Since 2014, the Department of Energy and Climate Change (DECC) and Ofgem — the industry regulator — have worked hard in the Development Phase of a smart grid in London.
This first phase is part of an intensive plan to deploy over 50 million smart electricity and gas meters in residences across the United Kingdom. Although Brexit and the COVID-19 pandemic have delayed progress, London has led the drive towards a smart city status.
Besides the DECC and Ofgem efforts, many private enterprises are also introducing programs to aid in London’s quest to reach its net-zero target.
This is part of a 1990 U.K. government commitment to reduce greenhouse gas emissions by 100% by 2050. What programs are assisting in driving London’s smart grid?
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How Smart Grid Plans Could Influence Travel
The Tube in London consumes as much as 1.2 Terawatt hours of electricity annually, meaning it uses the equivalent of around 437,000 homes in the capital city. If you include trams, other trains and buses, the figure reaches 1.6 Terawatt hours per year, making Transport for London (Tfl) the city’s largest electricity consumer.
TFL sources its power directly from the National Grid, so the smart grid’s Internet-of-Things-driven smart meters and monitoring devices mean more efficient and sustainable energy production and distribution.
As a visitor to London, this translates to cheaper and more sustainable travel for you and the city’s residents. These benefits will likely increase with a proposed switch to more eco-friendly renewable solar and wind power, which is anticipated in the smart grid’s future, making visiting the Outernet or Madame Tussauds more affordable.

National Grid and Private Smart Grid Programmes
While the smart grid will improve travel in the capital, you’ll also find many other reasons for its incorporation.
This technology targets electricity consumption monitoring and optimisation, improved sustainability and environmental impact, reliable energy and service delivery, and lowered operating costs to decrease overheads and energy bills.
London Power Tunnels Project (LPT)
The National Grid has completed tunnelling for the seven-year, £1 billion LPT, and underground tunnels and substations — including one using Hitachi Energy’s SF6-free gas-insulated switchgear technology — should be ready for operation in 2026.
These tunnels will house new high-voltage cables to expand capacity and increase reliability for the smart grid while reducing power consumption through upgraded cables.
The Hybrid Intelligent Transformer (HIT)
Recently, IONATE — a London-based startup pioneering grid technology supporting environmental and energy requirements in modern grid infrastructure — raised millions to advance its AI-driven technology for the smart grid.
Its HIT replaces traditional types by combining data management with voltage, reactive energy and harmonic control in a single unit.
Doing so enables real-time control of the HIT in stabilising electricity flows through grids and in power generation, data centres, and operations.
Using AI through IONATE’s Aurora software platform further boosts the capacity for renewable energy while improving network efficiency through its smart grid features.
Even some of the oldest and most traditional establishments you can visit in the capital city will appreciate the savings the smart grid will offer.
ElectronConnect
Electron — a company providing marketplace software for electricity flexibility and distribution — aims to promote the world’s evolution to net zero with its ElectronConnect market platform.
The configurable system supplies a method of optimising network capacity and variable renewable power use for flexible energy users, network and system operators, and renewable generators.
In other words, you’ll be able to receive more renewable energy through the grid based on the time and your location.
The time and location-based smart solution will add clean technologies to smart grids while decreasing congestion and lowering bills. When Electron began its development of ElectronConnect six years ago, the business models, policies and technologies it needed were unclear.
Nowadays, with renewable power generation and a greater move towards electric vehicles reaching heightened levels, networks are increasingly congested, defining flexibility market needs to advance the net-zero status.
Energy Banking
Allye Energy — another London-based brand — is driving a smart grid intelligent management system to reinvent the storage and sharing of electricity and optimise its use within the community and commercial sectors.
You’ll need AI-powered software and a battery that Allye Energy would install alongside legacy grid infrastructure or at corporate premises to store or “bank” energy.
This power-banking model creates or adds to a smart grid, allowing energy storage at a fraction of the price. The system also provides electricity deposits and withdrawals from shared network batteries.
Doing so creates community empowerment by accelerating the drive towards greater renewable energy use and providing a smarter grid, alleviating pressure on the existing supply.
Sitigrid Microgrid
The smart Microgrid programme will enable communities to harness local renewables in line with smart grid power reforms, sustainably, efficiently and cost-effectively.
London startup Sitigrid aims to pair green providers with consumers to form a local energy market in regional capacities. Doing so will alleviate strain on the National Grid and assist transformation efforts to a smart grid status.
Microgrids would connect to the National Grid but operate independently using a large-scale shared battery, renewable energy sources, and community heat pumps.
By leveraging advanced smart technology, the Microgrid programme would deliver cheaper, clean-heating options and power to entire communities. Microgrids promise to integrate renewable energy and optimise usage — you’ll enjoy cleaner energy at a fraction of the current electricity price.
AI-Based Programmes Allow London’s Smart Grid to Gain Momentum
London’s planners are still investigating and accepting viable private AI-driven energy alternatives. The programmes devised by city institutions and startups align with smart grid goals and will assist in reaching net-zero targets.
They offer alternative options for communities and businesses looking to utilise sustainable sources and reduce electricity overheads. With these and other programmes driving the city’s smart grid reforms, you’ll likely enjoy an even more eco-friendly London soon.