An Coimisiún um Rialáil Fóntas Commission for Regulation of Utilities Gas Innovation Reporting Framework Information Paper Information Paper Reference: CRU/18/180 Date Published: 30/08/2018 Closing Date: N/A 0
Executive Summary In August 2017, the Commission for Regulation of Utilities (CRU) published a number of decisions 1 on the allowed revenues that Gas Networks Ireland s (GNI) Transmission and Distribution businesses can recover over the current price control period (PC4). PC4 runs from October 2017 to September 2022. The allowed revenues included a combined (Transmission & Distribution) innovation fund of up to 20.0m. This paper sets out an Innovation Reporting Framework (the Framework ), which details the types of reports and the type of information that GNI is required to provide. In addition, this paper sets out the criteria against which the CRU will assess the use of innovation funding and how it will inform the public of this assessment. In PC3, an innovation fund was created. This innovation fund allowed GNI to explore new and innovative types of technologies, which otherwise may not have been commercially viable. Innovative technologies have the potential to provide benefits to the gas network by, for example, aiding its ongoing utilisation, which has the potential to keep downward pressure on network tariffs for gas customers. The innovation fund is administered by GNI in consultation with the Gas Innovation Advisory Group (GIAG) 2. Of the aforementioned 20.0m, the CRU has initially awarded GNI 17.5m, with a further 2.5m potentially available to GNI. The CRU stated in its PC4 decision papers that it will make a final decision on the allocation of the additional 2.5m at a later date in PC4. The decision to release/or not release the additional 2.5m, will be informed by the outcomes and outputs of the innovation fund throughout PC4. In order to ensure that the CRU is in possession of the information required to make such a decision, it has developed an Innovation Reporting Framework (the Framework ). GNI currently provides the CRU with biannual innovation reports. Although the reports met the requirements as outlined in PC3, the CRU in its PC4 decision, highlighted the need for these reports to centre on the outcomes and outputs of the innovation fund. GNI is no longer required to submit a mid-year report to the CRU. However, the Framework requires GNI to publish an end-ofyear 3 annual report by 20 December of each year, incorporating CRU commentary. This provides an additional reputational incentive for GNI to use innovation funding effectively, and will provide customers and stakeholders with a much clearer picture as to whether, and how, past innovation projects are incorporated into business-as-usual operations. In addition to the higher-level annual report, the Framework requires that GNI submit an Initial 1 Decisions on October 2017 to September 2022 Transmission Revenue (CER/17/260) and Distribution Revenue (CER/17/259) for Gas Networks Ireland. 2 The GIAG is comprised of representatives from academia, industry and policy. A list of these members can be found on GNI s website here. 3 On a gas year basis, not a calendar year. 1
Innovation Project Form and a Completed Innovation Project Form. A template for these forms has been developed by the CRU and is contained within this document. These forms will be completed for each project by GNI, the former upon awarding of funding to a project, and the latter following project completion. This will assist the CRU when it assesses the outcomes and outputs upon completion of a project, against the aims and objectives of a project at its outset. As innovative projects often span a number of years the CRU requests that GNI provides a Completed Innovation Project Form for each completed project that received PC3 innovation funding, within 3 months of the publication of this document. Completed Innovation Project Forms are to be submitted on an ongoing basis as projects funded through the PC3 innovation allowance reach completion over the course of PC4. The CRU has detailed a number of criteria against which the CRU will assess innovation funding. These criteria include the transition to a decarbonised economy, increased throughput on the gas system, and measurable value to all gas customers. By highlighting these criteria the CRU has provided GNI and the GIAG with greater insight into what may inform the CRU s future regulatory decisions in the area of innovation. The CRU s priority when developing the Framework has been to ensure, in so far as possible, that the gas customers investment in innovation provides benefits to gas customers. By developing this Framework, the CRU will have at its disposal, the information required to make a well informed decision as to whether to release the additional 2.5m. The information will also be used to inform future regulatory decisions with regard to the treatment of innovation funding. The CRU acknowledges that innovation projects by their very nature contain inherent commercial risks. These projects will not always result in successful implementation of new technologies or processes, and in fact the learning of a project may be that it is not a viable option. However, where innovation projects do demonstrate beneficial options for integration into business as usual activities, it is important to ensure that these are incorporated by GNI. 2
