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: 4th Jun 2010
  • Other
  • 1 Associated documents
Version two of the Low Carbon Networks Fund Governance document detailing arrangements for the First and Second Tier funding mechanisms.

  • Published: 4th Jun 2010
  • Open letters and correspondence
  • 5 Associated documents
This is the covering letter for the publication of version 2 of the (LCN) Low Carbon Networks Fund Governance Document.

  • Published: 28th Apr 2010
  • Decisions
  • 8 Associated documents
This letter gives notice of the publication of version 2 of the LCN Fund Governance Document.

  • Published: 27th Apr 2010
  • Other
  • 4 Associated documents
Notes and issues from the workshop to discuss the Low Carbon Network Fund. Held on Tuesday 30 March 2010, at Ofgem's offices, 9 Millbank, London.

  • Published: 1st Apr 2010
  • Other
  • 1 Associated documents
Version one of the Low Carbon Network Fund governance document detailing arrangements for First Tier projects.

  • Published: 1st Apr 2010
  • Decisions
  • 1 Associated documents
Direction from the Authority pursuant to charge restriction condition 13 of the distribution licence to bring into effect the Low Carbon Network.

  • Published: 1st Apr 2010
  • Open letters and correspondence
  • 9 Associated documents
This is a covering letter for the publication of version 1 of the Low Carbon Network (LCN) Fund Governance Document.

  • Published: 24th Feb 2010
  • Consultations and responses
  • 1 Associated documents
This letter gives notification of the publication of the Low Carbon Networks Fund Governance Document.

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