Our first Whole Systems Innovation Strategy and Annual Summary

Innovation plays a vital role in accelerating the journey towards a sustainable energy system for everyone in Great Britain (GB).

Through extensive engagement with industry, we’ve developed an Innovation Strategy that identifies key challenges and uncertainties facing the energy system and sets out how innovation can help address them. 

We’ve also published an Innovation Annual Summary, which looks back on the previous year’s achievements, showcasing the evolution of our innovation portfolio and featuring case studies on our standout projects.

Our first Whole Systems Innovation Strategy

This year’s Innovation Strategy is our first since becoming NESO and the first to take a whole systems view. It sets out not just where we will focus our own innovation efforts, but where we believe the whole industry must take collective action.

The strategy identifies six innovation priorities. These areas require accelerated innovation to achieve clean power by 2030 and begin preparing the whole energy system for net zero by 2050.

We’re actively looking to partner with industry and academia on projects that align with these priorities. If you have an idea for a project, view the Whole Systems Innovation Strategy 2025/2026 in full and submit a proposal via our Big Idea form.

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Maximising the impact of innovation initiatives

The strategy also outlines five innovation enablers. These range from promoting an innovation culture to sharing insights on future technologies and equipping the workforce with new skills. While not the direct focus of future projects, the sector must work together to create these conditions to maximise the impact of innovation initiatives.

The Innovation Annual Summary

In this year's Innovation Annual Summary, we refreshed our innovation portfolio to reflect our transition to NESO, incorporating a new focus on whole energy systems. You can see our achievements and key projects that are driving progress. These initiatives are designed to address the dynamic challenges of the energy transition, and support the delivery of clean power including:

• Virtual Energy System’s Data Sharing Infrastructure Pilot: A project pioneering scalable data sharing through a pilot infrastructure, crucial for digitalisation and data sharing in achieving net zero.
• FastPress: Utilising artificial intelligence (AI) to enhance National Transmission System network planning, with a focus on integrating hydrogen and meeting future methane needs.
• CrowdFlex: Establishing domestic flexibility as a reliable grid management resource, supporting consumers in reducing energy bills and contributing to GB’s net zero goals.
• Network Security in a Quantum Future: A project developing innovative tools to manage quantum threats to the energy network, ensuring system resilience and emergency preparedness.
• Volta Programme: Demonstrating the potential of AI-driven insights and automation to optimise real-time operations and address future energy system challenges.
   

Collaboration driving innovation

Our commitment to innovation can be seen by a remarkable year of growth, with 61 Network Innovation Allowance (NIA) projects, 15 Strategic Innovation Fund (SIF) projects, and 83 'Big Ideas' generated, many from third-party collaborators.

By working with 74 different partners from academia, energy networks, non-profits, and private companies, we’re expanding our network and exploring new development opportunities to benefit GB. 

Help us shape the future energy system

If you have an idea for a project that aligns with our innovation priorities, fill out the Big Idea form to submit a proposal, or contact the Innovation team via email for more ways to participate. Alternatively, visit our Innovation website page to learn more about our process, funding mechanisms and how you can get involved.

Whole Systems Innovation Strategy 2025/2026

Innovation Summary