Low Carbon Networks Fund

As part of the electricity distribution price control that ran until 31 March 2015, we established the Low Carbon Networks (LCN) Fund.

The LCN Fund allowed up to £500m to support projects sponsored by the Distribution Network Operators (DNOs) to try out new technology, operating and commercial arrangements. The aim of the projects is to help all DNOs understand how they can provide security of supply at value for money as Britain moves to a low carbon economy.

There are two tiers of funding under the LCN Fund. The First Tier allowed DNOs to recover a proportion of expenditure incurred on small scale projects. Under the Second Tier of the LCN Fund, we ran an annual competition for an allocation of up to £64 million to help fund a small number of flagship projects.

DNOs 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. They also investigate the opportunities that smart meter roll-out provides to network companies. LCN Fund projects should provide valuable learning for the wider energy industry and other parties.

 We will be monitoring the learning that emerges 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.

We have published further information about the second tier Low Carbon Networks Fund competitions.

Publications and updates

  • Published: 20th Jul 2017
  • Decisions
  • 1 Associated documents
This document sets out our assessment of each Project’s Successful Delivery Reward application and the consequential award.

  • Published: 29th Jul 2016
  • Decisions
  • 1 Associated documents
This document sets out our assessment of each Project’s Successful Delivery Reward application and the consequential award.

  • Published: 7th Aug 2015
  • Decisions
  • 1 Associated documents
We are publishing our decision on the 2015 Successful Delivery Reward for projects funded under the Low Carbon Networks Fund.

  • Published: 29th May 2015
  • Open letters and correspondence
  • 1 Associated documents
This letter updates stakeholders on our intent to amend the Network Innovation Competition Governance Documents.

  • Published: 8th May 2015
  • Closed: 22nd May 2015
  • Consultations and responses
  • 32 Associated documents
We are consulting on the Successful Delivery Reward Applications submitted by Low Carbon Networks Fund projects.

  • Published: 3rd Apr 2015
  • Guidance
  • 1 Associated documents
Read version seven of the Low Carbon Networks Fund Governance Document.

  • Published: 2nd Apr 2015
  • Decisions
  • 3 Associated documents
This letter advises stakeholders that version seven of the LCNF Governance Document has come into force. It also describes the main changes we have made since we consulted on the documents.

  • Published: 11th Mar 2015
  • Guidance
  • 1 Associated documents
These guidance notes set out our recommendations for completing the Successful Delivery Reward application, for closed out projects funded under the Low Carbon Networks Fund or Network Innovation Competition.

  • Published: 25th Feb 2015
  • Closed: 25th Mar 2015
  • Consultations and responses
  • 7 Associated documents
This notice explains our proposed changes to the Low Carbon Networks (LCN) Fund Governance Document now that the mechanism is being replaced by the Network Innovation Competition and Allowance for funding new projects.

  • Published: 17th Dec 2014
  • Decisions
  • 1 Associated documents
This letter contains further decisions on implementing the discretionary funding mechanism under the Low Carbon Networks Fund consultation.

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