Ofgem has announced the introduction of a new process which gives innovators more opportunities to apply or re-apply to the Strategic Innovation Fund (SIF) and gain funding quicker than ever before.
SIF projects support efforts to end the era of high energy bills, excessive carbon emissions and energy insecurity by accelerating the transition to clean, homegrown energy. The changes, which follow extensive engagement with stakeholders, will make the SIF more flexible and create more opportunities to apply for funding.
More than £95 million was announced for ten trailblazing projects through the SIF in July of 2023. Projects being developed include technologies that will enable more flexible use of energy, artificial intelligence (AI) and weather data systems to predict energy network risks and faults and circuit breakers that enable the increasing amounts of power generated by offshore wind to be connected to the grid more efficiently.
What impact will these changes have?
- more application windows – rather than a single application window for each phase annually, there will be three each year for all phases which include Discovery, Alpha and Beta
- introducing flexible start dates and duration – project teams can decide which phase to apply to depending on progress. The new approach allows project teams to decide their own start date to suit the project and their resources. Projects will also be able to deliver within a flexible window of time
- projects will be able to move through their life cycles faster – the shortest route from a successful Discovery to Beta phase can now be completed in 23 months, saving up to eight months compared to the previous process
Marzia Zafar, Deputy Director Strategy – Energy Systems Management & Security at Ofgem, said:
“In the past few decades, the energy system has already begun to move from its old way of thinking and doing to adopting new technologies like smart meters and new arrangements to create flexibility in the energy system. There is still more that needs to be done, we need longer duration energy storage and seasonal storage. We need households to have smart devices that automatically flex when the system sends signals. We need nuclear, Carbon Capture Utilisation and Storage (CCUS), offshore wind, onshore wind and digital solutions that can use machine learning to run the energy system efficiently and visibly.
“Great British Innovation has led to some of the greatest transformations in history such as the Agricultural, Industrial, and more recently Digital revolutions. We need this innovative spirit more than ever if we are to meet our ambition for clean energy. What these changes mean is that great innovation will be funded and rewarded seamlessly – just bring us your ideas.”
Delivered in partnership with Innovate UK, the SIF is funded by Ofgem and taps into the best of UK and international innovation while aligning with other public innovation funding for the benefit of energy network users and consumers. Launched in 2021, the fund is expected to invest £450 million by 2026.
Jodie Giles, Innovate UK, Strategic Innovation Fund Programme Director, said:
“As we strive towards net zero, we are continuously improving how we support innovation. The launch of the enhancements to the application process for the Strategic Innovation Fund will increase the frequency of application cycles and streamline our processes. With these improvements we aim to accelerate the delivery of transformative solutions and drive forward the energy transition with greater efficiency and flexibility.”
Part of the RIIO 2 price controls, the SIF is a funding mechanism for the Electricity System Operator, electricity transmission and electricity distribution, gas transmission and gas distribution companies, working in partnerships with other innovators.
