This report examines the priority areas and transition trends of Distribution Network Operators (DNOs) within their innovation plans for the RIIO-ED2 price control period of 2023-28. DNOs vary in their categorisation of innovation projects. In order to identify common focus areas, this study establishes a unified classification of innovation themes across all the RIIO-ED2 plans of all DNOs (except National Grid Electricity Distribution (NGED) for which published information was unavailable when plans were reviewed for this report) and conducts comparative analyses to highlight the significance of each subject and individual DNOs’ focus.
This study traces the evolution of innovation area priorities since the conclusion of the Low-Carbon Networks Fund (LCNF) programme in 2015 to understand shifting trends. The proposed classification organises headlines into four innovation themes:
Digitalisation emerges as the most frequently addressed theme in published RIIO-ED2 innovation plans.
In comparison with the LCNF programme, areas like the role of batteries in network management and direct control of residential low carbon technologies have seen reduced emphasis. Some DNOs continue prioritising innovations related to active voltage control and real-time dynamic asset rating. Routine practices for customer interruption reduction and asset management are treated as business as usual.
In comparison to the LCNF programme, RIIO-ED2 innovation plans introduce innovation areas related to the DSO role, facilitation of flexibility markets and emerging digitalisation aspects like data handling and transparency. These, plus areas carried on from before, represent opportunities for innovators to work with DNOs. DNOs face a number of common challenges and show overlap in innovation themes, emphasising the importance of knowledge sharing to avoid duplication in research, development and demonstration and accelerate progress towards adoption of successful innovations.
Improved information sharing would enable innovators both within DNOs and potential collaborators outside to see where further opportunities exist and give confidence to network customers and other stakeholders that innovations proven to be useful and cost-effective are being taken forward.