Ofgem Strategic Innovation Fund Discovery C6

Organisations can apply for a share of up to £30 million exclusive of VAT, for collaborative Discovery Phase Projects that meet the Innovation Challenges. This funding is from the Ofgem Strategic Innovation Fund.

  • Opening date:
  • Closing date:

Get updates about this grant

Sign up for updates

Contents

Summary

Description

This competition is delivered by Innovate UK in partnership with the Office of Gas and Electricity Markets (Ofgem). It is funded by the Ofgem Strategic Innovation Fund, which aims to deliver net zero at lowest cost to consumers and support innovative businesses to grow and scale.

Discovery is the first phase of a four phase competition:

  1. Discovery

  2. Alpha

  3. Beta

  4. Deployment

There are five challenge areas in the Discovery Phase:

  • Challenge 1: Industrial and business connection acceleration

  • Challenge 2: Faster build and maintenance

  • Challenge 3: Instant use domestic energy devices

  • Challenge 4: Eliminating energy outages

  • Challenge 5: Decentralised system balancing

You are encouraged to consider all areas of your Project from the Discovery phase through to commercialisation following Alpha, Beta and Deployment.

This competition is open to collaborative applications only.

Your Project must address one of the Innovation Challenges. You must plan for the development of your Project to meet an Innovation Challenge through to:

  • live testing in the Alpha Phase

  • large-scale demonstration in the Beta Phase

  • deployment of the proven solution into business as usual at the Deployment Phase

It is the responsibility of the lead applicant to ensure that you are entering the appropriate Innovation Challenge for your Project. You will not be able to transfer your application, and it will not be sent for assessment if it is out of scope.

Successful applicants from the Discovery Phase will be invited to apply for the Alpha Phase.

In applying to this Discovery Phase competition, you are entering into a competitive process.

Any adoption and implementation of a solution from this competition would be subject to a separate, possibly competitive, procurement exercise.

This competition closes at 11am UK time on the deadline stated in this Innovate UK competition brief. We cannot guarantee other government, or third party sites will always show the correct competition information.

Funding type

Thirdparty

Project size

Your Discovery Phase Project must have a total requested funding of no more than £200,000 exclusive of VAT.

Accessibility and Inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments for people who have a disability or a long term condition and face barriers applying to us.

You can contact us at any time to ask for guidance.

We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.

You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

Eligibility

Who can apply

This award has been designed to be provided on a no subsidy basis, as defined in the Subsidy Control Act 2022.

This means to be eligible, the award will not give an economic advantage to one or more organisations, and you must not be acting economically as an organisation within the meaning of the act.

In limited circumstances, EU State aid rules may apply under the Windsor Framework and a ‘No Aid’ award may be given in accordance with the R&D&I Framework.

Your Project

Your Project must:

  • have total eligible Strategic Innovation Fund (SIF) requested funding of no more than £200,000, exclusive of VAT

  • provide a minimum of 10% of total Project costs as a compulsory contribution from private funds

  • start after 1 September 2026

  • end by 31 January 2027

  • be completed within the five month window

Your Project deliverables must be completed within the five month window stated.

If your Project is completing an initial Discovery phase to develop an Innovation Charter, you will not be subject to a minimum 10% Compulsory Contribution. No Compulsory Contribution will be required.

You are required to fulfil all monitoring requirements, for example, kick off meeting, end of phase meetings and Project show and tells, further guidance will be provided.

Projects must always start on the first of the month, even if this is a non-working day and this must be stated within your application. You must not start your project until your Project Direction has been received and approved. Your Project start date will be reflected in your Project Direction if you are successful.

You must only include eligible project costs in your application. See our overview of eligible project costs.

Lead organisation

To lead a Discovery Phase Project, you must:

  • be an Ofgem licensed gas distribution network, gas transmission, electricity transmission, electricity distribution, or National Energy System Operator (NESO)

  • work with at least one other organisation as a Project Partner

Project Partners

For this Competition, there are no specific Project partner requirements in addition to the lead network licensee.

You are encouraged to have other Project Partners. Your Project Partners can include a variety of third party innovators such as:

  • start-ups

  • SMEs

  • suppliers

  • academics

  • independent researchers

  • disruptors

  • other licenced energy network companies

This list is not intended to be exhaustive.

The Project Direction will be awarded to a single legal entity only.

If successful, the Project Direction will be awarded only to the lead network (Funding Party). Project Partners must be responsible for at least one deliverable in the Discovery Phase.

