LCNF benefits could reach £7.8bn

The discounted net benefits of innovation projects carried out with support from the Low Carbon Network Fund could be as much as £7.8 billion.

LCNF benefits could reach £7.8bn

Ofgem chief executive revealed this potential saving for customers in his keynote address at the Low Carbon Networks and Innovation (LCNI) conference in Manchester. The figure is based on analysis carried out by consultancy Poyry as part of Ofgem’s innovation funding review.

Poyry’s work indentified a potential range of savings for customers on the back of the LCNF which vary depending on the extent to which innovations are deployed.

At the lower end of the scale, Poyry expects that if projects are not deployed beyond network trials, discounted net benefits will be between £800m and £1.2bn.

If projects are rolled out across Great Britain, higher benefits to consumers of between £4.5bn and £7.8bn could be achieved.

Nolan said that the figures show that the answer to Ofgem’s key question for the innovation funding review – “has the LCNF been value for money for consumers?” – is “yes”.

More detail on the findings of Ofgem’s innovation funding review are expected in the coming weeks and a final decision document on the future of innovation funding will be published in spring 2017.


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