Public/ Customer Impact Statement The Commission for Regulation of Utilities (CRU) is the independent economic regulator for the natural gas, electricity and water sectors in Ireland. Our mission is to regulate water, energy and energy safety in the public interest. As economic regulator of Gas Networks Ireland (GNI), the CRU s role is to protect gas customers by ensuring that GNI spends customers money appropriately and efficiently to deliver necessary services. In the CRU s decision on the allowed revenues that GNI can recover from customers for the period October 2017 to September 2022 (known as PC4), the CRU allowed a combined (Transmission & Distribution) innovation fund of up to 20.0m. The CRU made an initial 17.5m available to GNI with a further 2.5m potentially available. Through the innovation fund the CRU provides support to innovative projects that have the potential to provide benefits to the gas network by, for example, enhancing decarbonisation of the energy sector, or by, aiding ongoing utilisation of the gas network, which has the potential to keep downward pressure on network tariffs for gas customers. The CRU acknowledges that innovation projects by their very nature will not always result in successful implementation. However, where innovation projects do demonstrate beneficial options for integration into business as usual activities, it is important to ensure that these are incorporated by GNI so that customers can see a benefit. The CRU decision whether to release the 2.5m will be informed by the outcomes and outputs of the innovation fund throughout PC4. In order to ensure that the CRU is in possession of the information required to make such a decision it has developed an Innovation Reporting Framework (the Framework ), which is detailed within this paper. In summary, this Framework requires GNI to submit to the CRU an end-of-year annual report, which from here on shall provide greater regard to the outcomes and outputs of innovation funding. The end-of-year annual report will now include commentary from the CRU and will be made available to the public via GNI s website. This will provide customers and stakeholders a much clearer picture as to whether, and how, past innovation projects are incorporated in business-asusual operations. The CRU s priority when developing this Framework has been to ensure, in so far as possible 4, that the gas customer s investment in innovation is providing a benefit to all gas customers. 4 Innovation by its very nature contains inherent commercial risks. 3
Table of Contents Executive Summary... 1 Public/ Customer Impact Statement... 3 Table of Contents... 4 Glossary of Terms and Abbreviations... 5 1 Introduction... 6 1.1 The Commission for Regulation of Utilities... 6 1.2 Purpose of this paper... 6 1.3 Related Documents... 7 1.4 Structure of Paper... 7 2 Innovation Funding to date... 8 2.1 Introduction... 8 2.2 Price Control 3... 8 2.2.1 Establishing the Innovation Fund and its governance... 8 2.2.2 PC3 Innovation projects... 9 2.3 Price Control 4... 9 2.3.1 Setting the PC4 allowance and ongoing use of innovation funding... 9 2.3.2 PC4 innovation projects... 10 3 Innovation Reporting Framework... 11 3.1 Introduction... 11 3.2 CRU s assessment criteria... 11 3.3 Governance... 13 3.4 Innovation Reporting Framework... 13 3.4.1 Innovation Project Forms... 13 3.4.2 Annual report... 16 4 Conclusion... 17 4.1 Next steps... 17 4
Glossary of Terms and Abbreviations Abbreviation or Term Definition or Meaning BGN CRU GIAG GNI Opex PC Bord Gáis Networks Commission for Regulation of Utilities Gas Innovation Advisory Group Gas Networks Ireland Operational Expenditure Price Control 5
