Early-stage solutions
This is the fifth round of winners under Ofgem Strategic Innovation Fund (SIF).
SIF is a programme delivered in partnership between Innovate UK and the energy regulator, Ofgem to drive the transformation of the UK’s energy networks.
Cycle five includes:
- eight discovery projects (£1 million)
- seven alpha projects (£3.2 million)
- three beta projects (£18.7 million)
Discovery feasibility studies explore early-stage solutions to the energy sector’s most pressing challenges.
Cycle five projects cover multiple challenge areas.
From how networks plan for uncertainty created by renewable generation and shifting demand, to accelerating grid access for large loads, such as data centres, through flexible demand approaches.
Discovery projects include:
- Robotics Integration for Sustainable Energy (RISE): led by Scottish and Southern Electricity Distribution, which will use robotics to enable faster, safer working practices, more efficient operations, and minimise customer disruption
- Green Molecule Project: led by Southern Gas, to develop new routes to decarbonise the gas network through synthetic methane production and inter-seasonal energy storage
Promising ideas
Alpha proof-of-concept projects test promising ideas in more depth.
Two of the projects in this cycle have progressed straight to Alpha after receiving support from other innovation funding schemes.
UK Power Networks lead on Neighbourhood Watts, developing a scalable, community-led model for local energy balancing designed to cut bills, support networks and widen participation in low-carbon energy systems.
Led by National Grid, Automating Marine Plant Ecosystem Restoration for Energy Supply (AMPERES) will test robotic seagrass planting as a way to make marine habitat restoration safer, lower cost and more scalable as offshore grid infrastructure expands.
Large-scale demonstration
At the large-scale demonstration stage, beta projects take innovation closer to market readiness and commercial deployment.
They include ‘Fractal Flow’, collaborative multi energy network project led by Northern Powergrid. It will develop a near-real-time digital twin intended to improve coordination and situational awareness across control rooms.
And two projects led by the National Energy System Operator (NESO):
- Network Security in a Quantum Future (NSiaQF): developing tools to map emerging quantum-related cyber risks to energy assets
- FastPress: a decision-support tool for long-term planning, operation and repurposing of the British gas transmission network, which was progressed straight to beta, building on earlier backing from another innovation funding scheme
Low-carbon energy system
All these successful projects underline the SIF’s pivotal role in supporting ambitious projects that will help transition Britain’s gas and electricity networks as we move towards a low-carbon energy system.
Oversight, facilitation and transparency
Jodie Giles, Deputy Director, Ofgem Strategic Innovation Fund at Innovate UK, said:
Firstly, congratulations to the successful project teams.
We are at a critical point for the SIF and wider energy innovation landscape as we transition to the new RIIO-3 price control period.
As these projects progress the new SIF programmatic approach will ensure they are supported through our Innovation Delivery Groups (IDGs). Designed to provide a collaborative community of projects in a specific innovation challenge area, IDGs will facilitate shared learning, support with tackling barriers and monitor progress against challenge outcomes.
The oversight, facilitation and transparency the SIF programme provides is vital in helping us demonstrate value for consumers, address climate change and support UK businesses to grow and scale.
Bold, scalable solutions
Marzia Zafar, Deputy Director for Digitalisation and Innovation at Ofgem, said:
This latest SIF investment marks an important step in accelerating the pace of innovation needed to transform our energy system. As we move into the RIIO-3 period, it is essential that we continue to back bold, scalable solutions that can deliver tangible benefits for consumers and support the transition to net zero.
The SIF plays a critical role in bringing together industry, academia and innovators to tackle some of the most complex challenges facing the sector. Through a more coordinated, programmatic approach we are strengthening collaboration, enabling shared learning and ensuring that projects are supported to maximise their impact.
By maintaining this focus on delivery, transparency and collaboration, we can ensure that innovation moves beyond demonstration and into real-world deployment – helping to build a more resilient, efficient and decarbonised energy system for the future.
Further information
Ofgem SIF: Cycle five beta, summary of projects approved
Round five, challenge five: Enhanced system visibility and control
Fractal Flow
Fractal Flow is a near-real-time digital twin that will improve visibility and coordination across NESO and Distribution System Operators, to improve control room decision making, coordination and situational awareness.
