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NETWORK / 11 / DECEMBER 2017 / JANUARY 2018 A s 2017 draws to a close and 2018 draws closer, now seems a good opportunity to re ect on the achievements of our energy networks over the last year and what that might mean for the future. If there was to be one theme that applies as much to this year as it does to next, it is that of innovation. Network innovation in our sector means that the UK is rapidly emerging as a world leader in developing the smarter gas and electricity networks that will lay the foundations for our energy future. The - nancial bene- ts to billpayers of network inno- vation are huge. Independent research carried out by Pöyry has shown that innovation projects by local electric- ity networks could deliver up to £1.7 billion of bene- ts to our energy system by 2031. KPMG research has shown that if we ensure that the role of our gas networks evolves to help deliver the decarbonisation of our economy, then that approach could save con- sumers as much as £200bn by 2050. Running networks Delivering on that potential comes in two forms. First, is the need to use innovation to ensure that we continue to run our networks in the most eŒ cient and cost eŽ ective way for consumers. But we must do so whilst delivering new investment that guarantees the high standards of performance that they have come to expect. Network companies have a strong track record in this respect – since privatisation they have reduced the cost of running the network to the billpayer by almost a - " h and by 2020 they will have delivered £80bn of invest- ment. Network resilience for both our gas and electric- ity networks has improved markedly, with customers expecting an unscheduled interruption to their power supply once every two years and to their gas supply once every 45 years. These improvements have contin- ued to take place as network companies have connected some 28GW of distributed generation in recent years. Second, is how we respond to the challenges of decarbonisation in a way that builds on those achieve- ments. This year network companies have published dra" versions of their joint gas and electricity network innovation strategies to ensure that this is the case. These documents set out road maps showing how network operators will use innovation to address chal- lenges and uncertainties facing the industry. Collaboration is key Industry collaboration is key, which is why the UK's largest electricity and gas smart grid conference the Low Carbon Networks Innovation Conference, held ear- lier this month (December) in Telford, has an important role in bringing together some of the UK's leading stake- holders in energy innovation. Projects on display in- cluded examples of how electricity network companies are using innovation to provide quicker and cheaper network connections for generators, integrate battery storage into the grid, enable more eŽ ective planning for electric vehicles. They showcased how gas networks are investigating the use of hybrid heating systems, converting the gas network for use with hydrogen and investigating the use of new combinations of gasses in residential networks. Collaboration extends to other areas too. ENA's Open Networks Project will change the way our distribution network operators work as they transition to become distribution system operators, underpinning the deliv- ery of a smart grid in all corners of the country. Identi- - ed by the Department of Business, Energy & Industrial Strategy as a key policy initiative for the delivery of the smart grid, the pub- lication of the project's - rst annual report at LCNI marks the end of a - rst year which has seen network compa- nies come together to de- ne how our energy grids can act as a platform for a whole new range of technologies responsible for delivering decarbonisa- tion, whilst enabling new markets that reduce costs for consumers. All of these developments set out just how our network companies are not just playing a role helping to deliver the wave of innovation that is sweeping our sector, but are acting as agents for that innovation. Whilst the focus on energy innovation and the pace of change it engenders sometimes falls on other parts of the energy sector, make no mistake - our energy networks are lead- ing the way too, and in a way that ensures our energy market is - t for the future. "Network resilience for both our gas and electricity networks has improved markedly, with customers expecting an unscheduled interruption to their power supply once every two years and to their gas supply once every 45 years." B U I L D I N G A N E N E RGY M A R K E T F I T FO R T H E F U T U R E DAVID SMITH, CHIEF EXECUTIVE, ENERGY NET WORKS ASSOCIATION