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Low Carbon Networks Fund 

As part of the electricity distribution price control arrangements that run from 1 April 2010 to 31 March 2015, Ofgem established the Low Carbon Networks (LCN) Fund. The Fund allows up to £500m support to projects sponsored by the distribution network operators (DNOs) to try out new technology, operating and commercial arrangements. The objective of the projects is to help all DNOs understand what they need to do to provide security of supply at value for money as Great Britain (GB) moves to a low carbon economy.

 

There are two tiers of funding which are available under the LCN Fund. The First Tier is designed to enable DNOs to recover a proportion of expenditure incurred on small scale projects. Under the Second Tier of the LCN Fund, Ofgem facilitates an annual competition for an allocation of up to £64million to help fund a small number of flagship projects. In the first year, 4 projects were awarded Second Tier funding totalling £63.6million through the annual competition and 11 projects were registered under the First Tier. These projects involve the DNOs partnering with suppliers, generators, technology providers and other parties to explore how networks can facilitate the take up of low carbon and energy saving initiatives such as electric vehicles, heat pumps, micro and local generation and demand side management, as well as investigating the opportunities that smart meter roll out provide to network companies. As such the Fund should also provide valuable learning for the wider energy industry and other parties.

 

We will be monitoring the learning which starts to emerge from these projects in order to understand its impact on the current regulatory framework.

 

The governance arrangements for the LCN Fund are set out in the LCN Fund Governance document. 

 

What’s New

We have received seven innovative projects that are eligible to go forward to the Full Submission stage of this year’s Low Carbon Network Fund (LCN Fund). They will compete for a share of up to £64 million funding that is available in the third year of the scheme. The projects are:

 

  • Advanced Fault Level Management (Western Power Distribution)
  • Innovation2 (SSE)
  • CLASS (Electricity North West)
  • GB Flexibility Market (Northern Powergrid)
  • Accelerating Renewable Connections (Scottish Power)
  • PATHS (SSE)
  • Smarter Network Storage (UK Power Networks)

 

The ISP Proforma for each of these projects can be found on the Second Tier Projects Page.



DateTitle (Click for more document information)
19/04/2012Cover Letter for Low Carbon Networks (LCN) Fund Governance Document v 5
19/04/2012Low Carbon Networks (LCN) Fund Governance Document v5
03/04/2012Blank Low Carbon Networks Fund Initial Screening Submission Proforma
19/03/2012Notice under Charge Restriction Condition 13 of publication of version 5 of the Low Carbon Networks Fund Governance document
23/02/2012Decision on the Low Carbon Networks Fund Two Year Review
01/12/2011Low Carbon Networks (LCN) Fund: Two year review
- (Reference number: 167/11)
05/04/2011Note from Low Carbon Networks Fund Expert Panel meeting with Distribution Network Operators
01/04/2011Low Carbon Networks Fund Governance Document v.4
01/04/2011Covering Letter to Low Carbon Networks (LCN) Fund Governance Document v.4
02/03/2011Notice under Charge Restriction Condition 13 of publication of version 4 of the Low Carbon Networks (LCN) Fund Governance document
02/03/2011Low Carbon Networks (LCN) Fund Lessons Learned Letter
02/03/2011Decision on the impact of the Interruptions Incentive Scheme on Second Tier Low Carbon Networks Fund projects
22/07/2010Low Carbon Networks Fund Governance Document v.3
22/07/2010Covering letter to the Low Carbon Networks Fund Governance Document v.3
18/06/2010Notice under Charge Restriction Condition 13 of publication of version 3 of the Low Carbon Networks (LCN) Fund Governance document
04/06/2010Low Carbon Networks Fund Governance document v.2
04/06/2010Covering letter to the Low Carbon Networks Fund Governance Document v.2
28/04/2010Notice under Charge Restriction Condition 13 of publication of version 2 of the Low Carbon Networks (LCN) Fund Governance document
27/04/2010Low Carbon Networks Fund Workshop: Notes and issues
01/04/2010Low Carbon Network Fund Governance Document v.1
01/04/2010Direction pursuant to charge restriction condition 13 of the distribution licence
01/04/2010Covering letter to the Low Carbon Network Fund Governance Document v.1
24/02/2010Notice under Charge Restriction Condition (CRC) 13 and Consultation on aspects of the Low Carbon Networks Fund