A systems design company that set up its global headquarters in Edinburgh earlier this year has unveiled the prototype of technology it says has vast potential for the energy sector, particularly around renewables.

Faraday Grid yesterday held a live demonstration of its Faraday Exchanger at the National Museum of Scotland in Edinburgh, with more than 100 energy sector specialists, academics and investors from around the world attending.

Faraday said the Exchanger “smooths the volatile electricity flows of renewable energy”, enabling the integration of much higher levels of this type of energy onto the grid at no extra cost.

Andrew Scobie, executive chairman, told The Scotsman: “We have technology that allows the world to have clean, cheap energy, and that’s just the most extraordinary massive breakthrough.”

The firm added that the Exchanger addresses the volatility involved in renewable energy by regulating electricity voltage, power factor and frequency in a single device that integrates into existing electricity networks. The business also believes it could cut the average UK household electricity bill by more than £30 a year, as well as make annual carbon savings in the many millions of tonnes.

Scobie added that the technology could, in the UK alone, reduce the equivalent of the amount of carbon generated by all of Scotland every year.

“We’re the only people, really, in the entire energy sector talking about bringing energy costs down and making it cleaner at the same time.”

Faraday Grid was founded in Australia but chose the Scottish capital as its base, citing factors such as the highly skilled talent pool and the academic tradition of the University of Edinburgh.

It now has about 30 staff in the city, expected to grow to about 100 by the end of next year. The firm is also set in February to open its US base, in Washington, DC.

Scobie added: “Our launch in Edinburgh would not be possible were it not for pioneers such as Hume, Smith and Maxwell. 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.”

The plan now is to move to commercial deployment next year, targeting global markets including Australia, Japan, India, Canada and the US. “We have global expectations about the rollout,” Scobie said.