Northern Gas Networks and partners have secured Ofgem funding of £500k for the next phase of an innovation project demonstrating how hybrid dual-fuel microgrids can support improved energy resilience and planning for industrial sites, while also reducing emissions.
Project VOLT (Vector-Optimised Microgrid Operations for Industrial Low-carbon Transition) has entered its proof-of-concept phase, having been awarded an additional £500,000 from Ofgem’s Strategic Innovation Fund (SIF). This marks a significant next step in demonstrating how hybrid, dual‑fuel microgrids can support critical commercial and industrial sites in the North East, creating a scalable model for improved resilience and energy efficiency that could be replicated across Great Britain.
The new phase builds on earlier discovery work that looked at the financial, environmental and network benefits of microgrids. It found that sites could cut peak electricity demand by up to 30%, helping to ease pressure on the wider grid and avoid costly network upgrades. It also highlighted the potential for up to 80% reductions in carbon emissions and energy costs, depending on the site, as well as close to 100% coverage for critical operations during power outages.
Led by LCP Delta on behalf of Northern Powergrid, and involving Newcastle University, EDF, Northern Gas Networks and Wales & West Utilities, the project will now move into detailed modelling and analysis. Working with a diverse group of commercial and industrial sites, including the Port of Tyne, Newcastle Airport, Severfield, and Pulsant (a digital infrastructure operator supporting UK and global businesses), the project will assess the needs and potential challenges for future delivery. Using simulations, microgrids will be tested across the different sites. It will consider how energy demand, infrastructure constraints and planning decisions affect costs and network flexibility.
The findings will provide insights into how local and national energy systems can work together more effectively. These insights will help inform regional energy planning, decisions on future energy infrastructure and wider energy strategies in the North East and beyond. Ultimately, this next phase will help prepare for the transition to real-world trials.
Keith Owen, Head of Energy Futures at Northern Gas Networks, said: “Project VOLT presents a great opportunity for networks to work together in defining the potential for microgrids, both to strengthen energy resilience and reduce emissions through cross-vector collaboration.”
Emma Carr, Senior Consultant at LCP Delta and Project Director for VOLT, said:
“With demand rising, Project VOLT offers a real opportunity for regional and national networks to work together to strengthen infrastructure resilience.
“This phase allows us to work more closely with a wide range of industrial and commercial sites and set out a clear, practical route to real-world demonstrations, with the potential to be replicated across Great Britain and deliver wider economic value.”
Duncan Oliphant, Head of Commercial Flexibility at Northern Powergrid, said: “We’re proud to be leading VOLT as it progresses into its proof‑of‑concept phase.
“Flexibility sits at the core of this project, helping us design solutions that genuinely support large energy users and critical sites while easing pressure on the wider grid. By enabling these sites to manage their energy more efficiently, we can reduce peak demand, improve local resilience and free up capacity to connect more low‑carbon technologies.
“This funding gives us the opportunity to test those ideas in more depth with our partners, strengthening the evidence base for cleaner, smarter and more reliable energy systems that can be scaled across the region and, ultimately, Great Britain.”
Rebecca Rosling, Interim Director, EDF UK R&D, said: “EDF is committed to enabling an electric Britain through the accelerated development of electrification solutions for large energy consumers. Project VOLT is integral to this ambition, supporting the creation of scalable blueprints and frameworks for efficient management and multi vector optimisation in decarbonised industrial hubs and energy systems.”
Lewis Garvey, Net Zero Planning & Technologies Manager at Wales & West Utilities, said: “As part of our commitment to supporting Industrial & Commercial customers to decarbonise their processes, we’re focused on understanding how microgrid technology could not only enable the net zero energy transition, but also help companies become energy self-sufficient.
“We’re looking forward to supporting the next phase of Project Volt through modelling and assessing its replicability across our network, with the aim of providing resilient and stable energy to hard-to-abate industries for years to come.”
Haris Patsios, Professor in Smart Energy Systems, Joint Director of Newcastle University’s Centre of Excellence in Energy, said: “Accelerating clean power growth while maintaining energy system resilience requires us to come up with, and demonstrate, smarter ways to operate our energy networks at the local and regional level, on top of any other consideration. Working with our industry partners at Newcastle University’s Centre for Energy, we will be demonstrating new ways to transform and enable large commercial and industrial sites to operate as sources of flexible clean power, while also unlocking new pathways for growth.”
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