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AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF<br />

Low Carbon London<br />

Project Title<br />

Low Carbon London<br />

Tier Tier 2<br />

DNO<br />

UK Power Networks<br />

Status<br />

Complete<br />

LCNF project funding £21.7m<br />

Project objectives Low Carbon London developed a new approach to distribution network management to meet growing demand from emerging<br />

low carbon technologies such as electric vehicles, heat pumps and distributed generation. It focused on carbon reduction and<br />

the need to reduce dependency on conventional reinforcement.<br />

Commercial solution: included multipartite contracts between EDF Energy Networks, National Grid, aggregators, suppliers,<br />

and industrial & commercial customers; energy efficiency consultation; contracts with distributed generation for network support;<br />

and Time of Use tariffs to support residential and SME peak demand management.<br />

Technical solution: included an active network management system with half hourly inputs from at least 5,000 smart meters,<br />

marshalled through a head end solution; and an operational data store (with complex event processing integrated with an<br />

existing network management system).<br />

Assessment<br />

Criteria<br />

Accelerates the<br />

development of a low carbon energy<br />

sector<br />

Score<br />

(1-5)<br />

5<br />

Overview of assessment, sources of evidence and comments<br />

Assessment:<br />

The project clearly facilitates the connection of low carbon generation or demand.<br />

The carbon benefits are quantified in terms of enabling the connection of LCTs.<br />

Evidence:<br />

LCL successfully demonstrated the use of a number of technical and commercial mechanisms (See<br />

objectives above) that will defer reinforcement costs for the connection of LCTs.<br />

Carbon benefits were assessed directly as part of the LCL project at a ‘per intervention’ level. The revised<br />

NPV estimate of carbon benefits is £8.6bn, a reduction from the original estimate of £25.8bn, reflecting a<br />

reduced contribution anticipated from Heat Pumps, a fall in DECC’s estimate of carbon abatement costs,<br />

and most significantly a fall in the underlying forecast of grid carbon intensity.<br />

References:<br />

• LCL project closedown report; March 2015.<br />

PÖYRY MANAGEMENT CONSULTING<br />

October 2016<br />

713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx<br />

218

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