Closes 21 October 2026
Ofgem Strategic Innovation Fund Round 5 Discovery C7
Office of Gas and Electricity Markets (Ofgem), Ofgem Strategic Innovation Fund
- How much
- £50k–£200k
- Closing date
- 21 October 2026
- Opens
- 21 September 2026
- Where
- UK-wide
- Total fund
- £30 million
- Who can apply
- Private Sector
- Aimed at
- Any sector
Organisations can apply for a share of up to £30 million exclusive of VAT, for collaborative Discovery Phase Projects that meet the Round 5 challenges. This funding is from the Ofgem Strategic Innovation Fund.
About the grant
This competition is delivered by Innovate UK 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 four phase competition:
• Discovery
• Alpha
• Beta
• Deployment
There are seven challenge areas in the Discovery Phase:
• Challenge 1: Advanced energy transmission and networks
• Challenge 2: Dynamic modelling
• Challenge 3: High energy demand point integration
• Challenge 4: Consumer centric grid expansion
• Challenge 5: Enhanced system visibility and control
• Challenge 6: Green gas
• Challenge 7: Whole system optimisation
You are encouraged to consider all areas of your Project from the initial Discovery phase through to commercialisation following Alpha, Beta and Deployment.
This competition is open to collaborative applications only.
Your Project must address one of the challenges for the initial Round 5 Discovery Phase. You must plan for the development of your Project to meet a Round 5 Challenge through to:
• live testing in the Alpha Phase
• large scale demonstration in the Beta Phase
• deployment of the proven solution into business as usual at the Deployment Phase
It is the responsibility of the lead applicant to ensure that you are entering the appropriate challenge competition and theme for your Project. You will not be able to transfer your application, and it will not be sent for assessment if it is out of scope.
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.
This competition closes at 11am UK time on the deadline stated in this Innovate UK competition brief. We cannot guarantee other government, or third party sites will always show the correct competition information.
Funding type
Third party
Project size
Your Discovery Phase Project must have a total requested funding of no more than £200,000 exclusive of VAT.
Accessibility and Inclusion
We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments for people who have a disability or a long-term condition and face barriers applying to us.
You can contact us at any time to ask for guidance.
We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.
You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).
Your proposal
This competition is delivered by Innovate UK 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.
Each Round 5 Innovation Challenge as listed in the Strategic Innovation Fund - Round 5 Innovation Challenge document has different aims.
You must select which challenge your Project is working on.
There are seven challenge areas in the Discovery Phase:
• Challenge 1: Advanced energy transmission and networks
• Challenge 2: Dynamic modelling
• Challenge 3: High energy demand point integration
• Challenge 4: Consumer centric grid expansion
• Challenge 5: Enhanced system visibility and control
• Challenge 6: Green gas
• Challenge 7: Whole system optimisation
Your Project must meet the eligibility criteria of the Strategic Innovation Fund (SIF), as stipulated in the SIF Governance Document.
Applicants must demonstrate that the Projects deliver a net benefit to consumers through:
• financial cost reductions, for example, in operating the network, energy bills, users of network services
• emission reduction
• access to revenues for network users
• introducing new products, process and services to the UK energy market
Your proposal must focus on network innovation that can benefit GB energy network infrastructure, consumers, operation, and utilisation.
You 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. Successful applicants will be invited to apply for Alpha Phase.
The Discovery Phase of a Project will define the problem and the value in solving it. It will also facilitate a common understanding of consumers’ and network users’ needs from the innovation and identifying constrain
Who can apply
Who can apply
This award has been designed to be provided on a no subsidy basis, as defined in the Subsidy Control Act 2022 .
This means to be eligible, the award will not give an economic advantage to one or more organisations, and you must not be acting economically as an organisation within the meaning of the act.
In limited circumstances, EU State aid rules may apply under the Windsor Framework and a ‘No Aid’ award may be given in accordance with the R&D&I Framework.
Your Project
Your Project must:
• have total eligible Strategic Innovation Fund (SIF) requested funding of no more than £200,000, exclusive of VAT
• provide a minimum of 10% of total Project costs as a compulsory contribution from private funds
• start after 1 January 2027
• end by 31 May 2027
• be completed within the five month window
Your Project deliverables must be completed within the five month window stated.
You are required to fulfil all monitoring requirements, for example, end of phase meetings and Project show and tells, further guidance will be provided.
Projects must always start on the first of the month, even if this is a non-working day and this must be stated within your application. You must not start your project until your Project Direction has been received and approved. Your Project start date will be reflected in your Project Direction if you are successful.
You must only include eligible project costs in your application. See our overview of eligible project costs .
