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Ofgem’s network innovation competition (NIC) for electricity networks has failed to attract high levels of interest, leaving it undersubscribed by as much as £13 million for 2015.
The competition fund has had “good levels of interest”, Ofgem insisted.
The regulator said it had received seven submissions for the 2015 electricity network innovation competition, its replacement for the low carbon networks fund, seeking a total of £68.35 million. However, this is out of a total pot of £81 million available.
By contrast, the gas NIC was oversubscribed by £700,000 after gas networks applied for £18.7 million against a possible £18 million available.
Speaking to Utility Week, energy consultant John Scott said that, given the “successful outcomes” from the low carbon networks fund projects, “it seems most unlikely that everything has been done” to innovate the power grids.
“There’s still masses of potential for real value to be gained from investment in smart grid demonstration projects,” he said. “Some topic areas have unexplored potential, such as greater use of power electronics, automation and autonomous system, while other areas will benefit from a deeper dive to build further knowledge and accelerate wide-area roll-outs, such as in energy storage or network interactions with homes, buildings and consumers.”
“Now would be a great time to see network companies redouble their efforts to accelerate the delivery of fresh thinking for Britain’s energy system,” he added. “The arrival of the new Energy Systems Catapult, the findings from DS2030, and smart metering are just some of the catalysts that should be harnessed to bring real customer benefits.”
A spokesperson for Ofgem told Utility Week: “Last year only two [gas network] projects applied so this is a significant improvement in levels of interest.”
“For electricity, seven projects have applied seeking £68 million against a potential total pot of £81 million,” said Ofgem.
“The seven projects are diverse and represent a range of different innovation ideas,” the regulator added. “This is the first year that DNOs have been able to apply for the electricity NIC and we received four submissions from DNOs.”
Ofgem will announce the projects approved for funding next month.
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