EVALUATION

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AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF Some respondents mentioned the trials that are building on the work of previous trials. For example; National Grid’s Transmission & Distribution Interface 2016 project screening bid which builds on UK Power Networks KASM LCNF Tier 2 project, WPD approaching UKPN for a specification for a phase-shifting transformer following their successful deployment of that device as part of their Flexible Plug & Play Networks project, South Wales network logging, Orkney DSM trials. Another respondent knew that the lessons learnt from their NIA funded project have been adopted by two other DNOs. They believe when a DNO is adopting a new technology, due to their risk adverse culture it is important that they feel supported, and see that other DNOs have confidence in the technology. A further respondent has been approached by other DNOs for equipment intending to use it for the same function as other DNOs have; which they have deduced is due to knowledge dissemination. Finally, one respondent say they have delivered many projects through IFI, NIA and NIC funding that have been fully adopted by the sponsor GDN, this has been accompanied by the sharing of learning. They carry on it say it is a slow process, often requiring the supplier to push it, as opposed to the network. C.1.5 LCNF Meeting its Objective Regarding Effective Collaboration Between DNOs and Project Partners (Q1.5) Questions: Do you believe that the LCNF has met its objective of effective collaboration between the DNOs and project partners? Where appropriate please provide evidence of the success, or otherwise, of collaboration C.1.5.1 Summary of Responses The general consensus as agreed on by nine respondents was that the LCNF has met this objective, with many respondents speaking positively regarding the collaboration that has occurred. One respondent stated that there has been a marked increase in partnering since IFI. C.1.5.2 Project Partners Involved Two respondents mentioned the diverse range of project partners there has been – academics, consultants, SMEs, technology suppliers – with the latter adding that this has expanded project scopes beyond technical matters. Small Medium Enterprises Three of the respondents, mentioned the point that SMEs are less likely to be involved in the LCNF than larger companies. Two of these respondents made the point that DNOs are more likely to work with universities and major suppliers than companies such as SMEs and start-ups. The latter said this behaviour was justified due to DNOs being under such pressure DNOs are under to deliver by both Ofgem and their shareholders; and with them having responsibility for Critical National Infrastructure they need to have the utmost confidence in their partners. The former believes the suppliers could also have pushed harder to get involved, but has heard feedback that the network operators are not keen for their networks to be used to PÖYRY MANAGEMENT CONSULTING October 2016 713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx 170
AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF test new developments – especially those that are out with the comfort zone of the industry. Another of the respondents felt this was due to the large risk a company has to take on being part of a project and this risk being not proportional to the company size, meaning it favours large companies. They feel if this risk was eased, many more SMEs could get involved and it would benefit the UK market. C.1.5.3 Other Points One respondent remarked that some DNOs now actively invite proposals through their websites or issue calls for expression for interest. Whereas another respondent believes DNOs are generally the initiator when it comes to project proposals. The same respondent thinks stakeholder collaboration is essential for a successful roll-out of innovative technology. One respondent believes those projects that involved project partners, National Grid and other DNOs at an early stage definitely benefited from it. Finally, one respondent noted that there is evidence of project partner – DNO collaboration but less so of DNO – DNO collaboration though they do learn from other trials. C.1.5.4 Barriers Another respondent is aware of some larger companies being hesitant to participate in later years due to the degree of IP sharing required meaning they could not retain IP where they expected. One respondent made the point that potential project partners do not want to collaborate with DNOs on developing a project idea as they then need to tender for it; they think DNOs prefer to develop the idea themselves then tender for equipment, which reduces collaboration. Another respondent believed that DNOs need to be penalised if they do not have good time management, in eight projects they were involved in only two were delivered on time, and for the ones carrying on longer than intended the project partner must ensure they have staff available for the duration of the project for smooth delivery. One respondent mentions that there may be problems with commercial projects as a result of confidentiality issues. The view of one respondent was that the follow-on collaboration projects they had planned were rejected due to direct interference by the EIC. Finally, one respondent believes that given the uncertain return on projects, the collaboration is more limited than would be expected considering the money on offer. C.1.6 Barriers that Affected the Outcome of the Project (Q1.6) Questions: Are you aware of any barriers that may have affected the outcome of the projects? PÖYRY MANAGEMENT CONSULTING October 2016 713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx 171
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EVALUATION

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