Four innovative projects that will speed up the crucial development of smart grids to meet low carbon energy use, will share £62 million of funding from the £500 million Low Carbon Networks Fund, energy regulator Ofgem has announced.
Ofgem and an independent panel of energy experts said they were impressed by the overall quality of the 11 projects submitted by the network companies for funding. Both judged that the winning projects particularly demonstrated the potential to kick start the introduction of “smart grids” needed to help meet the Government’s 2020 targets for reducing carbon emissions.
The companies sponsoring the projects also demonstrated they can embrace new creative ways of working with suppliers, generators, universities, local councils and others.
The lessons learnt from these ground-breaking initiatives will be shared with all network companies and interested parties, potentially benefiting millions of energy consumers across Britain.
The funding awarded today will inform the crucial investment needed in energy infrastructure to connect renewable generation and accommodate new technologies such as electric vehicles. It will also help the companies understand how to run their networks in a more intelligent way to meet changing needs quickly and efficiently.
Stuart Cook, Ofgem’s Senior Partner for Smarter Grids and Governance said: “The first year of Ofgem’s Low Carbon Networks Fund saw an enthusiastic response from all of Britain’s electricity networks. Both Ofgem and the independent panel were impressed by the high standard of entries, and the level of ambition in the industry, and we wish to commend all the projects.
“Ofgem has identified that network companies will have to spend £32 billion on their pipes and wires over the next ten years to decarbonise the energy sector. The Low Carbon Networks Fund initiatives prove that the companies are grasping the nettle and seeking innovative ways to meet the challenges that lie ahead.”
Ofgem’s new RIIO model (Revenue=Incentives+Innovation+Outputs) for setting price controls will expand funding for innovation across all network sectors, not only electricity distribution.
The projects awarded funding are:
CE Electric: Customer-led network revolution (£26.8 million)
A project in the north east exploring how a combination of smart technologies and changes in customer behaviour can reduce the costs associated with low carbon technologies. The project uses British Gas’ early roll out of smart meters and low carbon products such as solar panels and heat pumps.
It also sees CE Electric working with a variety of partners, including Durham University.
UK Power Networks: Low carbon London – a learning journey (£24.3 million)
A “smart city” initiative for London that will explore how to best use new technologies and active network management. The project will also seek to understand when, how and why consumers use energy and how this can be influenced. This will work on the back of several existing low carbon projects, such as the Plugged in Places Scheme that encourages use of electric cars.
The project will be carried out in partnership with a number of organisations throughout London, including EDF Energy, Imperial College, Logica and Transport for London.
Central Networks: Low carbon hub (£2.8 million)
This project in East Lincolnshire will investigate ways of increasing the amount of electricity generation - mainly wind - that can connect directly to the local electricity network. The project will monitor wind speed, generator output and network conditions and the knowledge will benefit small, renewable generators who want to connect directly to the distribution network.
This will help deliver potential savings to customers by allowing more generation to connect at lower cost.
Western Power Distribution: Low voltage Network Templates for a low-carbon future (£7.8 million)
This project in South Wales will examine the effect that low carbon technologies have on the network. The trial will help other companies become more efficient by allowing them to anticipate network behaviour and know which solutions have already been proven to work well. It will work with existing Welsh Assembly Government and npower initiatives.
Although not among the winning four, Ofgem and the expert panel would like to note that several other submitted projects were judged to be of a high standard. The panel would be keen to see ideas in these projects reflected in future submissions.
SSE submitted a Northern Isles New Energy Solutions project (NINES) which primarily focussed on the challenges faced by Shetland. Ofgem and the expert panel concluded that the learning from the project would not be immediately applicable to other networks.
However, SSE is required in any case to come forward with a proposal for meeting the energy needs of Shetland. Funding arrangements are already in place for this purpose. It is possible that many of the ideas in NINES may inform that proposal.
Reacting to the confirmation of the London bid, Basil Scarsella, chief executive of UK Power Networks, said: “The success of this bid is tremendous news for sustainability in London. It means we can start developing an electricity network that not only supports London’s existing and planned low carbon strategies, but can also accommodate the many different demands on the network we will face in 2020.
“We are delighted Ofgem recognised the strength of our bid and the tremendous potential London offers as the test bed for a low carbon project. Now our focus is on delivering a project that not only supports London’s low carbon ambitions, but also generates valuable learning for other electricity networks in Great Britain.”
Tara McGeehan, Logica’s UK director of utilities said, “I believe that Low Carbon London will provide unparalleled insight into how the future energy systems will need to be designed, operated and regulated so that we all continue to benefit from secure, affordable, low carbon energy. Ofgem’s funding of this programme will help to bring a low carbon future closer to reality.”
Post a comment