1 Introduction 1.1 The Commission for Regulation of Utilities The Commission for Regulation of Utilities (CRU) is Ireland s independent energy and water regulator. The CRU was established in 1999 and now has a wide range of economic, customer protection and safety responsibilities in energy. The CRU is also the regulator of Ireland s public water and wastewater system. Our mission is to regulate water, energy, and energy safety, in the public interest. As part of its regulatory role the CRU, every 5 years, carries out a review of the revenues that Gas Networks Ireland (GNI) is allowed to recover from customers through gas tariffs for the ongoing operation and maintenance of the gas network. As part of this process, the CRU works to promote efficient investment by GNI, so that customers receive the best possible value for their money. 1.2 Purpose of this paper In September 2017, the CRU published its decision on the allowed revenues that GNI can recover from customers for the period October 2017 to September 2022 (known as PC4). In the PC4 decision, the CRU allowed a combined (Transmission & Distribution) innovation fund of up to 20.0m. The CRU made an initial 17.5m available to GNI with a further 2.5m potentially available. Although the CRU is of the view that innovation has numerous potential benefits, as reflected by its PC4 allowance 5, innovation also carries an inherent commercial risk. The CRU has a priority to protect gas customers who fund GNI and therefore carry this commercial risk. Given this, the CRU decided that it will make a final decision at a later date in PC4 as to whether GNI may recover the additional 2.5m from customers. The decision to release/or not release the additional 2.5m will be informed by the outcomes and outputs of innovation funding throughout PC4. This paper sets out an Innovation Reporting Framework (the Framework ), which details; the types of reports, the type of information which GNI is required to provide, and the criteria against which the CRU will assess the use of innovation funding. By setting out these criteria, the CRU has provided GNI and the GIAG greater insight into what may inform the CRU s future regulatory decisions in the area of innovation. In addition, this framework will provide customers and stakeholders with greater clarity as to how gas customers investment in innovation provides benefits to gas customers. 5 The CRU s PC4 allowance of up to 20.0m for innovation is potentially 150% greater than its PC3 allowance of 8.0m. 6
In developing the Framework, the CRU has considered the innovation related regulatory requirements it places on other CRU regulated utilities. The CRU aims for the Framework to be enduring in nature, not only assisting the CRU in making regulatory decisions regarding innovation funding in PC4, but also future regulatory decisions with regard to the treatment of innovation funding. 1.3 Related Documents The following documents provide further detail regarding the Innovation Fund: Consultation on October 2012 to September 2017 Transmission Revenue (CER/12/058) and Distribution Revenue (CER/12/057) for Bord Gáis Networks; Decisions on October 2012 to September 2017 Transmission Revenue (CER/12/196) and Distribution Revenue (CER/12/194) for Bord Gáis Networks; Decisions on October 2017 to September 2022 Transmission Revenue (CER/17/260) and Distribution Revenue (CER/17/259) for Gas Networks Ireland; and, Compressed Natural Gas Funding Request, Decision Paper (CER/16/313). Information on the CRU s role and relevant legislation can be found on the CRU s website at www.cru.ie. 1.4 Structure of Paper The structure of this paper is as follows: Section 1 of this paper provides a background as to the role of the CRU and the purpose of innovation funding; Section 2 provides a brief history of CRU gas innovation funding; and, Section 3 outlines the governance of innovation funding, the Innovation Reporting Framework, and the criteria against which the CRU will assess innovation funding. 7
2 Innovation Funding to date 2.1 Introduction This section provides a brief overview of the CRU s approach to innovation in the gas sector to date. 2.2 Price Control 3 2.2.1 Establishing the Innovation Fund and its governance For the price control period October 2012 to September 2017 (PC3), Bord Gáis Networks (BGN), now GNI, developed a proposal document for innovation funding and set out principles for a governance structure in PC3. As part of its proposals regarding innovation, BGN discussed the idea of forming an innovation group (to manage resources, project selection, etc.), which would work with internal and external BGN stakeholders, especially the CRU, to share knowledge and better utilise available resources. The CRU reviewed this proposal and considered precedent from existing innovation funding programmes in the Irish and UK energy sectors. The CRU then asked respondents to put forward their views regarding appropriate governance arrangements in its PC3 Consultation Papers. 