Ofgem to fund new geothermal energy project

GeoGrid, a project to explore the benefits and applications of geothermal energy for decarbonisation in the UK, has been awarded £3.7 million in funding.

Geosolutions Leeds will collaborate with Northern Powergrid, LCP Delta, E.ON Next, Leeds City Council and Star Refrigeration on the project. 

GeoGrid will use the University’s Geothermal Campus living lab to understand how long-term thermal energy storage can improve the energy system’s efficiency and sustainability. 

Addressing electricity and heating demands 

As heating and transport systems become more electrified, the flexibility that thermal energy could offer will be key to making the UK’s energy system compatible with net zero. 

Some of the issues associated with the energy transition include rising electricity demands, rising costs, and inefficiencies in renewable energy conversion. 

GeoGrid will use data from the University’s Geothermal Campus living lab to understand how thermal energy storage could be implemented on a bigger scale as a solution to these obstacles. 

By integrating geothermal storage into the energy system, GeoGrid aims to lower network connection costs, reduce costly reinforcement, and enhance grid resilience. 

The project will demonstrate how new value streams from the system and market interaction can help improve the business case for district heating. 

Innovative solutions for net zero 

GeoGrid has received £3.7m from Ofgem’s Strategic Innovation Fund (SIF), which is designed to accelerate the transition to net zero by supporting innovation in the electricity and gas sectors. 

It focuses on developing practical, scalable solutions that address key challenges such as decarbonisation, system resilience, and affordability. 

GeoGrid brings together academic, industry and policy partners to understand how renewable energy can be stored and deployed more effectively at a lower cost, supporting decarbonisation goals while balancing supply and demand. 

“The abundant benefits it will bring are becoming more tangible every day” 

Geosolutions and the Geothermal Campus is led by researchers in the Faculties of Environment and Engineering and Physical Sciences. 

Dr Emma Bramham, Lecturer in Applied Geophysics and Structural Geology, and GeoGrid Project Lead for the University of Leeds, said: “This innovative collaboration will use the University’s unique Geothermal Living Lab facilities to explore new ways of improving energy system efficiency and sustainability. 

“The ability to store excess renewable energy beneath the city’s streets will help make best use of green electricity resources and speed up the UK’s transition to Net Zero. 

“By working together on this project, we aim to find solutions that provide nationwide benefits.” 

Steve Newall, Innovation Manager at Northern Powergrid, said:  “More accurate demand estimations will make flexible energy use more feasible, expand electrical capacity and reduce the cost of decarbonisation.   

“We are moving to the ‘Demonstrate and Deploy’ stage of innovation for this project, so the abundant benefits it will bring are becoming more tangible every day.”