EVALUATION

AN INDEPENDENT EVALUATION OF THE LCNF
Thus, despite the challenges of managing innovation projects with their inherent
uncertainty, the large Tier 2 projects have generally been well managed against
their Successful Delivery Reward Criteria (SDRC).
8. SoLa Bristol, which considered a combination of energy storage in customer's
premises, together with variable tariffs and integrated network control, was allocated
a low score in our evaluation for ‘project relevance and timing’.
The project concluded that small-scale storage does not offer DNOs an immediate
or medium-term opportunity to modify the distribution system to integrate PV and
batteries. This should be reviewed once the storage market, where high costs have
kept the market small, has matured. However it was noted that whilst the benefits
are small for DNOs (when compared to implementation costs) there may be a
business case for implementation by housebuilders, energy suppliers or Building
Management companies.
4.2 Individual project assessment - Tier 1 projects
The Tier 1 projects are the smaller projects for which the DNOs were allowed to recover a
proportion of the project cost. The Tier 1 projects are required to trial a new piece of
equipment, arrangement or practice and to also meet the criteria in the LCNF governance
document.
4.2.1 Numbers of projects
A total of 42 Tier 1 projects have been funded over the five-year period of the LCNF. One
project was stopped when it was clear there was not a positive cost-benefit case. Other
projects are ongoing.
4.2.2 Individual project evaluation
As part of this evaluation all of the completed Tier 1 projects have been individually
assessed against a set of criteria – drawn from the initial LCNF assessment criteria with
the exception of the criteria to avoid duplication which is discussed below. The results of
the assessments are provided in Table 8. More detail, in the form of the supporting
evaluations, together with further information on the evaluation method used and scoring
criteria, is provided in Annex E of this report.
There are also a number of ongoing projects that have not been evaluated – these are
identified in Table 6.
PÖYRY MANAGEMENT CONSULTING
October 2016
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