Isra-Mart srl:Ofgem opens up £500m low carbon war-chest

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Isra-Mart srl news:

Ofgem has today announced the first award of funding from its high profile £500m Low Carbon Networks Fund, selecting four smart grid demonstration projects which will receive a share of £62m in fresh funding.

The largest award went to a consortium-led by energy distribution firm CE Electric, which will now receive £26.8m to help fund a project to see the roll out of British Gas smart meters can be harnessed to drive energy saving behaviour and reduce the cost of low carbon technologies.

Similarly, a project involving energy distribution firm UK Power Networks as well as EDF Energy, Imperial College, Logica and Transport for London will receive £24.3m to trial smart grid and electric car charging technologies across the capital.

Finally, a project in East Lincolnshire exploring how wind energy can be connected directly to local electricity networks has been awarded £2.8m, while a similar initiative in South Wales to assess how low carbon technologies can connect to the grid will receive £7.8m.

The successful projects, which were selected from a short list of 11 proposals, will provide a template for future smart grid technology roll-outs with each of the companies involved pledging to share their findings with their peers and customers.

Stuart Cook, Ofgem's senior partner for smarter grids and governance, said the new fund had prompted an "enthusiastic response" from all Britain's electricity networks.

"Ofgem has identified that network companies will have to spend £32bn on their pipes and wires over the next ten years to decarbonise the energy sector," he said. "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."

The fund will provide £500m of funding over the next five years with £64m to be awarded each year through a competitive bidding process. A further £80m is available over the five years for smaller scale projects, while £100m is available over the five years as a discretionary award for projects that promise to deliver significant gains in the development of low carbon networks.