Ofgem announces 2014 Innovation Competitions’ shortlist
14 May 2014 01:49 PM
Ofgem has shortlisted 11
projects which have passed the Initial Screening Process (ISP) for this
year’s Innovation Competitions
Innovation funding is available
to network companies through the Electricity Network Innovation Competition
(Electricity NIC), the Gas NIC and the Low Carbon Networks (LCN) Fund. These
competitions provide essential backing to innovative projects which aim to make
the energy networks smarter, accelerate the development of a low carbon energy
sector as well as deliver environmental benefits and lower future costs to
consumers.
The projects that have passed
the ISP are now eligible to progress to the full submission stage. Network
companies must submit their fully developed proposals to Ofgem by 25 July 2014.
An expert panel will evaluate the full submission proposals against detailed
criteria and make a recommendation to Ofgem on which projects should receive
funding. Ofgem will decide which projects to fund by the end of November
2014.
Notes to
editors
1. The
Competitions
As part of the RIIO-T1 and
RIIO-GD1 price controls, Ofgem introduced two annual Network Innovation
Competitions (NICs) - one for electricity transmission companies (Electricity
NIC) and one for gas network companies (Gas NIC).
This year, Ofgem is also running
the final year of the LCN Fund which is part of the current electricity
distribution price control arrangements. From next year the LCN Fund will not
exist but electricity distribution companies will be able to apply to the
Electricity NIC. For the final year of the LCN Fund, as in other years, up to
£64m may be awarded.
The Electricity NIC will run
annually from April 2013 until March 2021. This year the available funding for
the Electricity NIC is £27m. For 2015-16 and 2016-17 £90m will be
available each year to fund projects proposed by electricity transmission and
distribution licensees. We will set the NIC funding for 2017-18 onwards based
on a review of value for money from completed LCN Fund projects. This revised
amount, which could be profiled, will be at least £27m (the amount set in
RIIO-T1).
The Gas NIC will also run
annually from April 2013 until March 2021 and a maximum of £18m will be
available each year for the purposes of the competition.
2. The
projects
This table lists the projects
which have passed the ISP:
3. The Initial Screening
Process
Proposed projects must pass the
ISP to be eligible to enter the innovation competitions. In order to pass the
ISP, a project must meet the eligibility requirements. We assess whether the
submissions demonstrate that they meet these requirements.
These eligibility requirements
state that a NIC project must have the potential to have a direct impact on a
network company’s network or the operations of the GB system operator and
involve the development or demonstration of at least one of four specific
requirements. In addition to meeting one or more of the requirements, in order
to pass ISP, a network company must also demonstrate that the project meets all
of the ISP criteria. The specific requirements and the ISP criteria are
detailed in the Governance documents for each of the competitions (LCN Fund, Electricity NIC, andGas NIC).
4. About the expert
panel
The Expert Panels will review
submissions made to the innovation competitions and make a recommendation on
the projects which should receive funding. The Expert Panel members bring
knowledge and expertise covering energy network industries, consumer interests,
environmental policy, technical and engineering issues, and economics and
finance. The panels are as follows:
| Electricity NIC Expert
Panel |
Gas NIC Expert
Panel |
LCN Fund Expert
Panel |
| Dr Robin Bidwell
(Chair) |
Miriam Greenwood
(Chair) |
Dr Robin Bidwell
(Chair) |
| Sharon Darcy |
Sharon Darcy |
Sharon Darcy |
| Prof. David
Newbery |
Prof. David
Newbery |
Prof. David
Newbery |
| Alan Bryce |
Sean Sutcliffe |
Sean Sutcliffe |
| Prof. Nick
Jenkins |
Ron Chapman |
Prof. Nick
Jenkins |
5. About Ofgem
Ofgem is the Office of the Gas
and Electricity Markets, which supports the Gas and Electricity Markets
Authority, the regulator of the gas and electricity industries in Great
Britain. The Authority's functions are set out mainly in the Gas Act 1986,
the Electricity Act 1989, the Competition Act 1998 and the Utilities Act 2000.
In this note, the functions of the Authority under all the relevant Acts are,
for simplicity, described as the functions of Ofgem.
6. For further press information
contact:
Lisa
O’Brien: 020 7901
7426
Dafydd Wyn: 020 3263
9943
Felicity Beverley: 020 7901
3858
Out of hours media contact
number: 07766 511470