Ofgem are looking for proposals that involve all the necessary stakeholders relevant to the proposed innovation. We particularly encourage Projects working with suitable SME technology developers and growth companies.

Each Project Partner organisation must be invited into the Innovation Funding Service (IFS) by the lead to collaborate on a Project. Once Project Partners have accepted the invitation, they will be asked to login or to create an account in IFS. They are responsible for entering their own Project costs in the application.

To be an eligible collaboration, the lead and at least one other organisation must:

  • apply for funding when entering their costs into the application

  • include rationale for the collaboration and describe the structure in your application

Non-funded partners

Your project can include organisations who do not claim any funding for their work on the project. Their costs will be covered from their own resources. These can include UK, EU and other non-UK organisations. Non-UK partners are permitted to carry out project work from within their home countries and exploit the results outside the UK.

Where non-funded partners have been invited to the application on IFS, their costs will count towards the total eligible project costs.

Sanctions

This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Applicants must ensure that all of the proposed work within projects, both in the UK and internationally, will comply with the UKRI guidance on the use of animals in research and innovation.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

Previous applications

Ofgem will not award funding if you have failed to comply with the Eligibility Criteria set out in Chapter 3 of the SIF Governance document.

In line with paragraph 7.9 in the SIF Governance Document, Projects submitted under previous rounds of the SIF are eligible to request permission to re-apply into SIF Innovation Challenges. This is on the condition that your Project:

  • meets the Innovation Challenge scope, Eligibility Criteria, and Partner requirements

  • acknowledges the focus of the Innovation Challenges’ changes with each round of the SIF

  • has changed materially since it was last submitted as a result of the consideration of feedback

If you are resubmitting a previously unsuccessful SIF Project, you must contact Innovate UK and Ofgem for approval as soon as possible prior to resubmission. You must email Innovate UK at SIF_Ofgem@iuk.ukri.org and copy in Ofgem at networks.innovation@ofgem.gov.uk.

You must provide an explanation as to how the Project has materially changed since it was last submitted and how the Project aligns with the current Innovation Challenge.

Ofgem is the decision maker on the SIF. It is at Ofgem’s discretion (on a case by case basis) whether Projects have materially changed since a Project was last submitted and are eligible to reapply.

No subsidy (and non-aid where applicable)

No subsidy

This competition has been designed to provide funding that is not classed by Innovate UK as a subsidy.

Your eligibility to be given an award on a ‘No Subsidy’ basis will be determined by Innovate UK after you have submitted your application.

You should still seek independent legal advice on what this means for you, before applying.

Further information about the Subsidy Control Act 2022 requirements can be found within the Subsidy Control Act 2022 (legislation.gov.uk).

It is the responsibility of the lead organisation to make sure all collaborators in the project remain compliant with the ‘No Subsidy’ status they are awarded.

It is important to note that it is the activity that an organisation is engaged in as part of the project and not its intentions, that define whether any support provided could be considered a subsidy.

EU State aid rules now only apply in limited circumstances. See the Windsor Framework to check if these rules apply to your organisation.

In the ‘Project details’ section of your application you will be asked questions to indicate if State Aid or Subsidy applies to your organisation.

Further Information

If you are unsure about your obligations under the Subsidy Control Act 2022 regime you should take independent legal advice. We cannot advise on individual eligibility or legal obligations.

Funding

A total SIF funding of up to £30 million exclusive of VAT is allocated to the Discovery Phase across the five challenges.

We reserve the right to adjust funding allocations for any of our competitions under exceptional circumstances, for example, in response to changes in policy, portfolio funding considerations, or broader government funding decisions.

Matched contributions that exceed the 10% mandatory minimum contribution will be assessed as delivering greater value for money. Projects must also consider the suitability of sourcing additional private or public funding where it may be unsuitable for consumer bill payers to finance assets or other equipment and resources.

If you are unsure whether your Project or parts of your Project are eligible for funding in this competition, you must contact us by email to SIF_Ofgem@iuk.ukri.org at least five working days before the competition closes. We will decide whether to approve your request.

The total funding available for the competition can change. The funders have the right to:

  • adjust the provisional funding allocations between the phases

  • apply a portfolio approach based on technology, geography, innovation, markets, and participants

Ofgem reserve the right to make the final decision as to which Projects are funded.

At the end of Discovery Phase all milestones detailed in the Project Direction must be fulfilled. The successful organisation will be invited to submit an application into the Alpha phase and a further assessment will take place.

