SSE and Dimplex have planned to work together on developing systems for storing energy from the electricity grid in, for example, thermal storage heating devices or water heating devices and work together on investment in, and the development and manufacture of new heating products using new technologies.

In this way, the companies expect to develop systems and products such as heat pumps, which can maximize the use of zero carbon electricity when it is available from technologies such as wind and solar photovoltaics and have the ability to store it for use during periods of peak demand.

They are also aiming to invest in communication systems required to make these technologies work together to achieve the maximum energy efficiency.

SSE chief executive Ian Marchant said that the transition to a low carbon energy system is already under way, and electricity produced from renewable sources is at its heart.