Memorandum 80
Supplementary evidence from the National
Grid following the oral evidence session on Wednesday 14 January
2009
I write further to the Innovation Universities
Science and Skills Committee evidence session on Engineering.
During the evidence session you referred to
a question asked by Dr Evan Harris MP on the issue of R&D
expenditure and asked me whether National Grid was meeting the
target of 2.5% of GDP for R&D investment.
Our R&D investment is decided at five year
intervals across our electricity and gas business in discussions
with our regulator Ofgem, currently that is set at 0.5% of turnover
for our UK businesses. We prioritise within this allowance and
for our electricity and gas transmission businesses, we expect
to spend the full allowance in 2008-09, which is £5.2 million
and £2.6 million respectively. Our planned expenditure across
our UK gas distribution business for 2009-10 is £6.4 million.
In order to make the most of the available funding
our spend is highly collaborative and leveraged. Our average leverage
across the group is around 8 to 1. An example of this can be seen
in the contribution we made of £280K to the Electric Power
Research Institute (EPRI) to gain access to £9 million of
research.
Later during the evidence session Dr Brian Iddon
MP asked whether I was aware of the split between our R&D
expenditure-whether in house or in universities.
I can advise that we currently invest 80% of
our R&D spend externally, with approximately £1.4 million
of that going directly into university research funding.
We have for many years worked collaboratively
on new knowledge and product development, and closely watch emerging
trends in network and generation technologies. We are committed
to innovation, and work to promote technological advances and
develop our knowledge to provide a safe, reliable, efficient and
responsible service to our customers.
National Grid is also funding research into
alternative renewable oils to be used in electricity transformers.
There could be potential environmental benefits, and if successful
this could prove more cost effective and efficient than the current
oils used in substation transformers.
National Grid is at the early stages of developing
transmission towers made out of composite materials, which could
be potentially less visual, smaller, and we could string lines
in different ways to reduce transmission losses and increase power
flow. National Grid is also investing in a trial to examine the
use of satellite systems to monitor electricity networks, thereby
reducing the need to check overhead lines by helicopter, reducing
fuel and increasing safety.
National Grid also supports various research
groups via the Confederation of British Industry and research
councils. National Grid Executive Director, Nick Winser currently
co-chairs the Energy Research Panel who have previously produced
information on skills within the energy sector.
February 2009
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