EVALUATION

AN INDEPENDENT EVALUATION 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
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