6 In its PC3 decision 7, the CRU, set a total allowance of 8.0m for innovation. This allowance covered innovation activities for both the Transmission Business Unit and Distribution Business Unit. The CRU decided that innovation funding is to be treated as operational expenditure (Opex), as this avoids complications of including small capital projects in the Regulatory Asset Base and is more consistent with the focus of innovation funding. In addition, the CRU stated that it would consider further the governance arrangements for innovation funding and engage with stakeholders as appropriate. Subsequent to the decision, progress was made in establishing a Gas Innovation Group 8, chaired by the CRU, with submissions made to the CRU for approval of various projects to proceed through the innovation fund. In 2014, the CRU considered further the governance arrangements for this fund. The CRU came to the view that it is implicit in the Irish energy regulatory framework that the responsibility for the expenditure of monies collected from consumers, should rest with the entity which has control over the funds. In essence, GNI has ultimate responsibility for the spending 6 Consultations on October 2012 to September 2017 Transmission Revenue (CER/12/058) and Distribution Revenue (CER/12/057) for Bord Gáis Networks. 7 Decisions on October 2012 to September 2017 Transmission Revenue (CER/12/196) and Distribution Revenue (CER/12/194) for Bord Gáis Networks; 8 Now known as the Gas Innovation Advisory Group (GIAG). 8
of gas customers money and therefore the control over spending should lie with GNI. From this point onwards, the innovation funding appraisal and approval process was carried out by GNI under its financial governance framework. GNI and the CRU decided that for the remainder of the monies in the PC3 innovation fund, GNI would issue to the CRU: An annual high-level plan outlining the proposed approach to spending for the forthcoming period, outlining the amount of monies to be spent in each area or pot ; for the approval of the CRU, and, A twice yearly update on innovation funding. An initial Progress Report, inter alia, to contain an overview of the applications received and details of the allocated funds. From then on future reports, to also contain updates on the implementation of projects that have received funding. 2.2.2 PC3 Innovation projects PC3 research topics ranged from strategies for increasing residential connections to the gas network, to the role of biogas in greening agriculture and industry. With the support of the innovation fund, GNI carried out CNG trials with a cross section of industry, completed CNG design specifications and procured CNG equipment. In addition, GNI approved funding for the development of a renewable gas direct injection facility. 2.3 Price Control 4 2.3.1 Setting the PC4 allowance and ongoing use of innovation funding Taking into account GNI s request and recognising that continued utilisation of the gas network is essential to help keep downward pressure on network tariffs for gas customers, the CRU decided to allow GNI an innovation fund of up to 20.0m for PC4. In particular, the CRU noted the Government s White Paper 9, and is of the view that an innovation fund of up to 20.0m is appropriate as Ireland moves to decarbonise the economy. The CRU initially awarded GNI 17.5m for innovation, with a further 2.5m potentially available to GNI. This sum is inclusive of innovation funding already included in the CRU decision on the Causeway Study ( 12.83m) 10, which will fund the roll-out of a number of CNG stations during PC4. The CRU stated in its PC4 decision that it is important for GNI to continue to explore other types of technologies through the operation of the GIAG established during PC3. It will be the responsibility of GNI in consultation with the GIAG to determine the best possible use of the innovation funding. 9 Ireland s Transition to a Low Carbon Energy Future, 2015-2030 10 Compressed Natural Gas Funding Request, Decision Paper (CER/16/313). 9
Applications for funding submitted to the GNI will demonstrate the potential to achieve the following: Will deliver significant carbon savings; Increase throughput through the gas system; Assists in the transition to a low carbon economy; and Provide measurable value to all gas customers. In its PC4 decision, the CRU highlighted that decisions for funding approved by GNI should have measurable outputs and outcomes for the projects. The CRU also decided that innovation funding will continue to be treated as Opex. As the CRU sets the Opex allowance on a total level, the regulatory framework allows GNI to spend on innovation outside of the innovation funding allowance to deliver savings to customers in the long term. The CRU is now elaborating on its PC4 decision by establishing an innovation reporting framework, which is detailed in Section 3.4. 2.3.2 PC4 innovation projects A portion of the PC4 innovation fund has already been committed to the Causeway Study ( 12.83m), which involves the installation of 14 CNG stations in Ireland. In addition, GNI s PC4 submission included a request for funding for biogas purification (i.e. upgrading biogas to biomethane for injection into the gas network), power-to-gas, low carbon heating solutions and carbon capture and storage projects, as well as, research and programme management funding. 10
