EVALUATION

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AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF The underlying R&D spend, excluding LCNF, has remained relatively stable suggesting that the stimulus that LCNF has provided has been key to the changes. Thus whilst we do find the DNOs have made significant progress in achieving a culture change we do not think innovation is yet a core part of their business. PÖYRY MANAGEMENT CONSULTING October 2016 713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx 30
AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF 4. QUALITATIVE ASSESSMENT OF THE LCNF This section considers the LCNF projects individually and in terms of their innovation initiatives with respect to relevance and learning. It also looks at the aims of the LCNF and the qualitative responses received from project partners and industry representatives in this respect. 4.1 Individual project assessments – Tier 2 projects The Tier 2 projects are a small number of large ‘flagship’ projects which are funded through competition for an annual allocation of up to £64m. 4.1.1 Numbers of projects The number of successful and unsuccessful projects that applied for funding each year is illustrated in Figure 9. A total of 23 Tier 2 projects have been funded over the five-year period of the LCNF. Twelve projects were unsuccessful with their initial applications and were not funded; one was funded on the second application 36 and one was funded via alternative means 37 . The large number of non-funded projects in the first year of the LCNF was, to a large extent, due to a duplication of ideas. In later years, projects were not funded because they did not demonstrate sufficient benefits to electricity customers. Figure 9 – Tier 2 projects funding by year 8 Tier 2 projects funding per year 7 6 5 4 3 2 1 0 Year 1 Year 2 Year 3 Year 4 Year 5 Funded T2 Non funded T2 projects 36 37 SSE’s New Thames Valley Vision. SSE’s Northern Isles New Energy Solutions (NINES) Project on Shetland was funded via changes to SHEPD’s licence to enable the NINES proposal to be submitted as a part of the Integrated Plan and an associated adjustment to Allowed Revenues. PÖYRY MANAGEMENT CONSULTING October 2016 713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx 31
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EVALUATION

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