SIF funding award: £7,947,286
Lead network type: electricity distribution
Project partners:
- Northern Powergrid Northeast (lead)
- Electralink
- Electricity North West
- Fraser Nash Consultancy
- National Grid Electricity Distribution
- NESO
- Oaktree Power
- Southern Electric Power Distribution
- SP Energy Networks Distribution
- UK Power Networks (operations)
NSiaQF
NSiaQF develops tools to map quantum threats to UK energy system assets and prioritise mitigations, strengthening energy network resilience against emerging quantum-enabled cyberattacks.
SIF funding award: £6,191,000
Lead network type: independent system operator and planner
Project partners:
- NESO (lead)
- Cambridge Consultants
- National Gas Transmission
- SP Energy Networks Transmission
- University of Edinburgh
Round five, challenge seven: Whole system optimisation
FastPress
FastPress is a decision support tool for long-term planning, operation and repurposing decisions of the British gas transmission network.
It will enable simulation of complex network scenarios at scale, unlocking new intelligence in resilience and asset reconfiguration.
SIF funding award: £4,534,364
Lead network type: independent system operator and planner
Project partners:
- NESO (lead)
- Faculty Science
- National Gas Transmission
Ofgem SIF: Cycle five alpha, summary of projects approved
Round four, challenge one: Faster network development
Collaborate
Collaborate will analyse data, engage with stakeholders, and learn from existing schemes.
It will enable utility companies and highway authorities better coordinate roadworks to reduce disruption, carbon emissions, and costs.
SIF funding award: £499,721
Lead network type: gas distribution
Project partners:
- Cadent Gas (lead)
- EA Technology
- Greater Manchester Combined Authority
- National Grid Electricity Distribution
- West Midlands Combined Authority
Neighbourhood Watts
Neighbourhood Watts creates a scalable, community led model for local energy balancing that cuts bills, supports networks, accelerates low‑carbon uptake.
It will enable all households to participate through investable, inclusive propositions.
SIF funding award: £499,090
Lead network type: electricity distribution
Project partners:
- UK Power Networks (lead)
- Community Energy South
- Energy Systems Catapult
- Fuse Energy Supply
Round four, challenge three: Embedding resilience
Knapton H2 Storage for H2P
Knapton H2 Storage for H2P is developing demonstrator ready hydrogen storage designs that unlock reliable hydrogen‑to‑power.
It will support regional hydrogen networks, cut curtailment, and accelerate the transition of gas systems from methane to green gases.
SIF funding award: £500,000
Lead network type: gas distribution
Project partners:
- Northern Gas Networks (Lead)
- British Geological Survey
- Centrica Storage
- Ceraphi Energy
- National Gas Transmission
- University of Edinburgh
- Wales & West Utilities
Round four, challenge four: accelerating towards net zero energy networks
Foundation Source Model (FoSMo)
FoSMo develops shared deep learning-based computer vision models to:
- reduce analysis and lifecycle costs
- provide data on rare defects
- deliver consistent assessments and better predictions across UK electricity networks
SIF funding award: £355,985
Lead network type: electricity transmission
Project partners:
- National Grid Electricity Transmission (lead)
- Keen AI
- Electricity North West
- Scottish and Southern Electricity Transmission
- SP Energy Networks Transmission
- UK Power Networks (operations)
Round five, challenge three: High-energy demand point integration
Flexibility and Optimisation for Resilience in Energy Systems (FORTRESS)
FORTRESS is developing resilience focused flexibility product to enable demand side response from large load NHS sites such as hospitals.
SIF funding award: £436,565
Lead network type: electricity distribution
Project partners:
- Scottish and Southern Electricity Distribution (lead)
- Ricardo AEA
- NHS England
- Southern Gas Networks
- Tayside NHS Board
Round five, challenge four: Consumer centric grid solutions
AI Opportunities for Consumer Centric Network Expansion
AI Opportunities for Consumer Centric Network Expansion will assess AI-supported and human-centred engagement tools to improve the efficiency, clarity and inclusion of consumer and local community engagement around network infrastructure upgrades.
