When Ofgem set price controls for the regional networks for 2005-2010 it introduced two schemes to encourage research, development and deployment of innovation by network companies. These included incentives to investigate and develop innovative engineering for more wind farms without the need for additional pylons and infrastructure.
David Gray, managing director for networks at Ofgem, said: “Under the current arrangements these incentives would cease in 2010, but we recognise that some larger, more strategic research and development initiatives have timescales of five years or more. So we have decided now to extend the scheme into the next price control period (2010-2015) so that there is no loss of momentum in this important work. Together both schemes will give companies the opportunity to access funding of £180 million ($360 million) for investment and research.” Gray added that the government has made it clear that it wants to see more low carbon generation connecting to local networks.