Objectives

Your proposal

This competition is delivered by Innovate UK in partnership with the Office of Gas and Electricity Markets (Ofgem). It is funded by the Ofgem Strategic Innovation Fund, which aims to deliver net zero at lowest cost to consumers and support innovative businesses to grow and scale.

Each Innovation Challenge as listed in the Innovation Challenge document has different aims.

You must select which challenge your Project is working on.

  • Challenge 1: Industrial and business connection acceleration

  • Challenge 2: Faster build and maintenance

  • Challenge 3: Instant use domestic energy devices

  • Challenge 4: Eliminating energy outages

  • Challenge 5: Decentralised system balancing

Your Project must meet the Eligibility Criteria of the Strategic Innovation Fund (SIF), as stipulated in the SIF Governance Document.

Applicants must demonstrate that the Projects deliver a net benefit to consumers through:

  • financial cost reductions, for example, in operating the network, energy bills, users of network services

  • emission reduction

  • access to revenues for network users

  • introducing new products, process and services to the UK energy market

Your proposal must focus on network innovation that can benefit GB energy network infrastructure, consumers, operation, and utilisation.

You must address:

  • users and their context

  • constraints affecting the problem or wider context

  • opportunities for improvement

  • environmental impacts

At this stage a Project Direction will be issued for the Discovery Phase only. Successful applicants will be invited to apply for Alpha Phase.

The Discovery Phase of a Project will define the problem and the value in solving it. It will also facilitate a common understanding of consumers’ and network users’ needs from the innovation and identifying constraints.

The Alpha Phase will focus on preparing and testing solutions that are identified during the Discovery Phase, ahead of any large-scale demonstration of the Project in the Beta Phase.

Specific themes

Innovation Challenge focus

Any proposed Project must consider how it contributes to these overarching objectives:

  • Cost reduction: Drastically reducing whole life infrastructure costs and enhancing resilience aims to ensure affordability and unlock billions in economic savings and opportunity. New business models and service definitions will allow value to be better realised by customers

  • Customer outcomes: Radically simpler engagement with networks to connect assets, and significantly higher resilience, meet the needs of customers from households to major sites

  • Economic growth: Accelerating connections across vectors and asset scales, and minimising the disruption caused by infrastructure works, will streamline expansion of energy intensive sites and uptake of new technology by consumers

  • Decarbonisation: Reshaping the architecture of system operations is a prerequisite for the rapid connection of tens of millions of smart, flexible decarbonised demand assets. Time and cost efficiency of infrastructure deployment allow the networks to support new clean energy resources to come on stream

Projects we will not fund

Ofgem will not fund Projects that do not meet the requirements of the SIF Governance Document.

Dates

27 May 2026

Live briefing event: join at 10am

Briefing slides will be available to download from supporting information after the event.

27 May 2026

Competition opens

24 June 2026 11:00am

Competition closes

22 July 2026

Applicants notified

20 August 2026

Project Direction issued

1 September 2026

Project start after

How to apply

Before you start

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

SIF Governance Document - terms and conditions (T&Cs)

The SIF Governance Document is specific to the Ofgem Strategic Innovation Fund (SIF). It is issued by Ofgem further to the SIF Licence Condition and sets out the governance and administration of the SIF. Network operators and the Electricity System Operator must comply with the SIF Governance Document.

The SIF Governance Document provides more information on:

  • Eligibility Criteria

  • application process

  • assessment of Projects

  • Project delivery and monitoring

  • funding arrangements

  • Project administration, including compliance and audits

  • intellectual property rights and royalties

  • learning and collaboration, including external stakeholder relationship development, information sharing and reporting

This list is not exhaustive.

If your application is successful, Ofgem will issue a Project Direction to the network licensee leading the Project, which confirms the special conditions, deliverables, costs and milestones for which they are accountable during the upcoming Phase.

It is the responsibility of each partner in the Project to ensure that they have read the SIF Governance Document. By ticking the T&Cs box in IFS ahead of the application being submitted, you are confirming that you have read the SIF Governance Document and are satisfied that you understand the regulatory framework.

You can contact us if there is any aspect of the SIF you do not understand.

Before submitting, it is the lead applicant’s responsibility to make sure:

  • that all the information provided in the application is correct

  • your proposal meets the eligibility and scope criteria

  • all sections of the application are marked as complete

  • that all partners have completed all assigned sections and accepted the terms and conditions (T&Cs)

You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.

