The Innovation Highway project will utilise AI and machine-learning to optimise the full innovation value chain. The platform developed will help facilitate collaboration amongst networks, and other sectors such as water companies so they can innovate together. AI-empowered algorithms will simplify the identification, mapping, assessment and selection of problems and ideas, reducing manual processing time and enhancing effective decision making; this will support identifying and prioritising projects that will deliver the highest benefits. The platform will also help networks automate the development of cost benefit analysis. 

Benefits

1. Reduction in time needed to process ideas 
This benefit is based upon the time saved engaging with innovators unnecessarily and sifting through ideas prior to selection of what should and shouldn’t be approved and developed into a project. This would be informed by insights from previous projects, identification of similar historical ideas, and potential solutions that already exist. 
 
The calculation of this benefit is based on the average number of ideas that have been rejected over 2021/2022. The project will reduce the time taken by an innovation engineer to review and reject these ideas by 60%. This is a recurring annual benefit.  
 
2. Reduction in number of ideas unnecessarily progressed through governance 
The project will create a 60% efficiency saving from investing resource in taking ideas through governance that then get rejected. The annual saving is based on the average number of ideas developed through Gate A and Gate B (these are UK Power Networks’ internal governance stage gates) that did not commence into full projects over 2019-2022.  
 
3. Reduction in cost to develop project CBAs 
The project will create a 60% efficiency saving via the AI tech flex that would look to automate the development of CBAs, reducing the need for human involvement. The cost saving is based on the average time spent creating CBAs over 2019-2022, assuming a continuous annual cost saving after deployment. 
 
4. Uneconomic Project Spend Reduction 
Over ED1, based on E6 reports, there was a total of £4.95 million spent on projects that returned no benefits. The project will reduce the spend on projects that return no benefits by 40% by focusing on projects that are more likely to deliver value through better problem identification and ideation. This will result in more projects having benefits.  
 
For UK Power Networks, this could result in a £0.83m saving over RIIO-ED2 
Base cost (PV) £3.76m 
Method cost (PV) £2.93m 
 
For UK Power Networks, this could result in a £1.63m saving over RIIO-ED3 
Base cost (PV) £4.00m 
Method cost (PV) £2.37m 
 
Similar benefits are anticipated for the other participating networks, where the value will be based on their relevant size compared to UK Power Networks. 
 
These benefits would apply across the entire innovation portfolio whether funded via the Network Innovation Allowance, the Strategic Innovation Fund or business funded innovation. Further refinement and communication of benefits will be undertaken during the Feasibility stage (Stage 1) of the project.