Business energy and domestic needs alike could depend on the development of smart grids to help distribute power throughout the UK in the coming years.
ITI Energy will be spending £3 million on research into smart grid technology, while energy industry regulator Ofgem has set aside £500 million to help fund the establishment of four smart grid cities around the UK, reports the Scotsman.
Energy regulations may need to be revised to encourage more energy suppliers to invest, because at the moment it is harder to companies to make a healthy return on their investment and so there is far less motivation to spend.
The sector could also collaborate with city authorities to make smart grids work as energy firms face a deficit of over £70 per household in a large city if they choose to take on the investment themselves.
The government plans a balance of nuclear power and renewable energy to safeguard the UK's energy future in the coming years and the first new nuclear reactor is scheduled to come online in 2017.
If you want to find out more about switching energy suppliers and how you could save up to £378 in minutes, click here.