What we ask you

The application is split into three sections:

  1. Project details.

  2. Application questions.

  3. Finances.

Accessibility and Inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments for people who have a disability or a long term condition and face barriers applying to us.

You can contact us at any time to ask for guidance.

We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.

You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

1. Project details

This section provides background for the Expert Assessors and is not scored.

We may ask for further information from you at the Project kick off stage if you are successful.

Application team

Decide which organisations will work with you on your Project and invite people from those organisations to help complete the application.

Application details

Give your Project’s title, start date and duration. This must be after 1 September 2026 your Project must be completed within five months of this date and end by 31 January 2027.

Public description

Provide:

  • a one-line description of your Project (up to 30 words)

  • a short Project description that succinctly summarises your Project (up to100 words)

Describe your Project in detail, and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your Project funding, we will publish this description. This can happen before you start your Project.

Your answer can be up to 200 words long.

Innovation Challenge

Select the Innovation Challenge that your Project is aligning with.

Innovation Challenges:

  • Challenge 1: Industrial and business connection acceleration

  • Challenge 2: Faster build and maintenance

  • Challenge 3: Instant use domestic energy devices

  • Challenge 4: Eliminating energy outages

  • Challenge 5: Decentralised system balancing

2. Application questions

A selected panel of independent Expert Assessors will review and assess your application.

The Expert Assessors will review your answers for each question. The Expert Assessors will score your responses against the SIF Eligibility Criteria.

All applicants will be provided with feedback.

Your show and tell presentation will be considered as part of your submission for the next phase.

You must answer all questions.

Your answer to each question can be up to 400 words long.

You must not include any website addresses or links (URLs) in your answers. Any website addresses or URLs included, will not be viewed or opened.

All required templates are available to download from the SharePoint folder in question 14. Once completed, this Excel spreadsheet must be uploaded in response to question 14.

Question 1. Lead Network

You must select the Lead Network, who will be the funding recipient, for this application:

  • Cadent Gas Limited (Cadent)

  • National Energy System Operator (NESO)

  • National Grid Electricity Distribution (WMID): West Midlands Plc

  • National Grid Electricity Distribution (EMID): East Midlands Plc

  • National Grid Electricity Distribution (SWALES): South Wales Plc

  • National Grid Electricity Distribution (SWEST): South West Plc

  • National Grid Electricity Transmission Plc (NGET)

  • National Gas Transmission Plc (NGT)

  • Northern Gas Networks Limited (NGN)

  • Northern Powergrid (Northeast) Plc (NPgN)

  • Northern Powergrid (Yorkshire) Plc (NPgY)

  • Scottish and Southern Energy Power Distribution (SHEPD): Scottish Hydro Electric Power Distribution Plc

  • Scottish and Southern Energy Power Distribution (SSEPD), Southern Electric Power Distribution Plc

  • Scotland Gas Networks Plc (SGN)

  • Southern Gas Networks Plc (SGN)

  • Scottish Hydro Electric (SHE) Transmission Plc

  • SP Electricity North West (SPENW)

  • SP Energy Networks: Distribution Ltd (SPD)

  • SP Energy Networks: Manweb Plc (SPMW)

  • SP Transmission (SPT)

  • UK Power Networks: London Power Networks Plc (LPN)

  • UK Power Networks: South Eastern Power Networks Plc (SPN)

  • UK Power Networks: Eastern Power Networks Plc (EPN)

  • Wales & West Utilities Limited (WWU)

Question 2. Animal testing

Will your Project involve any trials with animals or animal testing?

You must select one option:

  • Yes

  • No

We will only support innovation Projects conducted to the highest standards of animal welfare.

Further information for proposals involving animal testing is available at the UKRI Good Research Hub and NC3R’s animal welfare guidance.

Question 3. International collaboration

Does your proposed work involve any international collaboration or engagement?

You must provide details of any expected international collaboration or engagement.

You must include a list of the names and the countries, any international project co-leads, project partners, visiting researchers, or other collaborators are based in.

You must also include details of any subcontractors or service providers.

If your proposed work does not involve international collaboration or engagement, your answer must confirm this.

Question 4. Export licence

You must indicate whether an export control license is required for this project under the academic export control guidance.