3 Innovation Reporting Framework 3.1 Introduction This section highlights the criteria against which the CRU will assess innovation funding, sets out the CRU s view on the governance of innovation funding and it details the Innovation Reporting Framework. 3.2 CRU s assessment criteria The CRU will assess the information provided in the project templates and annual reports. The CRU is of the view that projects funded by innovation funding should aim to achieve: The transition to a decarbonised economy; Increased throughput on the gas system; and, Measurable value to all gas customers. The transition to a decarbonised economy The CRU is of the view that one of the key aims of the innovation fund should be to aid the transition to a decarbonised economy. Government policy 11 indicates that natural gas will continue to play a key role as a transitional fuel, this is due to its ability to provide a flexible base load for the electricity network, with the benefits of a reduced carbon footprint when compared to oil, peat and coal. In addition, the Government s National Mitigation Plan highlighted a role for biogas in reducing Ireland s greenhouse gas emissions. However, it is also important to explore costeffective options to decarbonise gas. The CRU noted Government policy when setting the PC4 allowance and continues to be of the view that this is a key criteria, against which it will assess the use of the innovation fund. As a result, project reports should highlight how the project makes a contribution to the Government s current strategy for reducing greenhouse gas (GHG) emissions. Increased throughput on the gas system In its PC4 submission, GNI highlighted that in the longer term, energy and climate change policies, EU directives and technological developments in areas such as energy storage, renewable energy generation and energy efficiency, may lead to a significant reduction in demand for fossil fuels. As 11 DCCAE (Department of Communications, Climate Action and Environment) (2015) White Paper on Ireland s Transition to a Low Carbon Energy Future., DCCAE, Dublin & DTTAS (Department of Transport, Tourism and Sport) (2017) National Policy Framework on Alternative Fuels Infrastructure for Transport in Ireland - 2017 to 2030. 11
part of its PC4 submission, GNI cites independent modelling which estimates that these dynamics could reduce demand for gas by 40% - 60% or more by 2050. Although in the longer term a reduction in demand for fossil fuels is positive for Ireland, it is important that in the short to medium term that natural gas can support the transition to a decarbonised economy. There is a risk that gas customers may face increasing tariffs unless GNI is able to maintain demand on the network without additional cost. In addition, as tariffs increase the viability of gas as a transitional fuel source may decrease, which could in turn result in stranded assets on the gas network. In order to ensure that the cost of gas to customers remains competitive, GNI must aim to maximise utilisation of the gas network whilst driving cost efficiencies. As a result innovation funding should aim to increase, or at least, maintain current levels of utilisation of the gas network. Measurable value to all gas customers As highlighted in the Public Impact Statement, as economic regulator of GNI, the CRU s role is to protect gas customers by ensuring that GNI spends customers money appropriately and efficiently to deliver the necessary services. As a result, innovation funding should aim to deliver value for money for gas customers, this will play a key role in the CRU s assessment of innovation funding. 12 As innovative projects can often lead to wider economic benefits, the CRU is of the view that it is prudent for GNI to part-fund projects in so far as possible, in order to reduce the sole risk to the gas customer. For clarity, the CRU does not expect every project funded to result in a measurable value for gas customers due to the inherent risk of innovation. These projects will not always result in successful implementation of new technologies or processes, and in fact the learning of a project may be that it is not a viable option. However, the CRU expects that as a whole the project portfolio should provide a benefit to gas customers, which is reflective of the level of their investment. Other benefits The CRU will also take into account any other benefits that innovation funding may achieve although these will carry less weighting than the aforementioned points, such benefits may include: research projects shared internationally that increase the stock of knowledge; additional environmental benefits in areas other than GHG emissions should also be highlighted and will be taken into consideration; and, increased security of supply. 12 In the exceptional case that any benefits are derived on intellectual property rights by GNI as a result of projects funded under the innovation fund, these should accrue to the customers of GNI. 12
