National Grid wins a third of NIC funding

National Grid has won £22.8 million of the £62.8 million awarded by Ofgem to network innovation projects through its Network Innovation Competition (NIC).

Network operators requested £81.9 million for eleven projects through two annual NIC competitions, one for electricity distribution network operators (DNOs) and the other for gas DNOs, out of a possible £99 million.

The NIC was set up by Ofgem as part of the networks price control to deliver smarter energy networks at lower costs for consumers.

Ofgem has awarded National Grid £12 million to convert an existing substation into a state-of-the-art off-grid research facility.

A commercial demonstration plant that will produce renewable low-carbon methane from household waste has received £6 million, and £4.8 million will be used to minimise the time and cost of connections to the national gas transmission system.

National Grid UK executive director John Pettigrew said: “Today’s decision by Ofgem to award National Grid £22.8 million, is a clear endorsement of all three projects and underlines the importance of what we are trying to achieve.

“The projects are great examples of our continued commitment to innovation in electricity transmission, gas transmission and gas distribution. The funding from Ofgem will help us get these new technologies out of the lab and into the business sooner, so consumers can really feel the benefit.”

This is the first time in the NIC’s three year history that electricity DNOs have competed against each other for funding.

Five projects from seven applications were awarded £44.9 million from the possible £81 million available.

The network licensees and their partners will invest £19.4 million in funding and in kind contributions in the projects.

Three projects from four applications in the gas NIC were awarded the full £18 million available. One project, submitted by Northern Gas Networks, has been awarded partial funding.

A decision on whether the company will choose to progress with the project will be taken in early 2016.

Ofgem senior partner for distribution Maxine Frerk said: “The nine projects receiving funding today show how new sources and uses of gas together with smarter grids can benefit consumers by making the energy system more secure and cost effective.

“As with all the projects we have funded we expect to see learning from these projects being shared across industry and are pleased to see many of the earlier projects now being rolled out across companies and delivering real benefits for consumers.”