Energy regulator Ofgem and the Business Department have unveiled plans to create a more-independent electricity market operator within the National Grid, which currently runs the system, in order to “boost competition and benefit consumers”.

A new legally distinct operator could be set up with its own board by April 2019. It would carry out existing functions such as balancing power supplies, plus new roles such as promoting ‘smart’ solutions to manage increasingly complex energy flows.

Dermot Nolan, chief executive of Ofgem (pictured), said: “We need a more-flexible energy system so that we can make the transition to a lower-carbon future. It will also help to ensure that customers get the most out of new ‘smart’ technologies.”

Meanwhile, the National Grid has invested $100 million in a joint venture with US solar firm Sunrun that is aimed at increasing the use of roof-top solar panels in the USA.

The partnership includes a joint marketing agreement and a $100 million equity investment from National Grid in around 200MW of Sunrun’s existing residential solar installations.

As well as operating electricity networks in the UK, the National Grid serves customers in New York, Massachusetts and Rhode Island.

The joint venture with Sunrun is the utility group’s first move into the American solar-power market.