A prototype of a new grid technology which is expected to save energy consumers £1 billion a year has been launched.

Faraday Grid claims its Faraday Exchanger has the potential to allow electricity grids to integrate much higher levels of renewable energy at no additional cost.

It adds the savings could be made by replacing technology developed more than a century ago with a network of its devices.

The Exchanger maintains target voltage, frequency and power efficiently over a range of applications.

When the prototype is commercially available, the company says it will be in a position to replace 867,000 transformers currently scheduled to be changed in the next two decades.

That could help save 54 million tonnes of carbon – equivalent to the emissions of around nine million people.

Executive Chairman Andrew Scobie said: “With the launch of the Faraday Exchanger, we are unashamedly seeking to change the course of history enabling society to integrate and access much more clean and affordable renewable energy than ever before.

“Widespread adoption of the Exchanger could generate a saving of more than £30 on the average UK household electricity bill as well as make significant annual carbon savings in the many millions of tonnes.”