Lead organisation
To lead a Discovery Phase Project, you must:
• be an Ofgem licensed gas distribution network, gas transmission, electricity transmission, electricity distribution, or National Energy System Operator (NESO)
• work with at least one other organisation as a Project Partner
Project Partners
Each Discovery Phase Round 5 Challenge has specific Project partner requirements in addition to the lead network licensee.
The eligibility requirements for the Discovery Phase Challenges are different for each Challenge theme:
Challenge 1: Advanced energy transmission and networks:
• Theme 1: A research organisation or industry partner with experience in power electronics for grid applications
• Theme 2: A research institution or industry partner with expertise in superconducting technologies
• Theme 3: A research organisation or technology provider in wireless power systems
Challenge 2: Dynamic modelling:
• Theme 1: A research institution or technology provider with expertise in real time network modelling, forecasting and optimisation
• Theme 2: Organisations with capability in dynamic modelling, network control or automation for resource coordination
Challenge 3: High energy demand point integration:
• Theme 1: A research institution or industry partner with expertise in energy forecasting, demand modelling, and load profiling
• Theme 2: A research institution or technology provider in demand side response and grid flexibility
• Theme 3: A policy expert, regulatory specialist, or network planner with experience in grid connection processes and infrastructure planning
Challenge 4: Consumer centric grid expansion:
• Theme 1: Consumer representative organisation
• Theme 2: Consumer representative organisation
Challenge 5: Enhanced system visibility and control
• Theme 1: A research institution, technology provider, or grid analytics specialist with expertise in real time monitoring, AI driven diagnostics, and grid automation
• Theme 2: A research institution, control room specialist, or automation solution provider with expertise in digital twins and operator decision support tools for complex environments
Challenge 6: Green gas
• Theme 1: A research institution, technology provider, or infrastructure specialist with expertise in gas blending, pressure management, and grid adaptation
• Theme 2: A research institution, flexibility solutions expert, or control system developer specialising in real time forecasting, injection control, and balancing strategies
• Theme 3: A research organisation or technology developer with expertise in gas compression, storage, and injection management
Challenge 7: Whole system optimisation
• Theme 1: National Energy System Operator (NESO)
• Theme 2: A technology provider or Research institution specialising in cross sector energy modelling and NESO
You are encouraged to have other Project Partners in addition to the mandatory requirements listed above.
Your Project Partners can include a variety of third party innovators such as:
• start-ups
• SMEs
• suppliers
• academics
• independent researchers
• disruptors
• other licenced energy network companies
This list is not intended to be exhaustive.
The Project Direction will be awarded to a single legal entity only.
If successful, the Project Direction will be awarded only to the lead network (Funding Party). Project Partners must be responsible for at least one deliverable in the Discovery Phase.
Ofgem are looking for proposals that involve all the necessary stakeholders relev
How to apply
Before you start
You must read the guidance on applying for a competition on the Innovation Funding Service before you start.
SIF Governance Document - terms and conditions (T&Cs)
The SIF Governance Document is specific to the Ofgem Strategic Innovation Fund (SIF). It is issued by Ofgem further to the SIF Licence Condition and sets out the governance and administration of the SIF. Network operators and the National Energy System Operator (NESO) must comply with the SIF Governance Document.
The SIF Governance Document provides more information on:
• Eligibility Criteria
• application process
• assessment of Projects
• Project delivery and monitoring
• funding arrangements
• Project administration, including compliance and audits
• intellectual property rights and royalties
• learning and collaboration, including external stakeholder relationship development, information sharing and reporting
This list is not exhaustive.
If your application is successful, Ofgem will issue a Project Direction to the network licensee leading the Project, which confirms the special conditions, deliverables, costs and milestones for which they are accountable during the upcoming Phase.
It is the responsibility of each partner in the Project to ensure that they have read the SIF Governance Document . By ticking the T&Cs box in IFS ahead of the application being submitted, you are confirming that you have read the SIF Governance Document and are satisfied that you understand the regulatory framework.
You can contact us if there is any aspect of the SIF you do not understand.
Before submitting, it is the lead applicant’s responsibility to make sure:
• that all the information provided in the application is correct
• your proposal meets the eligibility and scope criteria
• all sections of the application are marked as complete
• that all partners have completed all assigned sections and accepted the terms and conditions (T&Cs)
You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.
What we ask you
The application is split into three sections:
• Project details.
• Application questions.
• Finances.
Accessibility and Inclusion
We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments for people who have a disability or a long-term condition and face barriers applying to us.
You can contact us at any time to ask for guidance.
We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.
You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).
From GOV.UK Find a Grant. Contains public sector information licensed under the Open Government Licence v3.0. Last updated 17 October 2026.