The funding will be provided to nine projects under the Ofgem’s Network Innovation Competition (NIC), which encourages innovation to reduce costs for consumer and helping in achieving low carbon future by energy network companies.

The projects include developing a commercially viable facility capable of processing waste and then convert it to gas which will be significantly distributed through the existing gas network to consumers.

Other projects includes delivering solutions capable managing excessive temperatures at distribution substations; testing new designs of pylons that are smaller, better for the environment and others.

Ofgem distribution senior partner Maxine Frerk said: "Investments in networks have a real potential to connect more renewable generators, and enhance security of supply in a more cost efficient way.

"The nine projects receiving funding today show how new sources and uses of gas together with smarter grids can benefit consumers by making the energy system more secure and cost effective.

"As with all the projects we have funded we expect to see learning from these projects being shared across industry and are pleased to see many of the earlier projects now being rolled out across companies and delivering real benefits for consumers."

Two annual NICs have been introduced by Ofgem including one for electricity network companies (Electricity NIC) and one for gas network companies (Gas NIC).

Image: Ofgem intends to deliver smarter energy network for consumers. Photo: courtesy of Witthaya Phonsawat/ FreeDigitalPhotos.net.