Innovating for a sustainable future

Innovation has become the driving force behind progress in the quest for a sustainable and resilient energy future.

The International Energy Agency’s (IEA) recent report on the state of energy technology innovation offers valuable insights into the evolving landscape of research and development – from advancements in battery technologies to the integration of artificial intelligence (AI) in energy systems.

The energy transition is likely to be supported by a range of technologies that are still in early or developmental stages – highlighting the importance of research and development, along with investor confidence to maintain the progress with these as-yet embedded technologies.

The IEA report draws more than 150 energy innovation highlights from the past year, covering 45 countries. Its main headline is that public and business energy R&D expenditure has increased in recent years by 6% a year in real terms. Recent data shows direct government spending on energy R&D worldwide increased again in 2024, exceeding 50 billion dollars in the previous year.

As IEA executive director Fatih Birol says, “innovation is the lifeblood of the energy sector . . . offering hope for improvements in energy security, affordability and sustainability over the long term. But we require investment, both public and private, to scale up innovative solutions. The payback may not always be quick, but it will be lasting.”

The energy sector is undergoing a transformative shift, with companies like E.ON at the forefront of that global increase in R&D spending. Whether our approach is in-house, through partnerships, or joining public-private working groups, we’re always looking to come up with new ways to benefit our customers, opening avenues to sources of innovation and collaboration, and enabling us to chart a better pathway through the transition.

E.ON's role in Europe's energy innovation

Across Europe, energy companies are playing an essential role in driving this transformation. E.ON, one of the leading energy providers, has been particularly active in investing in cutting-edge technologies that support the transition to low-carbon energy systems. Here are just a few examples:

Capturing waste heat

Half of Europe's energy is used for heating and cooling, mostly from non-renewable sources. At the same time there is much waste heat in our cities that go untapped – for example from data centres, factories, even Tube stations.

Developed by E.ON, ectogrid™ is a heating and cooling solution for city districts and industries that reduces the supplied energy by up to 75% by adapting to the conditions of the local environment and making the most of the energy available in its surroundings. New energy is only added into the system when all available energy has been fully shared between buildings or harnessed from available energy sources in the vicinity.

Artificial Intelligence

AI is an integral part of digital solutions across the energy sector, from grid connection, grid planning, energy management and customer service.

For example, by analysing historical data and considering factors such as weather patterns, seasonal variations, and consumer behaviour, AI systems can improve grid stability and reduce energy waste. In the future, AI could also play a significant role in smart homes and smart cities, helping to optimise energy consumption at the household and community levels.

For industrial customers, AI applications in manufacturing processes can include automation, enhanced predictive capabilities and flexible scalability, increasing efficiency.

Carbon capture and sustainable fuels

E.ON is a partner in the HyLion alliance which is planning develop a renewable energy source to create e-methanol, a more sustainable and alternative fuel to petrol and diesel for use in shipping, aviation, even motorsport.

This sustainable fuel can be used for a variety of applications, helping industries to transition away from fossil fuels and playing a significant role in reducing carbon footprints.

At the heart of this project is using renewable energy – in this case from our biomass plant in Lockerbie – to create green hydrogen and what’s called ‘biogenic CO2’ which is the carbon dioxide from organic material, from sources like the whisky production process and from biomass power plants. Because the CO2 is biogenic, the fuel produced is carbon neutral.

Circular economy in solar

Working with The University of Cambridge Institute for Sustainability Leadership (CISL) and IfM Engage, a team from E.ON Group Innovation has been exploring the challenges and circular solutions associated with the expected increase in end-of-life solar PV waste over the coming years, highlighting the need to avoid causing further environmental issues whilst addressing the climate crisis. You can read more here https://gloo.to/FXAU

Amber - putting customers in control

E.ON Next’s partnership with Australian start-up Amber offers solar and battery, and EV customers real-time access to dynamic energy prices, meaning they can take advantage of charging when the cost of energy is cheaper and selling power when prices are higher – unlocking the full value of their home batteries.

This ground-breaking approach has the potential to reduce energy bills and also contribute to a more sustainable system.

Superdielectrics partnership

Our work with Superdielectrics, the Cambridge-based energy storage technology company, is designed as a wide-ranging collaboration agreement to promote and develop this British-developed battery solution which is ultimately intended to give millions of homes access to safer, cheap and clean power – without the need for rare earth minerals.

Superdielectrics’ revolutionary polymer-based storage technology aims to lower electricity cost below that of fossil fuel generated electricity - reducing fuel poverty in the UK. From its early trials, Superdielectrics estimates its technology could save UK consumers up to 85% on their domestic energy bills, while substantially reducing emissions.

Free Electrons

The Free Electrons Programme is another successful example of the partnership approach to developing promising solutions and innovative technologies. Free Electrons is the world’s largest open innovation programme designed to bring disruptive energy solutions to market.

Selected start-ups work alongside leading energy utilities to deliver innovative solutions that advance the energy transition – culminating in an accelerated path for start-ups to develop and scale their businesses, pilot solutions and access potential investment opportunities.

We have already seen a number of successful projects come from Free Electrons, most recently our project with Kestrix on plans to carry out thermal drone scans of thousands of homes across Coventry.

Battery storage

E.ON is leading in innovative approaches to the energy transition to protect the affordability of energy. As renewable energy generation becomes more intermittent, the ability to store excess energy for use during periods of high demand is critical. That is the thinking behind  . People can not only buy and use power when it’s abundant and cheaper, but also store and even sell it, saving them money and at the same time providing more flexibility and a more robust energy grid that makes best use of abundant renewable energy.

Energy Systems Nexus

We are part of the Energy Systems Nexus, a new, industry-funded, net zero collaboration initiative that takes a whole systems approach to delivering robust evidence and cutting-edge analysis for the energy sector. Our view is that for the energy transition to be successful it has to be a force for making energy affordable, not just something for people with high incomes and large houses. E.ON UK is collaborating with the UK National Nuclear Laboratory and Energy Systems Catapult in this initiative.

 

Sustaining the innovation momentum

The IEA report underscores the importance of sustaining innovation momentum in the global energy sector. While there are promising advancements in areas like AI, battery storage, and carbon capture, the path to scaling up these technologies requires continued investment, collaboration, and supportive policies. E.ON’s planned investments in renewable energy, energy storage, and cutting-edge technologies like AI and carbon capture are examples of how energy companies are playing an essential role in driving the transition to a sustainable energy future.

As the global energy mix evolves, the need for innovation will only grow more pressing. By fostering a culture of creativity, investment, and cooperation, companies like E.ON can help lead the charge in shaping an energy system that is not only sustainable and resilient but also equitable and accessible for future generations.

 

 

José Davila is E.ON UK’s Director of Strategy and Innovation. His career includes more than 25 years in energy, water and utilities, with spells in innovation consulting. José has worked in FTSE-100s and multinationals, run his own business and taken a sustainability start-up to first revenues.