Smart microgrid study launched to help North East industry cut emissions and boost energy resilience
Energy transition Networks Net zero Climate change
A discovery-phase project led by Northern Powergrid, LCP Delta and Newcastle University – VOLT (Vector-Optimised Microgrid Operations for Industrial Low-carbon Transition) – has received funding from Ofgem’s Strategic Innovation Fund (SIF).
The project will help industrial and commercial sites in the North East cut carbon emissions, boost energy resilience, increase flexibility and save money.
It will explore how microgrids—local energy systems that can operate independently or alongside the main grid—can combine renewable energy, storage, hydrogen, and smart technologies to deliver cleaner, more flexible, and reliable energy at high-emission sites such as ports, airports, and manufacturing hubs.
The study will assess how microgrids can deliver practical benefits such as reducing peak energy demand, lowering network running costs and cutting carbon emissions. Early estimates suggest that industrial and commercial sites could save 10–15% on energy bills while reducing emissions by up to 10,000 tonnes of CO₂ each year. Sites using microgrids could also benefit from lower network charges and generate new income through participation in flexibility and grid-balancing services.
The project will also look into any regulatory or infrastructure challenges that could slow progress, helping to develop a framework that could be applied across other industrial regions in the UK. The discovery phase will run over three months.
