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: 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.

  • Published: 26th Apr 2013
  • Closed: 27th May 2013
  • Consultations and responses
  • 6 Associated documents
This is the cover letter to our proposed modification of Charge Restriction Conditions 13 and 15 of the electricity distribution licence. The proposed changes are included in the notice subsidiary to this letter.

  • Published: 12th Apr 2013
  • Open letters and correspondence
  • 5 Associated documents
This is the cover letter for the publication of the Low Carbon Network Fund Governance Document v.6.

  • Published: 12th Apr 2013
  • Other
  • 2 Associated documents
This document is version 6 of the LCN Fund Governance Document referred to at Charge Restriction Condition 13 of the Electricity Distribution Licence.

  • Published: 8th Mar 2013
  • Decisions
  • 3 Associated documents
This letter sets out the changes to the Low Carbon Networks Fund Governance Document following a review of the process and lessons learnt from the Network Innovation Competition.

  • Published: 1st Feb 2013
  • Reports and plans
  • 4 Associated documents
This letter seeks views on the content and structure of close-down reports to ensure that the learning delivered by second tier LCN Fund projects is effectively disseminated.

  • Published: 7th Dec 2012
  • Other
  • 21 Associated documents
This letter consults on amending the Low Carbon Networks (LCN) Fund governance to allow DNOs to trial measures that shift or reduce electricity demand through LCN Fund projects.

  • Published: 23rd Oct 2012
  • Other
  • 1 Associated documents
This letter highlights the importance of Distribution Network Operator compliance with the LCN Fund governance framework.

  • Published: 2nd Oct 2012
  • Other
  • 1 Associated documents
This is a letter stating our intention to add a criterion to the Initial Screening Process of the Low Carbon Networks Fund.

  • Published: 19th Apr 2012
  • Open letters and correspondence
  • 2 Associated documents
This is the cover letter for the publication of the Low Carbon Network Fund Governance Document v.5.

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