tool illustrates how whole-system modelling can inform long-term decarbonisation decisions.
Strengthening these tools will be key to building the evidence base for hydrogen, biomethane and hybrid heating, and directly supports the Networks Reimagined ambition for system-wide optimisation.
4. Equitable energy for everyone
Innovation must ensure the energy transition delivers fair outcomes, particularly for vulnerable customers.
This includes improving communication, enhancing customer service and reducing disruption during system change.
Northern Gas Networks’ Customer Vulnerability Mapping Tool helps identify vulnerable customers and understand local resilience challenges.
As networks become more digital and interconnected, ensuring accessibility and fairness becomes even more important. This principle is reinforced in Networks Reimagined and is central to delivering a just energy transition across gas and electricity systems.
5. Flexible and seamless connections
Gas networks must become more flexible to integrate increasing volumes of low-carbon gases safely and efficiently.
Innovation is key to enabling faster, more efficient connections and supporting decentralised production.
SGN’s Biomethane Islands concept shows how locally produced biomethane could supply isolated parts of the network, supporting resilient low-carbon systems.
Connections also feature strongly in Networks Reimagined, which highlights the need for faster, more responsive connections for industrial and commercial users. Delivering this will require close coordination between gas and electricity networks to support both decarbonisation and economic growth.
Looking ahead
The SIF challenges set by the Energy Networks Innovation Taskforce sit alongside the five key themes in the Gas Networks Innovation Strategy to outline a clear set of innovation needs for the gas networks in the coming years, with whole systems thinking at the core.
The challenge now is to build on this foundation: accelerating deployment, strengthening cross-sector collaboration, and ensuring innovation delivers tangible benefits for customers, communities and the wider economy.