Energy supplier Southern Electric - a division of SSE - has unveiled a £30 million project to develop a new low carbon electricity network that it claims will "revolutionise" the way power is distributed and used.
The scheme, taking place in the Thames Valley, will help prepare power grids for the increased use of renewable energy sources such as solar and wind technology.
It will examine how energy consumption can be reduced in peak times to prevent bottleneck on the grid and develop solutions for large commercial users to help them better monitor their usage and use more electricity at off-peak times.
Rachel Fletcher, Ofgem's acting senior partner for Smarter Grids, Governance and Distribution, said: "The aim here is to ensure the networks do not hold up decarbonisation of our energy use and that the cost of the transition is kept as low as possible for customers."
Green energy sources may be increasingly important in the coming years, as chief executive of RenewableUK Maria McCaffery said in an article for the Huffington Post the UK will need to reduce its reliance on imported fossil fuels in order to combat rising prices.
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