Our Power Technology business is a leading energy sector consultancy, providing specialist research, engineering and technical services in every aspect of power plant development, operation and maintenance.

Power Technology is working to improve the environmental performance of our generation portfolio and one example is through the 'e.Locator' initiative - or 'low-carbon advanced technology options research'. The programme focuses on cleaner fossil fuel generation, the use of renewables, the possibilities of nuclear power, the storage and transmission of energy, and energy-efficiency initiatives for homes and offices.

Power Technology is also involved in other initiatives in partnership with other leaders in the field, which include:

• The EU sponsored Thermie/AD 700 project, which aims to develop ultra-supercritical coal-fired power stations with steam temperatures up to 700 degrees Celcius - funding from E.ON UK: £12K for 2006
• The COST 536 ACCEPT programme, a multi-partner European project with DTI funding that focuses on developing advanced materials for clean coal plants - funding from E.ON UK: £20K for 2006
• Working as a member of the European Technology Platform for Zero Emission Fossil Fuel Power Plant (ZEFFPP), which seeks to identify technology and market mechanisms for transporting CO₂ safely from the source of production to long-term storage locations and analysing the environmental impacts of this activity - funding from E.ON UK: £10K for 2006
• ASSOCOGS, a project in association with the Research Fund for Coal and Steel, looking at ways of capturing CO₂ produced from oxyfuel combustion plants with advanced supercritical boiler and turbine technology - funding from E.ON UK: £180K for 2006
• SEPCOM, a DTI-supported project investigating new and emerging technologies in the field of CO₂ separation and hydrogen-fired gas turbines - funding from E.ON UK: £40K for 2006 (project start delayed to 2007)

We are also closely involved in the Energy Research Partnership (ERP), a high-level forum that brings together key players from the Government, industry and academia to support UK energy research, development and implementation. The ERP is co-chaired by our Chief Executive, Dr Paul Golby, and Professor Sir David King, the UK Government's Chief Scientific Adviser. Through our involvement, we aim to help the UK become a leading developer of innovative new technologies.

We are also involved in a £10 million partnership over five years with the Engineering and Physical Science Research Council (EPSRC) on energy-related research and development, and we are a founder partner (at £5m per year) of the Energy Technologies Institute (ETI).

Central Networks initiatives in partnership

Research and development is also important in building electricity distribution networks to meet the needs of future customers in a changing energy world. Through Ofgem's Innovation Funding Incentive, Central Networks has developed a portfolio of projects that address many of the challenges of the future. Some of these projects involve collaboration with other electricity distributors, while others are being undertaken by academic institutions to assess new and imaginative approaches to the management and structure of electricity networks. We also work closely with equipment manufacturers to develop technologies that assess the use of energy storage and the control of the energy input from distributed generation.

Central Networks is also developing an innovative system within its Registered Power Zone, which assesses the true operating conditions of a major circuit exporting wind power from the east coast, and allows more generation to be connected. We also recognise the need to support the strengthening of the research capabilities of our academic institutions, and are supporting a new development initiative that will sponsor a range of distribution-related projects at a number of our leading universities.