You must select one option:

  • Yes

  • No

Question 5. Trusted Research and Innovation

You must explain if your proposed project work relates to UKRI’s Trusted Research and Innovation (TR&I) Principles, including:

  • a list of any dual-use (both military and non-military) applications to your research

  • a list of the areas where your project is relevant to one or more of the 17 areas of the UK National Security and Investment (NSI) Act

  • whether an export control license is required for this project under the academic export control guidance and the status of any applications

  • a list of any items or substances on the UK Strategic Export Control List

If your proposed work does not relate to UKRI’s TR&I Principles, your answer must confirm this.

We may ask you to provide additional TR&I information at a later date, in line with UKRI TR&I Principles and funding terms and conditions.

Question 6. Problem statement

You must provide a summary of your solution and explain how it has developed since its original conception.

In your response, you must:

  • identify the specific problem your Project is addressing, including who is affected and why the problem is important

  • explain how your Project will explore, develop, or test solutions to the identified problem

  • explain how your Project aligns with the primary Innovation Challenge aim and focus area and, where relevant, identify how it also contributes to other Innovation Challenge aims and focus areas

  • identify the intended users of your innovation and explain how your understanding of their needs has evolved over time

  • identify other relevant innovation Projects, programmes, or industry initiatives and explain how they relate to or inform your Project

  • explain how your Project meets the needs of its intended users and the value it is expected to deliver

This question covers these Eligibility Criteria, as outlined in chapter 3 of the SIF Governance Document:

  • Eligibility Criterion 1: Projects must address the Innovation Challenges set by Ofgem

  • Eligibility Criterion 10: Projects must consider the needs of the end customers and outline how these stakeholders have been, or will be, meaningfully engaged in the development and adoption of the innovation

Question 7. Portfolio Integration and Strategic Alignment

How does your Project align with the Innovation Delivery Group’s selected objectives? Is this application part of a suite of related applications?

You must explain:

  • how your Project aligns with other Projects within the relevant Innovation Challenges

  • how your application is related to other applications within the cycle, for example as part of a portfolio of work, and the impact of not receiving funding

  • identify how your Project builds on previous innovation activities and avoids duplication of existing work

  • how your Project contributes collectively to the outcomes of the relevant Innovation Challenges

  • how your Project provides additional value or advancement

  • if applicable, the justification for why your Project sits outside the scope of an Innovation Delivery Group and how it will still integrate strategically with the wider Innovation Challenges and the overall objectives of the SIF

You can upload relevant supporting documentation in a separate appendix to support your answer. It can include images and diagrams, it must be a PDF and no larger than 10MB in size. The font must be legible at 100% zoom.

This question covers these Eligibility Criteria, as outlined in chapter 3 of the SIF Governance Document:

  • Eligibility Criterion 1: Projects must address the Innovation Challenges set by Ofgem

  • Eligibility Criterion 9: Projects must clearly demonstrate how they build upon existing or previous innovation initiatives and articulate how they provide additional value or advancement

Question 8. Video

Provide a link to a video that summarises your Project and the problem you are looking to solve. Your video must be no longer than 120 seconds.

In your video you must summarise:

  • the problem you are addressing

  • your idea in providing a solution

  • the benefits it will bring to customers

You must upload a video to YouTube and provide a link to your video and any passwords to allow access to it. You must ensure your video is ‘unlisted’ in the privacy settings.

If we are unable to view your video or it is not hosted on YouTube, your application will be made ineligible. The video must remain available for 12 months from the submission date.

You can find more information on how to create an unlisted video on YouTube.If your Project is successful in winning funding, Innovate UK will publish your short video as part of the press release for this Phase.

Your submitted video must be:

  • suitable for representing your Project and company in public

  • an acceptable standard for Innovate UK's YouTube channel

Separate guidance on quality standards is available in the External Handbook. If necessary, we may ask you to remake your video to a better standard before publication.

If you are having problems uploading your video to YouTube, you must contact support@iuk.ukri.org at least 10 working days before the competition closes for advice.

Question 9. Innovation justification

How does your Project continue to demonstrate novel and ambitious innovation in energy networks?

