Is there sufficient investment in R&D and innovation for transmission and distribution technologies?
3.31 We believe there is, at least in the early stages of development, sufficient investment and the Innovation Funding Incentive has been very successful. 3.32 Whilst there is an R&D allowance under the transmission price controls, the ENSG transmission report suggests using HVDC technology and series reactors, which are new technology for deployment onshore in the UK. Early signals to the supply chain for the need for these technologies will facilitate the specialist supply chain to invest in enhanced capacity and capability for the UK market. Again, long term regulatory stability will help to ensure the necessary investment is made by the specialist supply chain. What can the UK learn from the experience of other countries’ management of their electricity networks? 3.33 Experience from the feed in tariff in Germany gave rise to a growth in renewable generation in Germany. This was ahead of the capability of the network to meet the fluctuations in generation and demand to cope with t