The West Midlands region possesses significant potential in smart energy systems, with a strong foundation of established utilities, emerging innovators, world-class research institutions, and indeed Energy Systems Catapult itself. However, this emerging sector faces fragmentation, with many organisations working in isolation rather than as a coordinated ecosystem that can drive regional economic growth and energy system transformation.

The region needs to better connect its existing smart energy system activities and assets, create a clear value proposition for businesses and investors, and establish sustainable support mechanisms for start-ups and SMEs who often lack the resources to fully engage in collaborative initiatives.

For the West Midlands to establish itself as a national leader in smart energy systems, it requires a coordinated approach that brings together public bodies, private companies, and academic institutions to share knowledge, identify regional strengths, and develop and deliver a strategic roadmap to supercharge growth.

The innovation

The West Midlands Combined Authority (WMCA), in partnership with Energy Systems Catapult, is pioneering a novel approach to cluster development focused specifically on the region’s smart energy systems capability. This represents an innovative intersection of regional economic strategy and energy system transformation.

The cluster encompasses a broad definition of smart energy systems, including technologies, data applications, products, and services designed to enable flexibility and smart control of the energy system across various settings. This covers smart meters, smart grids, micro-grids, heat pumps, sensors, digital twins, demand management technologies, and energy monitoring.

What makes this approach innovative is its focus on establishing the West Midlands as a demonstrator environment where solutions can be developed, tested, and scaled. The region’s unique combination of traditional utilities adapting to Net Zero requirements, emerging clean tech companies, grid constraints critical to overcome for decarbonisation. and major research assets creates fertile ground for innovation in this critical sector.

The solution

Energy Systems Catapult has worked with WMCA to deliver a comprehensive stakeholder engagement programme that will shape the future development of the Smart Energy Systems cluster. This includes:

• Conducting workshops and one-to-one interviews with key stakeholders to identify regional strengths, challenges, and opportunities and establish the cluster
• Testing the value proposition of the cluster with businesses and other organisations in the region
• Developing a roadmap of interventions to accelerate cluster growth and business development
• Identifying investment opportunities and mechanisms to create a sustainable innovation ecosystem

The programme builds on existing regional energy leadership through Energy Capital and leverages the region’s significant clean tech research hubs, including Tyseley Energy Park, Aston Energy and Bioproducts Research Institute, and Energy Systems Catapult itself.

The work aligns with the broader regional energy strategy , representing the “demand-side” of the equation, where overcoming acute grid constraints in the region will create a pull for smart energy system solutions to enable decarbonisation. The cluster will serve as the “supply-side”, bringing forward businesses and solutions that can deliver for the West Midlands first, but then export their smart energy system offers into the UK and beyond in a critical sector for the Net Zero transition.

The impact

This project is establishing the foundations for significant long-term impact in the West Midlands:

• Economic growth: By strengthening the smart energy systems cluster, the region will attract investment, create jobs, and develop new market opportunities for local businesses.
• Energy system transformation: The cluster will accelerate the development and deployment of smart energy solutions, contributing to more efficient, flexible, and decarbonised energy systems across the region.
• Innovation leadership: The West Midlands will strengthen its position as a key innovation hub for smart energy systems, attracting talent, inward investment, and fostering collaborative research and development.
• Regional partnerships: New collaborations between public bodies, private companies, and academic institutions will create lasting value beyond individual projects or initiatives.

The initial six-month programme is expected to lead to further collaborative activities throughout 2025/26 and beyond, creating sustainable momentum for the cluster. This work complements and builds upon existing regional initiatives including Repowering the Black Country, the Regional Energy Systems Operator (RESO) project, and strategic public-private partnerships such as WMCA’s agreement with SSE.

The West Midlands Smart Energy Systems cluster represents a significant opportunity to translate the region’s technical and research strengths into practical, market-ready solutions that address the critical challenge of creating smarter, more flexible energy systems.