ETI: Allow third parties to compete for NIC funding

The Energy Technologies Institute (ETI) has called for the funding competition for network innovation projects to be opened up to third parties.

ETI chief executive Dr David Clarke said opening up the Network Innovation Competition (NIC) could provide alternative routes to market for outputs, and help publicise the findings of projects, as long as distribution network operators (DNO) “were engaged in it”.

Currently DNOs compete for a share of £18 million annually, but Clarke said investment of “hundreds of millions” is required to not only undertake the projects but properly disseminate the findings.

Clarke said: “I just don’t think the DNOs, in a regulated environment, have the capacity to handle that scale of investment. That is the real challenge.

“It really is the nuts and bolts detail – the real lessons learned. We have trouble doing that ourselves from our budgets, which are quite big.”

While only networks operators are allowed to bid for funding, third parties have already led on projects completed under the previous funding scheme the Low Carbon Networks Fund, such as EA Technology on the My Electric Avenue project with Scottish and Southern Energy Power Distribution.

Trade body the Energy Networks Association (ENA) said current arrangements have led to “highly successful” projects whose outcomes have become “business as usual”.

An ENA spokesman said: “Key to the innovation stimulus and its success is the partnership with industry, SMEs, technology developers and academia”.

Regulator Ofgem is already consulting with industry on the possibility of opening up the NIC as part of a wider consultation on the future of innovation funding, as it says current arrangements “may limit the number and range of submissions we receive each year”. Utility Week reported last October that the NIC could be undersubscribed by as much as £13m for 2015.

The consultation closes on February 5.