3.3 Governance Currently, innovation funding is administered by GNI with the GIAG acting as advisors. The GIAG is comprised of representatives from academia, industry and policy, and is tasked with reviewing each funding application and advising GNI on the potential merits of each application. 13 The CRU is of the view that the current governance structure continues to be fit for purpose for the reasons outlined in section 2.2.1. 3.4 Innovation Reporting Framework 3.4.1 Innovation Project Forms GNI are now required to submit Initial Innovation Project Forms and a Completed Innovation Project Forms for each project awarded funding. A template for these forms has been provided by the CRU in Table 3.1. The template details the information required when submitting each form. The form should contain the information prescribed in Table 3.1 at a minimum. There are two innovation funding forms. An Initial Innovation Project Form is to be completed for each project and submitted to the CRU within one month of a project being awarded funding. 14 A Completed Innovation Project Form is to be submitted for each project within three months of completion of the project. The CRU understands that the due to their nature, innovative projects may span a number of years. In addition, projects may require extended periods of monitoring in order for learnings, outcomes and outputs to be fully realised, and for any implementation to take place. The CRU requires that Completed Innovation Project Forms are updated annually and resubmitted to the CRU for projects that involve extended periods of monitoring; as the learnings, outcomes and outputs develop over time, and as any implementation takes place. The CRU will agree with GNI on the number of additional updated Forms required on a project by project basis. These forms essentially allow the CRU to assess the outcomes and outputs of a project against the aims and objectives of that project. As innovative projects often span a number of years, there is a possibility that the CRU may have limited information on the outputs and outcomes of the PC4 innovation fund when making its decision whether to release the additional 2.5m before the end of PC4. As a result, the CRU requests that GNI provides a Completed Innovation Project Form for each completed project that 13 Members of the GIAG are listed on GNI s website, found here. 14 As PC4 began on 1 st October 2017 it is possible that a number of projects have already received funding from the PC4 innovation fund. The CRU requires that Initial Innovation Project Forms are submitted for these projects within two months of the publication of this document. 13
received PC3 innovation funding, within 2 months of the publication of this document. Completed Innovation Project Forms are to be submitted on an ongoing basis as projects funded through the PC3 innovation allowance reach completion over the course of PC4. Table 3.1: Template for Initial Innovation Project Forms and Completed Innovation Project Forms Info: Description: Include in: Applicant Body or bodies that have submitted the application. Both forms Title Details the project title. Both forms Category Details the category within which the project sits. Both forms Project Cost Estimated cost of the project. Estimate Project Cost Final Final cost of the project. Funding awarded % Funding Estimate Total funding awarded to the project by GNI in consultation with the GIAG. Funding awarded as a percentage of the initial estimated project cost. % Funding Final Funding awarded as a percentage of the final Description project cost. Provide a detailed description of the project including its design, aims and objectives (include the quantitative metrics the project hopes to achieve where available, e.g. 1% increase in throughput). Detail how the project delivers the types of benefits highlighted by the CRU in Section 3.4 of this paper. Explain the aspects of the project that are innovative, why it would not happen as part of business as usual, and, provide a brief overview of the current state of the knowledge in the project area. This detail should allow for the learnings, outputs and outcomes upon completion of the project to be assessed against the aims and objectives of the project detailed here. As such any changes to the Description between the Initial and Completed form should be submitted as tracked changes. Both forms Completed form only Both forms Both forms Completed form only Both forms 14
