Ofgem has introduced two further incentive mechanisms in addition to the Distributed Generation incentive:
- the Innovation Funding Incentive (IFI) and
- Registered Power Zones (RPZ).
The primary aim of these two new incentives is to encourage the Distribution Network Operators (DNOs) to apply technical innovation in the way they pursue investment in and the operation of their networks.
The two main business drivers for providing these incentives at this time are the growing need to efficiently manage the renewal of network assets and to provide connections for an increasing capacity of generation at all distribution voltage levels. These are significant challenges that will benefit from
innovation.
IFIs are intended to encourage research and development in a wide variety of distribution relates activities.
RPZs are focused specifically on the connection of generation to distribution systems and are intended to encourage DNOs to develop and demonstrate new, more cost effective ways of connecting and operating generation that will deliver specific benefits to new distributed generators and broader benefits to consumers generally.