In your response, you must:

  • describe your Project’s core innovations and the supporting technical understanding

  • explain how your Project’s scale and scope is aimed at delivering SIF objectives and the relevant Innovation Challenge

  • explain why your Project cannot be funded through price control mechanisms or business as usual activity

You can upload relevant supporting documentation in a separate appendix to support your answer. It can include images and diagrams, it must be a PDF, up to two A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

This question covers these Eligibility Criteria, as outlined in chapter 3 of the SIF Governance Document:

  • Eligibility Criterion 3: Projects must involve network innovation

  • Eligibility Criterion 4: Projects must support or, at a minimum, be consistent with the development and growth of competitive markets

  • Eligibility Criterion 5: Projects must be innovative novel and/or risky

Question 10. Impacts and benefits

For all SIF benefits identified in the Impacts and Benefits section, you must:

  • describe the current position (the pre-innovation baseline), outlining how the problem is currently managed and associated limitations

  • explain the direct benefits that the proposed innovation could create, these should be in the context of Financial, Societal or Environmental benefits

  • qualify any benefits already realised through Project delivery

  • identify any indirect or additional benefits that may arise from the innovation

  • describe how the Project will pass benefits on to energy consumers, demonstrating consumer value from the funding invested

This question covers Eligibility Criterion 2: Projects must have clearly identified potential to deliver a net benefit to consumers (whomever is paying for the innovation) or a whole system benefits, as outlined in chapter 3 of the SIF Governance Document.

Question 11. Teams and resources

Who is in your Project team and what are their roles and responsibilities?

You must explain:

  • why you chose your Project Partners and subcontractors, indicating if this is a new or pre-existing relationship

  • the roles, skills and experience of each Project Partner or subcontractor to deliver their part of your Project

  • the resources, equipment and facilities needed for the current phase of your Project and how you will access them

  • the details of any other external parties, network users or consumers who are vital for the successful delivery of the current phase of this Project

  • why your Project Partners represent the needs of the end customers or how they will engage the end customer during your Project

  • how BAU teams are being involved in shaping your Project

This question covers these Eligibility Criteria, as outlined in chapter 3 of the SIF Governance Document:

  • Eligibility Criterion 6: Projects must include participation from a range of stakeholders

  • Eligibility Criterion 10: Projects must consider the needs of the end customers and outline how these stakeholders have been, or will be, meaningfully engaged in the development and adoption of the innovation.

Question 12. National Energy System Operator Involvement

You must indicate whether the National Energy System Operator (NESO) is involved in this application.

You must select one option:

  • Yes

  • No

This question covers Eligibility Criterion 6: Projects must include participation from a range of stakeholders, as outlined in chapter 3 of the SIF Governance Document.

Question 13. National Energy System Operator Involvement Justification

Your Project must provide a clear and robust justification for NESO’s involvement in the delivery of your proposed Project.

You must:

  • include a detailed outline of NESO’s intended role and scope

  • the responsibilities, and contributions to successful delivery

  • the details of how this Project aligns with NESO’s statutory functions and system level objectives

If NESO is the lead network or has been involved in the scoping of the application, there is no requirement to complete this section. In these cases, you must mark this section as N/A.

This question covers Eligibility Criterion 6: Projects must include participation from a range of stakeholders, as outlined in chapter 3 of the SIF Governance Document.

Question 14. Project management and delivery

How will you manage your Project effectively? What is your Project plan? What are your milestones? What are the risks associated with your Project?

You must explain:

  • your approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcome

  • any links or dependencies between work packages or milestones

  • your risk management strategy

  • any specific risks in relation to policy and regulatory challenges to deployment, derogations and requests for changes in regulation that your Project is aware of for the Discovery Phase and any future Phases

  • any planned or potential unplanned supply interruptions for consumers, the steps your Project has taken to avoid or investigate how to avoid supply interruptions, and how your Project will ensure consumers have access to the energy services they require

  • any interaction or engagement with energy consumers or any impact your Project may have on existing or future energy consumers and their premises

  • using the Project Management template (PMT), outline your Project approach, the PMT can be found within the SharePoint folder with guidance in the SIF External Handbook

If you or a colleague need access to the SharePoint folder, let us know by contacting SIF_Ofgem@iuk.ukri.org.

You must download the PMT and complete all the worksheets.

In the Key Info worksheet, you must add a key contact for each Project Partner and subcontractors, where applicable.

