GrantRadar

Office of Gas and Electricity Markets (Ofgem), Ofgem Strategic Innovation Fund, delivered by Innovate UK

Ofgem Strategic Innovation Fund Discovery C7

Discovery Phase funding from Ofgem's Strategic Innovation Fund (SIF), run by Innovate UK, for collaborative energy network innovation projects that address the five new SIF Innovation Challenges for 2026 to 2033: industrial and business connection acceleration, faster build and maintenance, instant use domestic energy devices, eliminating energy outages, and decentralised system balancing. Only an Ofgem licensed gas or electricity network or the National Energy System Operator can lead and receive the award. Other organisations, such as start-ups, SMEs, suppliers and academics, take part as Project Partners. Projects can request up to £200,000 (excluding VAT), must put in at least 10% from private funds and run for five months, and successful projects can apply for the later Alpha, Beta and Deployment phases.

Apply on the funder’s site
You could get
£50,000 – £200,000
Closes in
3 days left
21 October
Effort
Heavy
budgets, references, often several stages

Who can apply

  • The lead must be an Ofgem licensed gas distribution network, gas transmission, electricity transmission or electricity distribution network licensee, or the National Energy System Operator (NESO)
  • The application form lists the eligible lead networks: Cadent, NESO, the four National Grid Electricity Distribution licensees, National Grid Electricity Transmission, National Gas Transmission, Northern Gas Networks, Northern Powergrid (Northeast and Yorkshire), SSEN (SHEPD and SEPD), SGN (Scotland and Southern), SHE Transmission, SP Electricity North West, SP Distribution, SP Manweb, SP Transmission, the three UK Power Networks licensees, and Wales & West Utilities
  • Applications must be collaborative: the lead works with at least one other organisation as a Project Partner
  • Partners can include start-ups, SMEs, suppliers, academics, independent researchers, disruptors and other licensed network companies, and each must be responsible for at least one Discovery deliverable
  • Ofgem particularly encourages SME technology developers and growth companies
  • The lead and at least one other organisation must request funding
  • Non-funded partners can include UK, EU and non-UK organisations
  • The Project Direction (award) goes only to the lead network
  • Projects must request no more than £200,000 SIF funding (excluding VAT), provide at least 10% of total project costs from private funds, start after 1 January 2027 and finish within five months, by 31 May 2027
  • The award is made on a no-subsidy basis: organisations must not be acting economically within the meaning of the Subsidy Control Act 2022
  • Projects must meet the SIF Governance Document eligibility criteria
  • Previously unsuccessful SIF projects can re-apply only with Ofgem's approval, after showing material change
  • For this competition there are no specific Project Partner requirements beyond the lead network licensee

What it funds

Collaborative Discovery Phase projects that define the problem and the value in solving it, and build a common understanding of consumers' and network users' needs, addressing one of the 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
  • Network innovation that can benefit GB energy network infrastructure, consumers, operation and utilisation, and delivers a net benefit to consumers through cost reductions, emission reduction, access to revenues for network users or new products, processes and services

projects should contribute to the cross cutting areas of cost reduction, customer outcomes, economic growth and decarbonisation, and plan development through live testing (Alpha), large scale demonstration (Beta) and deployment into business as usual.

What it will not fund

  • Projects that do not meet the requirements of the SIF Governance Document
  • Non-collaborative (single organisation) applications
  • Projects requesting more than £200,000 SIF funding (excluding VAT) or without the 10% minimum private contribution
  • Organisations acting economically, where the award would give an economic advantage (no-subsidy basis)
  • Funding that would breach UK sanctions

How to apply

  1. Read the competition brief, the SIF Governance Document and the SIF External Handbook; optionally watch the 21 September 2026 briefing and join the Tuesday and Thursday 3pm drop-in sessions
  2. If you are not a network licensee, find a licensed network or NESO to lead (Innovate UK Business Connect's Energy team can help); the lead network applies
  3. If you are resubmitting a previously unsuccessful SIF project, email SIF_Ofgem@iuk.ukri.org, copying networks.innovation@ofgem.gov.uk, for approval as soon as possible, explaining how the project has materially changed
  4. Send any eligibility queries to SIF_Ofgem@iuk.ukri.org at least five working days before the competition closes
  5. Request access to the SharePoint folder (via SIF_Ofgem@iuk.ukri.org) to download the Project Management Template (PMT)
  6. Start the application on the Innovation Funding Service; the lead invites each Project Partner, who enter their own costs excluding VAT
  7. Complete the project details (public descriptions, chosen challenge) and answer the 17 application questions (up to 400 words each), including a link to an unlisted YouTube video of up to 120 seconds
  8. Upload the completed PMT (Excel, with a Gantt chart tab) to question 14 and any optional PDF appendices
  9. Make sure all partners have completed their sections and accepted the T&Cs (confirming they have read the SIF Governance Document), then submit by 11am on 21 October 2026

assessed by three independent Expert Assessors against the SIF Eligibility Criteria; all applicants get feedback. Applications cannot be transferred between this competition and its parallel SIF Discovery competition. Successful projects must give a show and tell, and only they are invited to apply for the Alpha Phase.

Have ready

  • Completed Project Management Template (Excel, no larger than 10MB), covering Key Info, Project Plan, Skills and Experience, Risk Register and Finance worksheets, with a Gantt chart as a separate tab (question 14)
  • Link to an unlisted YouTube video of no more than 120 seconds summarising the problem, the solution and the benefits to customers (question 8); it must stay available for 12 months
  • Optional PDF appendix for question 7 (portfolio integration), no larger than 10MB
  • Optional PDF appendix for question 9 (innovation justification), up to two A4 pages, no larger than 10MB

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