Ground-breaking Innovation Measurement Framework is set to propel the UK energy industry towards net-zero target
The EIC (formerly the Energy Innovation Centre), together with the Energy Networks Association (ENA), Ofgem, and consultancy firm Baringa, have supported the industry in developing the world’s first industry wide Innovation Measurement Framework. It will help tackle one of the industry’s biggest challenges - decarbonisation.
The new dashboard driven framework goes beyond assessing financial benefits to incorporate societal, environmental and cultural impact measures. Innovation projects that may not have met ROI targets before, but had wider societal and environmental benefits, will now have a transparent rationale to be taken forward.
The simple dashboard enables third parties to access and understand the total effect of an innovation. Ofgem and other third-party stakeholders will also have clear sight of the innovation pipeline across all networks.
Duncan Sinclair, Partner of Energy Retail and Networks at business consultancy firm, Baringa Partners said:
“Previous attempts to measure innovation have tended to focus narrowly on demonstrating positive economic benefits. But not all innovation succeeds, and as much can be learned from innovation projects that have failed. Innovation strategies cease to be innovative if they are too risk averse. The IMF looks at innovation in the round, from strategy and culture through to failing fast, collaborating with others and embedding innovation into Business as Usual. It fosters a more balanced and holistic picture of how network companies are driving innovation.”
Denise Massey, managing director at the EIC, said:
“We are facing a climate emergency that we will only overcome by working together. The Innovation Measurement Framework aligns the interests of all stakeholders in order to accelerate innovation, helping the UK to reach its net zero carbon target and recover from the current crisis. As the UK energy sector and SMEs adapt to new ways of working following the COVID-19 outbreak, the need for a more holistic approach to innovation measurement has never been more important. This project captures everything we stand for at
the EIC: encouraging collaboration, supporting positive change within the industry, and being the voice of the innovator community. The EIC has handed over the framework to ENA to ensure that the framework is embedded as ‘business as usual’ across all energy networks.”
Randolph Brazier, Head of Innovation at the Energy Networks Association comments:
“The Innovation Measurement Framework is a UK first and is vital to help track the outcomes of network companies’ innovation projects. It will help to ensure speedy and efficient innovation. Consumers will have access to consistent information which will enable them to understand how the projects benefit them, and which will also enable the network companies to monitor and track the successes of the projects they’re running. The EIC played a crucial role in devising the Framework which has now been finalised and adopted by the network companies.”
To find out more about the Innovation Measurement Framework, click here to read the case study.