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: 19th Apr 2012
  • Other
  • 1 Associated documents
This document is version 5 of the LCN Fund Governance Document referred to at Charge Restriction Condition 13 of the Electricity Distribution Licence.

  • Published: 19th Mar 2012
  • Decisions
  • 3 Associated documents
This letter sets out the changes to the Low Carbon Networks Fund Governance Document following the conclusions of the Two Year Review.

  • Published: 23rd Feb 2012
  • Decisions
  • 1 Associated documents
This letter sets out our decision on the Low Carbon Networks Fund Two Year Review, based on responses to the consultation, wider stakeholder feedback and lessons learned from the first two years of the process.

  • Published: 1st Dec 2011
  • Closed: 11th Jan 2012
  • Consultations and responses
  • 12 Associated documents
This consultation letter launches a review of the Low Carbon Networks Fund following two years of operation.

  • Published: 1st Apr 2011
  • Other
  • 1 Associated documents
This document is version 4 of the LCN Fund Governance Document referred to at Charge Restriction Condition (CRC) 13 of the Electricity Distribution Licence. It sets out all the regulation, governance and administration of the LCN Fund.

  • Published: 1st Apr 2011
  • Open letters and correspondence
  • 5 Associated documents
Cover letter for the publication of the Low Carbon Network Fund Governance Document v.4

  • Published: 2nd Mar 2011
  • Open letters and correspondence
  • 1 Associated documents
An open letter setting out the conclusions of a high level review of the first year of the Low Carbon Network Fund.

  • Published: 2nd Mar 2011
  • Decisions
  • 3 Associated documents
Cover letter setting out the main changes to the LCN Fund Governance Document following the conclusions of the first year review.

  • Published: 22nd Jul 2010
  • Other
  • 1 Associated documents
Version three of the Low Carbon Networks Fund Governance Document.

  • Published: 22nd Jul 2010
  • Open letters and correspondence
  • 8 Associated documents
Cover letter for the publication of the Low Carbon Network Fund Governance Document v.3.

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