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

Ofgem Strategic Innovation Fund Round 5 Discovery C7

Discovery Phase funding from Ofgem's Strategic Innovation Fund (SIF), run by Innovate UK, for collaborative energy network innovation projects that address one of the seven Round 5 Innovation Challenges: advanced energy transmission and networks, dynamic modelling, high energy demand point integration, consumer centric grid expansion, enhanced system visibility and control, green gas, and whole system optimisation. Only an Ofgem licensed gas or electricity network or the National Energy System Operator can lead and receive the award. Each challenge theme also needs a specific type of partner, such as a research institution, technology provider or consumer representative organisation. 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 Alpha Phase.

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
Each Round 5 challenge theme also needs a specific partner type in addition to the lead: Challenge 1: power electronics (theme 1), superconducting (theme 2) or wireless power (theme 3) research or industry partners

What it funds

Collaborative Discovery Phase projects that define the problem and the value in solving it, addressing one of the Round 5 challenges and a primary focus theme:

Challenge 1: Advanced energy transmission and networks (advanced semiconductor technologies for power networks; superconducting technologies for high efficiency transmission; wireless power transmission for grid flexibility)
Challenge 2: Dynamic modelling (advanced grid simulation and optimisation; control strategies for coordination and dispatch of flexible resources)
Challenge 3: High energy demand point integration (demand centre energy forecasting and load growth; flexibility and efficiency strategies to reduce grid impact; accelerating grid connections and infrastructure scaling)
Challenge 4: Consumer centric grid expansion (scalable technical innovations for grid expansion; community engagement and public acceptance strategies)
Challenge 5: Enhanced system visibility and control (advanced monitoring and automated grid control; enhancing control room operations)
Challenge 6: Green gas (network integration and infrastructure readiness; system flexibility and balancing; storage and injection management)
Challenge 7: Whole system optimisation (whole system modelling and scenario analysis; development and demonstration of high impact multivector configurations)

projects must also consider the cross cutting areas: customer focussed, scalability and replicability, data and digitalisation, shared learning, skills and capability, supply chains, and resilience. Projects must deliver a net benefit to consumers and focus on network innovation benefiting GB energy networks.

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
Projects without the mandatory Project Partner type for the chosen challenge theme

How to apply

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
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
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
Send any eligibility queries to SIF_Ofgem@iuk.ukri.org at least five working days before the competition closes
Request access to the SharePoint folder (via SIF_Ofgem@iuk.ukri.org) to download the Project Management Template (PMT)
Start the application on the Innovation Funding Service; the lead invites each Project Partner, who enter their own costs excluding VAT
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
Upload the completed PMT (Excel, with a Gantt chart tab) to question 14 and any optional PDF appendices
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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