Innovation Funding Incentive

The Innovation Funding Incentive (IFI) scheme is a mechanism introduced by OFGEM to encourage distribution network operators (DNO) to invest in appropriate research and development (R&D) activities that focus on the technical aspects of network design, operation and maintenance.

The principal objective is to deliver benefits to consumers, taking a longer term view, by enhancing efficiency in network operating costs and capital expenditure.

2009/10 has been a very successful year for IFI within National Grid. In 2009/10 National Grid spent £3.4m on Gas Transmission R&D and £6.1m on Electricity R&D. This is virtually 100% of the allowance available. National Grid strongly believes that, where possible, R&D should be done collaboratively with industry partners. This allows us to maximise our funding and share the benefits with our partners. Taking into account the total contributions to projects funded in 2009/10 from both National Grid and its partners, the full value of the 2009/10 R&D portfolio is in excess of £50m. 

The IFI has again been utilised for our existing assets and there continues to be a number of vital areas which we are exploring to further enhance safety, capability and reliability whilst ensuring efficient use of expenditure.

The potential role of Carbon Capture and Storage (CCS) in the transition to a low carbon economy is another important focus.

For electricity, our challenges include the connection of new low carbon generation, overcoming capacity constraints on the network and enabling Smart technology to optimise network and customer choices.

For more detailed information on our IFI activities please view our annual reports (see below).

Further information: OFGEM innovation information; more on Carbon Capture and Storage.

Innovation Funding Incentive

18 July 2013
Annual IFI Report 2012/13 - Introduction
18 July 2013
Annual IFI Report 2012/13 Section 2 - Electricity Transmission
18 July 2013
Annual IFI Report 2012/13 Section 3 - Gas Transmission
27 July 2012
Annual IFI Report 2011/12 Section 3 - Gas Transmission
27 July 2012
Annual IFI Report 2011/12 Section 2 - Electricity Transmission
27 July 2012
Annual IFI Report 2011/12 - Introduction
10 August 2011
Annual IFI Report 2010/11 Section 1 - Introduction
10 August 2011
Annual IFI Report 2010/11 Section 2 - Electricity Tranmission
10 August 2011
Annual IFI Report 2010/11 Section 3 - Gas Transmission
10 August 2011
Annual IFI Report 2010/11 (Full)
28 September 2010
Annual IFI Report 2009/10 Section 3 - Gas Transmission
28 September 2010
Annual IFI Report 2009/10 Section 2 - Electricity Transmission
28 September 2010
Annual IFI Report 2009/10 Section 1 - Introduction
12 August 2009
Annual IFI Report 2008/09 Section 3 - Gas Transmission
12 August 2009
Annual IFI Report 2008/09 Section 2 - Electricity Tranmission
12 August 2009
Annual IFI Report 2008/09 Section 1 - Introduction
12 August 2009
Annual IFI Report 2007/08 (Full)
 

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