Info: Description: Include in: Timeline Learnings Outputs & Outcomes Implementation Contains estimated start date and completion date, alongside, any key project milestones or project phases. Any delays in the project timeline should be detailed in the Completed Form. Provides a detailed assessment of project learnings, improvements that could be made, and recommendations for, or against, any further work in this area. Provides a detailed assessment of the outputs & outcomes of the project. For example, the improvement in performance attributable to the project and the benefit to the gas customer. Detailed quantitative data should be included where available. An example of such data would be: - Carbon savings that the project delivered. - Increase in gas throughput due to the project. Outlines whether GNI plans to implement the learnings, outputs or outcomes of the project and in the case that implementation is planned, provide a detailed description of how this will take place. Detailed quantitative data highlighting potential benefits to the network, environment and gas customer following implementation should be included where available. In the case that implementation can t currently take place, GNI should explain any obstacles that need to be overcome for this to happen, and what they view as the appropriate next steps. Both forms Completed form only Completed form only Completed form only 15
3.4.2 Annual report Currently GNI, in consultation with the GIAG, submits a mid-year and an end-of-year annual report to the CRU. The CRU no longer requires that GNI submit a mid-year report to the CRU, however, the end-of-year annual report is to be retained. The end-of-year annual report, is to be published by GNI, in consultation with the GIAG, by 20 December each year on GNI s public website. GNI will present to the CRU on this report one month prior to its publication, in order to allow the CRU to form a view and provide a CRU commentary. This commentary is then to be incorporated into the report in a similar fashion to the CRU s commentary on GNI s National Development Plan. This report will provide stakeholders and customers a clear picture on how projects funded through the innovation fund are being incorporated in business-as-usual operations and providing a benefit to customers. 3.4.2.1 Report detail The annual report should continue to be high-level in nature. The CRU is of the view that the annual report in its current iteration is of sufficient standard, however, the CRU requires that the report gives emphasis to the outputs and outcomes of innovation funding, so that the benefits of the projects are clearer to those reading the reports. In addition, the CRU will provide a commentary on innovation funding, which is to be incorporated into the end-of-year annual report. A similar table to Table 3.2 below has been included in previous innovation reports. The CRU is of the view that this table provides a useful high-level summary of the current state of the innovation fund, therefore, CRU requires that it continues to be included in future annual reports. Table 3.2: Template for Innovation Fund Summary Category Applications Funding Awarded Balance Breakdown of innovation by category (e.g. CNG, Biogas, Research, Project MGMT) Details the number of applications in each category and the total funding requested. Details the number of projects which have been awarded funding and the total funding awarded. Details the amount of innovation funding that remains. In addition, the CRU requires that where GNI awards funding for research purposes, GNI publishes on its website; a detailed summary of the results of such research, contributors to the research, and a link to any official publication 15 stemming from the research. 15 Often official publications within academic journals may be pay walled. This is not something in the control of GNI. 16
4 Conclusion Following the CRU s decision to allow GNI an innovation fund of up to 20m over PC4, the CRU has developed and presented, within this paper, an Innovation Reporting Framework. The CRU has detailed the types of reports and the type of information that GNI is required to provide the CRU. In addition, this paper also sets out the criteria against which the CRU will assess the use of innovation funding and how it will inform the public of its assessment. 4.1 Next steps On an ongoing basis GNI will provide the CRU Initial Innovation Project Forms for each project awarded innovation funding and Completed Innovation Project Forms for each completed project within three months of completion of the project. The CRU also requests that GNI provides a Completed Innovation Project Form for each completed project that received PC3 innovation funding, within 2 months of the publication of this document. The first PC4 end-of-year annual innovation report, is to be published by GNI, in consultation with the GIAG, by 20 December 2018 on GNI s website. The end-of-year annual reports will be made available to the public on GNI s website and will incorporate CRU commentary. 17