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Net Zero - Ofgem Round 2: Discovery – Accelerating decarbonisation of major energy demands

Project Size:
Award sizes: up to £150,000


This competition is delivered 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 3 phase competition:

1. Discovery

2. Alpha

3. Beta

There are 4 challenge competitions in Discovery Phase:

Ofgem Round 2: Supporting a just energy transition

Ofgem Round 2: Preparing for a net zero power system

Ofgem Round 2: Improving energy system resilience and robustness

Ofgem Round 2: Accelerating decarbonisation of major energy demands (this competition)

It is the responsibility of the lead applicant to ensure that they are entering the appropriate challenge competition for their project.

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.

Funding type - Third-party

Project size - Your Discovery Phase Project must last up to three months and have a total requested funding of no more than £150,000, exclusive of VAT.

Your proposal

The Strategic Innovation Fund (SIF) aims to deliver net zero at lowest cost to consumers and support innovative businesses to grow and scale.

This can include decarbonising gas and electric energy distribution, transmission networks and benefit the consumer. These projects should help shape the future of the gas and electricity networks and succeed commercially where possible.

The aims of this competition are to:

develop technical, social, economic or political approaches to integrated planning and connecting decarbonised heat and transport demand that reduces overall costs and timescales

integrate energy efficiency together with flexibility to reduce costs of connecting and operating decarbonised heat and transport demands

demonstrate coordination between flexibility, energy efficiency and regional or local energy planning activities that reduce costs and improves consumer experience for decarbonisation

Your project must focus on and address at least one of the following themes:

Theme 1: approaches to effectively facilitate, manage, and integrate multiple demands and demand-side solutions, for example, heat and transport, flexibility or energy demand reduction

Theme 2: integrating heat networks for wider energy network management

Theme 3: improving efficiency at different levels in the energy system, for example, loss reduction across networks, assessing and realising value of demand reduction to the energy network

Your project must meet the eligibility criteria of the Strategic Innovation Fund (SIF), as stipulated in the SIF Governance Document.

Over the three phases, applicants must demonstrate that projects deliver a net benefit to network consumers through:

financial cost reductions (operating the network, energy bills, users of network services)

carbon emission reduction

access to revenues for users of energy network services; or introducing products, process and services that are new to the UK energy market

Your proposal must focus on network innovation that can be deployed or applied to benefit GB energy networks infrastructure, network consumers, operation, and utilisation.

Your project 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. Only successful applicants from Discovery Phase will be invited to apply for Alpha Phase.

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.

Projects we will not fund

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

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