The NextGrid Alliance (NGA), set up by National Grid in 2020 to address energy transition, now has 100 utility companies from around the world as active members.

The NGA aims to bring together utilities and start-ups and has made headway attracting participation from global utilities, including Duke Energy, EDF, ConEd and Southern California Edison.

The organisation was founded by National Grid Partners (NGP), the corporate venture and innovation arm of National Grid, as a platform to fight climate change and scale energy innovation faster.

“The climate challenge is too big for any one company to solve,” said Lisa Lambert, chief technology officer at National Grid and NGA president. “Utilities around the world are realising significant value by sharing strategies and becoming co-innovators with start-up leaders to scale technology across the energy ecosystem.”

NGP has also introduced its two latest portfolio investments to accelerate the clean energy transition: UK firm EV Energy and Washington-based Modern Hydrogen.

EV Energy incentivises electric vehicle drivers to charge at optimal times based on energy price and emissions. Its software platform services utilities such as National Grid, ConEdison New York and Volkswagen Naturstrom Elli to provide managed charging for their customers. Drivers with home solar arrays also can use EV Energy to optimise their EV charging with clean energy, reducing their power bills and reliance on fossil fuels. The company was founded by National Grid alumnus Nick Woolley and software engineer Chris Darby.

Modern Hydrogen is a cleantech company focused on heat and hydrogen. It helps utilities and commercial and industrial heating equipment companies that rely on natural gas today and are looking for ways to reduce emissions quickly. Modern’s system decarbonises natural gas and biogas to produce clean hydrogen onsite, by removing the carbon before it can be become CO₂. The company’s other investors include Bill Gates, Miura and NGA member NextEra Energy.

“Utilities have historically avoided risk to prioritise reliability and compliance, but now we’re in the midst of cultural and business sea-change,” Lambert said. “For the first time, they’re incentivised to innovate and adopt clean energy, but many are seeking direction on where to start. By convening the NextGrid Alliance and investing in start-ups like these, we’re fostering progress across the industry.”

Alexina Jackson, vice president at AES, added: “We place great value in collaboration and in nurturing innovation. The alliance and its working groups give us the opportunity to explore ideas with other utilities and start-ups. Together, we can look at the future vision of the energy transition and, in the near-term, what catalysing technologies are going to get us there.”

The NGA provides member forums such as quarterly working groups and technology days, where utilities and start-ups can dive deeply into some of the most compelling challenges in the industry and accelerate innovations. Today, five working groups bring together executives focused on net-zero carbon emissions, transmission networks, cyber security, innovation and corporate venture capital.

NGP has backed 42 companies since its 2018 launch, with seven successful exits and a portfolio of unicorns valued at more than $1bn.

“The NGA really opens up the industry in a unique way,” said James Dean, CEO of London-based start-up Sensat. “It’s a thesis around: Where can we as utilities do better?”

Sensat automates how infrastructure is planned, built, and managed by creating digital twins to enable faster, more effective decision making. The company has worked with National Grid on major infrastructure projects in the UK, where Sensat’s visualisation software platform streamlined the planning process and reduced costs. Sensat subsequently joined the NGP investment portfolio and will soon present its platform to other utilities at an NGA transmission working group.

“These utilities all have the same challenges, and the alliance gives them an opportunity to work together,” said Dean. “There’s no other forum for them to do this.”

NGP is headquartered in Silicon Valley and has offices in Boston, London and New York.