The regulator chose the eight successful bidders from 10 projects at the final submission stage to share the total funding offer made through its three innovation competitions designed to help the UK’s energy networks become “smarter and more cost-efficient” in the transition to a low carbon system.
The three competitions include the Low Carbon Networks (LCN) Fund, the Gas Network Innovation Competition (NIC) and Electricity NIC.
“The eight projects receiving funding today have successfully demonstrated that they have real potential to deliver environmental and cost saving benefits,” said Ofgem senior partner for distribution Maxine Frerk.
“Energy networks are facing significant challenges in moving to a low carbon future and ensuring costs are kept low for consumers. Ofgem’s ground-breaking innovation competitions encourage the companies to prepare for the future,” Frerk added.
The LCN fund will award £11.5 million to Western Power Distribution’s Network Equilibrium project, £4.4 million to Electricity North West’s Fault Level Active Response project, while UK Power Networks will receive £3.3 million for its Kent Area System Management project and SSE Power Distribution will receive £2.7 million.
From the Electricity NIC fund £9 million will be awarded to TC Ormonde’s Offshore Cable Repair project, with £6.9 million to be given to National Grid Electricity Transmission for its Enhanced Frequency Control Capability project and £2.8 million assigned to Scottish Hydro Electric Transmission for its Modular Approach to Substation Construction project.
The Gas NIC fund awarded £5.7 million to National Grid Gas Transmission for its In Line Robotic Inspection of High Pressure Installations project.
Ofgem said the two shortlisted projects which did not receive funding had “failed to demonstrate good value for consumers” and therefore did not receive funding.