In the Project Plan worksheet, you must:

  • describe the objectives, tasks, milestones and deliverables for each work package of your Project

  • indicate which work package is meeting which of the Innovation Challenge aims and focus areas

  • indicate the lead partner or subcontractor, where appropriate, and the SIF Funding allocated to each work package

  • indicate the relevant success criteria for each stage gate, milestone and deliverable, where applicable

In the Skills and Experience worksheet, you must:

  • explain why the chosen project partners are suitable for the project

  • describe the skills and capabilities of all project partners and how they help to address the project aims

  • explain how these roles will support the project

  • describe what internal governance will be used to support project deliverables and escalation of any risks

In the Risk Register worksheet, you must:

  • describe the main risks and uncertainties which may hinder the successful delivery of the Project, such as technical, political, policy, regulatory barriers, potential supply interruptions, commercial, managerial, and environmental factors

  • explain how you will mitigate these risks and who will be responsible for the mitigation actions

In the Finance worksheets, you must:

  • complete the PMT, including the cost forecasting tabs against each cost category and partner

  • indicate the total costs, contribution and SIF required against each partnerSeparate Project cost guidance is available in the SIF External Handbook

You must upload the completed PMT as an appendix to this question in support of your full application.

The template must be uploaded as an Excel spreadsheet no larger than 10MB in size. The font must be legible at 100% zoom.

You must also upload a Gantt chart to support your response for this question. It must be uploaded as a separate tab in your Project Management template.

This question covers Eligibility Criterion 8: Projects must be well thought through and have a robust methodology so that they are capable of progressing in a timely manner as outlined in chapter 3 of the SIF Governance Document.

Question 15. Key outputs and dissemination

What are the expected key outputs of your Project and your plan for disseminating them along with any lessons learned?

You must describe:

  • what you want to achieve by the end of your Project’s Initial Discovery Phase and clearly describe what the outputs will be

  • who within the Project team will be responsible for each key output and planned dissemination activity

  • how and where you intend to disseminate your key outputs and lessons learned

This question covers Eligibility Criterion 11: Projects must demonstrate a clear approach to open data, knowledge sharing, and dissemination of learnings, as outlined in chapter 3 of SIF Governance Document.

Question 16. Intellectual Property Rights (IPR)

Although a default Intellectual Property Rights (IPR) arrangement is set out in the SIF Governance Document, Ofgem is willing to consider alternative IPR arrangements on a case by case basis.

You must state whether you are using the default arrangement or any alternative arrangement as your response to this question.

If applicable, you must set out and justify any proposed alternative IPR arrangements for the Discovery phase.

For information on the default Intellectual Property Rights for SIF Projects, see Chapter 12 in the SIF Governance Document.

Question 17. Value for money

How much will your Project cost for the Discovery Phase and how does it represent value for money for the consumer?You must describe:

  • the total Project costs, the amount of SIF funding requested and how the costs and SIF funding for your Project is balanced across the Project partners

  • where relevant, how your Project will meet the minimum compulsory contribution from private funds

  • how each Project Partner will finance their contributions to your Project

  • any subcontractor costs and why they are critical to your Project

  • any additional funding coming from other innovation funds

  • any use of pre-existing assets or facilities

  • any plans for commercialisation of the proposed innovation and how your Project can be moved into business as usual

This question covers Eligibility Criterion 7: Projects must provide value for money and be costed competitively, as outlined in chapter 3 of the SIF Governance Document.

3. Finances

Each organisation in your Project must complete their own Discovery Phase Project costs, organisation details and funding details in the application exclusive of VAT.

Assessment

Your application will be reviewed by three independent assessors based on the content of your application and their skills or expertise relevant to your project. All of the scores awarded will count towards the total score used to make the funding decision unless you are notified otherwise.

Your submitted application will be assessed against the Eligibility Criteria set out in the SIF Governance Document.

Supporting information

Background and further information

Strategic Innovation Fund context

Ofgem recognises that innovation will continue to play a crucial role in delivering best value to energy consumers. Innovation will prepare the regulated energy network companies to deliver net zero greenhouse gas emissions at lowest cost to consumers, while maintaining world class levels of system reliability and customer service, and ensuring no consumer is left behind.

The Strategic Innovation Fund (SIF) has been introduced under the regulated price control mechanism for the Electricity System Operator, Electricity Transmission, Gas Transmission, Gas Distribution and Electricity Distribution sectors.

The SIF seeks to support energy network innovation that contributes to the achievement of Net Zero, while delivering real net benefits to network consumers and supporting innovative businesses to grow and scale. It is delivered in partnership with UKRI, who will work with other funders of innovation so that activities appropriately funded by network consumers are coordinated with activities delivered through other funding providers.

Strategic Innovation Fund competitions will continue to be developed in collaboration with input from the energy networks, innovators, Government, and wider industry. With competitions focussing innovation on the most pressing challenges facing the sector.

The requirements for energy networks and other organisations that wish to participate in the SIF are outlined in the SIF Governance Document.

