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Smart Energy Systems

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For more information or to get in touch to find out how you can support the Smart Energy Systems Cluster please email planforgrowth@wmca.org.uk.

The Smart Energy Systems cluster covers technology, data, products and services to support smarter, more efficient and flexible energy usage across systems in commercial industrial and urban settings. This includes the production, use of and services around applications such as smart meters, smart grids, micro-grids, sensors, digital twins, demand management technologies and energy monitoring among others.

While The Plan for Growth initially identified Modern and Low Carbon Utilities as a priority cluster, additional research in conjunction with regional key stakeholders has narrowed and clarified the definition of this cluster to focus on Smart Energy Systems.

There is an established set of companies operating in this space in the West Midlands and a growing number of start-ups, supported by best practice leadership through Energy Capital and academic / research excellence related to the wider energy system. Smart energy systems are an important, growing part of this ecosystem that will enable greater efficiencies, growth and societal benefit.

The region starts from a strong position as home to traditional utilities which are adopting net zero solutions, as well as emerging energy management and clean tech start-ups and SMEs. The cluster also builds on existing regional opportunities set out around industrial energy efficiency.

Opportunity

Smart energy systems and flexibility is a critical area for decarbonisation, and an area of UK and West Midlands leadership and expertise. The West Midlands has a unique opportunity to establish itself as a demonstrator environment, form a leading cluster and encourage business investment to trade market solutions to the need for smart, flexible energy systems.

  • The West Midlands boasts significant clean-tech research hubs like Tyseley Energy Park and Aston Energy and Bioproducts Research Institute, along with the Energy Systems Catapult in Birmingham. Commercializing these innovations and fostering new startups within the cluster can drive regional growth.
  • Regional public-private partnerships, such as the WMCA’s agreement with SSE and Coventry City Council's partnership with EON, offer commercial smart system solutions that enhance business activities and leverage strong commercial expertise.
  • The region can also capitalize on key industry-led projects like Repowering the Black Country and the Regional Energy Systems Operator (RESO) project to stimulate further commercial growth.

Regional Competitive Advantage

  • The West Midlands already demonstrates specialisation in companies that trade products and services to address energy systems issues, including those in energy management, clean-tech and strategic services to support these kind of solutions.
  • While research and innovation strengths and assets, major policy initiatives, and long-standing traditional energy and infrastructure companies continue to create a fertile environment for attracting talent and bringing new products to the market.
  • This also recognises the limited capacity for the West Midlands to generate low carbon energy at scale and with a competitive edge. Although opportunities for commercial growth in low carbon energy generation can be explored in the medium term.
  • The smart energy systems cluster will be an increasingly important enabler of efficient management of energy to support the wider economy across industries and their competitive advantages. This is particularly pertinent given the growing significance of energy efficiency, energy security and drive to net zero.

The WMCA has worked at pace with key partners to develop a cluster vision and agreed structures to steer cluster growth forward, and in October 2024 began working with the Energy Systems Catapult as the smart energy systems cluster lead for the region.

Key priorities for the WMCA and the Energy Systems Catapult are to work with stakeholders to deliver interventions which support businesses within the cluster, identify opportunities for investment and support an innovative ecosystem that reflects the technical and research strengths in the region. This cluster development will complement and work in parallel to the ongoing work of Energy Capital.

An initial asset mapping of the cluster has also been undertaken in 2024: with an interactive online version available by clicking here.