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: 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.

  • Published: 21st Aug 2014
  • Closed: 3rd Oct 2014
  • Consultations and responses
  • 3 Associated documents
A further consultation on implementing the Discretionary Funding Mechanism under the Low Carbon Networks Fund

  • Published: 21st Aug 2014
  • Decisions
  • 1 Associated documents
Our decision on the implementing the Discretionary Funding Mechanism under the Low Carbon Networks Fund consultation.

  • Published: 9th Apr 2014
  • Open letters and correspondence
  • 1 Associated documents
This letter explains our expectation that learning from innovative network projects be disseminated to all licensees and other interested parties.

  • Published: 31st Jan 2014
  • Closed: 28th Mar 2014
  • Consultations and responses
  • 11 Associated documents
The Low Carbon Networks (LCN) Fund includes a Discretionary Funding Mechanism, which allows for up to £100m to be awarded to Distribution Network Operators (DNOs).

  • Published: 23rd Aug 2013
  • Decisions
  • 1 Associated documents
Decision to modify Charge Restriction Conditions 13 and 15 of the electricity distribution licence to ensure customers benefit from royalties generated by Low Carbon Networks Fund projects.

  • Published: 10th Jul 2013
  • Other
  • 1 Associated documents
We are pleased to announce the appointment of the Expert Panel members for this year’s innovation competitions

  • Published: 18th Jun 2013
  • Other
  • 1 Associated documents
We are seeking views on the content and structure of close down reports that will detail the learning delivered by Second Tier Low Carbon Networks Fund projects.

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