Benefits to consumers

Potential benefits to consumers as defined by Ofgem may be:

  • cost savings

  • delivering new products, processes, and services

  • improving products, processes, and services

  • enhancing their wellbeing

  • helping consumers access new or existing markets or revenue streams more easily, for example, increasing the share of renewable generators contributing to energy markets, or providing granular information services on locational network capacity

About Ofgem competitions

The Ofgem Strategic Innovation Fund (SIF) programme is a multi-year programme which will deliver competitions with varying scope requirements sharing a common focus on energy network innovation.

Future phases

The Alpha Phase of a Project will focus on preparing and testing the different solutions to the problem identified during the Discovery Phase, ahead of any future large-scale demonstration of the Project. It will also include testing of the riskiest assumptions.

The Beta Phase of a Project focuses on the deployment of the solution to the problem and the duration of the Beta Phase will depend on the scale and complexity of the solution deployed. Beta Phases will range between six months and five years and represent the largest scale phase of the Project.

Further help and information

If you have any questions about the scope requirements of this competition, email SIF_Ofgem@iuk.ukri.org or join our optional applicant drop-in sessions on Tuesdays and Thursdays at 3pm.

Briefing recording and slides

Briefing recording and slides will be available to download here after the briefing event.

If your application is successful

If you have passed your initial assessment and have received an email with a funding offer, you will be asked to complete the Project Setup process on the Innovation Funding Service (IFS).

You will be notified by email on the date published for this competition. Notifications may be sent any time up to 5pm.

You must follow the unique link embedded in your email notification. This takes you to your Innovation Funding Service (IFS) Set Up portal, where we gather the information to set up your Project.

Following your email notification, you will need to provide the following within five days (including weekends and bank holidays):

  • the name and contact details of your Project manager and Project finance lead

  • a finance contact for all Partners

You will have 30 days (including weekends and bank holidays) to complete all of your Project set up. Within this time, you will also be required to submit:

  • Project location

  • any answers to financial queries we have requested

During our financial due diligence checks you must provide a simple quarterly breakdown of the total Project costs needed over the duration of your project, up to the total amount requested. This breakdown must reflect costs at the overall Project level, not at the individual Project Partner level.

Your Project Direction

Once you have successfully completed Project setup, we will issue your Project Direction.

The document will be made available on your IFS portal. You will need to sign and upload this for us to approve.

You must not start your Project before the date stated on your email and Project Direction. Any costs incurred before your agreed start date cannot be claimed as part of your funding.

If your application is unsuccessful

If you are unsuccessful with your application this time, we will notify you and provide feedback.

Protecting your innovation

Secure Innovation campaign has been developed to help founders and leaders of innovative startups protect their technology, competitive advantage, and reputation.

This was developed by UK’s National Protective Security Authority (NPSA) and the National Cyber Security Centre (NCSC).

Data sharing

This competition is jointly operated by Innovate UK, in coordination with the Office of Gas and Electricity Markets (Ofgem) and the Department for Energy Security and Net Zero (DESNZ) (each an ‘agency’).

Any relevant information submitted and produced during the application process concerning your application can be shared by one agency with the other, for its individual storage, processing and use.

This means that any information given to or generated by Innovate UK in respect of your application may be passed on to Ofgem and DESNZ, and vice versa. This would include, but is not restricted to:

  • the information stated on the application, including the personal details of all applicants

  • scoring and feedback on the application

  • information received during the management and administration of the grant, such as Monitoring Service Provider reports and Independent Accountant Reports

Innovate UK may also share any relevant information submitted and produced during the application process concerning your application with Innovate UK’s national and regional UK third parties and partners who may contact you. For more information see how we handle grant applicant and grant holder data.

Innovate UK, Ofgem and DESNZ are directly accountable to you for their holding and processing of your information, including any personal data and confidential information. Data is held in accordance with their own policies. Accordingly, Innovate UK, Innovate UK Business Connect, Ofgem and DESNZ will be data controllers for personal data submitted during the application.

Innovate UK Privacy Policy

Innovate UK Business Connect Privacy Policy

Ofgem Privacy Policy

Department for Energy Security and Net Zero Privacy Policy

Innovate UK complies with the requirements of UK GDPR and the Data Protection Act 2018, and is committed to upholding data protection legislation, and protecting your information in accordance with data protection principles.

The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Contact us

If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.

Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

Innovate UK or any of our partners will not tolerate abusive language in any written or verbal correspondence, applications, social media or any other form that might affect staff.