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Ofgem Strategic Innovation Fund Round 5 Discovery Phase

Opens:
27.05.2026
Closes:
24.06.2026
Sectors:
Energy
Project Size:
Up to £30 million

The Ofgem Strategic Innovation Fund (SIF) is one of the UK's largest energy innovation programmes, designed to support projects that can deliver net zero at the lowest possible cost to consumers while strengthening the resilience, efficiency, and flexibility of the energy system.

The Discovery Phase is the first stage of a four-phase innovation journey comprising Discovery, Alpha, Beta, and Deployment. Projects funded at this stage are expected to define the problem, validate the opportunity, and build a pathway towards future testing and large-scale demonstration.

Successful Discovery projects may be invited to progress to the Alpha Phase, where solutions are developed and tested ahead of large-scale deployment.

Key Dates and Funding

Competition Opens: 27 May 2026

Competition Closes: 24 June 2026 at 11:00am UK time

Project Start Date: From 1 September 2026

Funding Available:

  • Up to £200,000 per Discovery project
  • Up to £30 million available across all Discovery challenges
  • Projects must provide a minimum 10% contribution from private funding sources (except specific Innovation Charter projects)

Challenge Area 1: Future Energy Networks and System Transformation

The first competition stream focuses on developing technologies and approaches that improve energy infrastructure performance, system flexibility, network visibility, and decarbonisation.

Challenge Themes

  • Advanced Energy Transmission and Networks: Advanced semiconductor technologies, Superconducting transmission solutions, and Wireless power transmission.
  • Dynamic Modelling: Advanced grid simulation and optimisation and Resource coordination and dispatch technologies.
  • High Energy Demand Point Integration: Demand forecasting and load growth analysis, Demand-side flexibility solutions, and Accelerated grid connection approaches.
  • Consumer-Centric Grid Expansion: Scalable network expansion technologies and Public engagement and consumer acceptance strategies.
  • Enhanced System Visibility and Control: Advanced monitoring and automated grid control and Digital twins and control room optimisation.
  • Green Gas: Network integration and infrastructure readiness, System flexibility and balancing, and Storage and injection management.
  • Whole System Optimisation: Whole-system modelling and scenario analysis and Multi-vector energy system configurations.

Challenge Area 2: Accelerating Energy System Delivery

The second competition stream focuses on speeding up infrastructure deployment, improving customer outcomes, enhancing resilience, and enabling greater decentralisation.

Innovation Challenges

  • Industrial and Business Connection Acceleration: Innovations that reduce delays and barriers to connecting large industrial and commercial energy users.
  • Faster Build and Maintenance: Solutions that accelerate network construction, upgrades, and maintenance activities while reducing costs and disruption.
  • Instant Use Domestic Energy Devices: Technologies that enable rapid integration and operation of low-carbon energy technologies within homes.
  • Eliminating Energy Outages: Innovations that improve network reliability, resilience, and customer service during disruptions.
  • Decentralised System Balancing: Solutions that support more flexible and decentralised energy system operation.

Who Can Apply

Lead applicants must be:

  • Ofgem-licensed electricity distribution networks
  • Electricity transmission operators  
  • Gas distribution networks
  • Gas transmission operators
  • Electricity System Operators (ESO) or the National Energy System Operator (NESO)

Projects must be collaborative and involve at least one project partner.

Project partners may include:

  • SMEs
  • Start-ups
  • Universities and research organisations
  • Technology providers
  • Independent researchers
  • Energy sector innovators
  • Other licensed network operators

Ofgem strongly encourages participation from innovative SMEs and high-growth technology companies.

Expected Project Impact

Projects must demonstrate clear consumer benefits, including:

  • Reduced energy system costs
  • Lower consumer energy bills
  • Reduced emissions
  • Increased network flexibility
  • Improved reliability and resilience
  • Faster connections and infrastructure deployment
  • New products and services for the UK energy market

Projects should also address scalability, digitalisation, resilience, customer engagement, skills development, supply chain readiness, and knowledge sharing.

How Inventya Can Help

The Ofgem Strategic Innovation Fund is highly competitive and requires applicants to demonstrate not only technical innovation, but also clear consumer benefits, commercial viability, scalability, and a credible pathway to deployment across Great Britain's energy networks. Building the right consortium and presenting a compelling case for impact are often the factors that separate successful projects from unsuccessful ones.

At Inventya, we work with network operators, SMEs, technology developers, research organisations, and industry partners to develop high-quality SIF applications that align with Ofgem's strategic priorities and maximise the likelihood of progressing through the Discovery, Alpha, Beta, and Deployment phases.

Our team can support you with:

  • Challenge Selection and Strategic Positioning – Identifying the most appropriate challenge area and ensuring your innovation aligns with Ofgem's objectives for net zero, consumer benefit, resilience, and energy system transformation.
  • Consortium Development: Bringing together the right mix of network operators, technology providers, academic partners, and supply chain stakeholders to create a strong and credible project team.
  • Proposal Writing and Bid Development: Crafting persuasive applications that clearly communicate the innovation, technical approach, market need, consumer benefits, and long-term impact of your project.
  • Consumer Benefit and Impact Assessment: Demonstrating how your innovation can reduce costs, improve reliability, accelerate decarbonisation, and deliver measurable value to energy consumers.
  • Commercialisation and Deployment Planning: Developing realistic routes to market and adoption strategies that show how the innovation can be scaled across the UK's energy infrastructure.
  • Financial Planning and Compliance: Supporting project budgeting, funding contributions, eligibility requirements, and governance considerations.
  • Project Delivery Support: Helping successful applicants manage stakeholder engagement, reporting requirements, project milestones, and future phase applications.  

With extensive experience supporting energy, net zero, infrastructure, hydrogen, smart grid, digitalisation, and clean technology projects, Inventya can help transform innovative ideas into fundable projects and position your organisation for long-term success within the UK's evolving energy landscape.

Our experts can assess your eligibility in minutes — book your free consultation today!
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