The main objective of this project is to develop the innovation environment based on the expertise of smart grid technology at the University of Vaasa. The parallel project (Smart Energy Systems Platform — SESP) is primarily developing a physical research environment and complements the construction of a world-class T&K&I environment by deepening knowledge in selected areas of smart grid technology. This can be achieved through the implementation of work packages to address various technological developments in cooperation with companies. Business cooperation also aims to involve a wider group of companies in the innovation environment. The project will provide new knowledge and concepts for the technology industry, promote the introduction of new technologies to improve the reliability of electricity distribution networks and at the same time serve the needs of electricity users and society. The project is divided into four work packages: “Micro-electricity Networks”, “Big Data Applications” and “Information and Networking”. The cable network work package will create new know-how in areas such as network protection and fault detection, ground barrier current compensation and reactive power compensation for new technologies, and outlines future smart transformer solutions. The micro-electricity grids section will map system functionalities, including the connection to home automation, and develop control and control techniques on the basis of them. The third work package explores the possibilities of applying Big Data technology to the needs of the operation and maintenance of the electricity grid and examines suitable IT solutions. The project’s communication and networking measures will be implemented in its own work package. The main result of the project is an innovation environment based on solid skills, in which the project has accumulated knowledge, concepts and technical capabilities in relation to the smart grid technology elements examined in the work packages. This environment will be used in future research into new innovations in smart grid technology in cooperation with industry. Examples of concrete results of the project are solutions developed and demonstrated in the work packages for cable networks, micro-electric networks and condition monitoring of network components. The result is a concept for future smart transformers and a demonstration of the use of FPGA technology in the processing of electricity grid measurements.