SIF funding award: £499,690
Lead network type: gas transmission
Project partners:
- National Gas Transmission (lead)
- PA Consulting Services
- Centre for Energy Equality
Automating Marine Plant Ecosystem Restoration for Energy Supply (AMPERES)
AMPERES is testing robotic seagrass planting to make marine habitat restoration cheaper, safer and scalable for offshore grid expansion.
This will reduce future environmental mitigation costs and help transmission projects meet emerging marine net gain obligations.
SIF funding award: £456,027
Lead network type: electricity transmission
Project partners:
- National Grid Electricity Transmission (lead)
- DNV Services UK
- Ocean Conservation Trust
- Land & Water Services
- Robocean
Ofgem SIF: Cycle five discovery, summary of projects approved
Round five, challenge two: Dynamic modelling
PRObabilistic Methods for Uncertainty in Power Systems (PROMUPS)
PROMUPS will address increased network uncertainty due to increased renewable energy connections, rapid decarbonisation, and evolving demand patterns.
Using probabilistic modelling methods instead of deterministic to provide a realistic likelihood of a range of scenarios.
SIF funding award: £138,674
Lead network type: electricity transmission
Project partners:
- National Grid Electricity Transmission (lead)
- WSP UK
Round five, challenge three: High-energy demand point integration
Flexibility for Large Assets to Rapidly Energise (FLARE)
FLARE will accelerate British transmission connections for large loads (for example data centres), building on EPRI’s DCFlex framework.
By using flexible demand as a condition for earlier access FLARE will help address connection delays and queue management challenges.
SIF funding award: £124,391
Lead network type: electricity transmission
Project partners:
- National Grid Electricity Transmission (lead)
- EPRI
R5C5 Discovery Power Lines
R5C5 Discovery Power Lines is exploring a coordinated approach to developing Britain’s electricity and rail infrastructure.
It will investigate the feasibility, technical requirements and regulatory landscape of combining three-phase power distribution with rail electrification along existing railway corridors.
SIF funding award: £95,822
Lead network type: electricity distribution
Project partners:
- Scottish and Southern Electricity Distribution (lead)
- Network Rail
- Mott MacDonald
Round five, challenge four: Consumer centric grid solutions
Matchmaker
Matchmaker is a service that connects developers with communities to explore shared ownership of new generation.
It will test whether better coordination could help unlock shared ownership at scale, build local support and reduce risk for networks.
SIF funding award: £149,860
Lead network type: electricity distribution
Project partners:
- National Grid Electricity Distribution (lead)
- FutureGov
- Regen SW
R5C5 Discovery Powering Ohms
R5C5 Discovery Powering Ohms will upgrade local electricity networks to support more electric vehicles, heat pumps, and other low‑carbon technologies.
It will use advanced power‑electronics to deliver more network capacity faster, at lower cost, with less disruption to customers and communities.
SIF funding award: £133,526
Lead network type: electricity distribution
Project partners:
- Scottish and Southern Electricity Distribution (lead)
- Energy Innovation Centre
- PNDC
- Newcastle University
- Purewave Form
Robotics Integration for Sustainable Energy (RISE)
RISE will use robotics to transform network management, maintenance, and operations.
RISE will identify where automation can support or replace high risk, labour intensive, disruptive tasks.
RISE will:
- enable faster, safer working practices
- more efficient operations
- minimise customer disruption
SIF funding award: £145,787
Lead network type: electricity distribution
Project partners:
- Scottish and Southern Electricity Distribution (lead)
- Centre for Engineering Education & Development
- Heriot-Watt Services
Round five, challenge five: Enhanced system visibility and control
High Frequency Power Quality for LCT networks (HF-PQ Net)
HF-PQ Net will improve power quality, support planning, and mitigate risks that could undermine grid resilience as LCT adoption increases.
HF-PQ Net will review existing practice, assess high-frequency distortion impacts and define monitoring requirement beyond the present accessible range.
SIF funding award: £104,124
Lead network type: electricity distribution
Project partners:
- Scottish and Southern Electricity Distribution (lead)
- NPL Management
Round five, challenge seven: Whole system optimisation
The Green Molecule Project
The Green Molecule Project will help decarbonise the British gas network and inter-seasonal energy storage.
It will convert curtailed renewable electricity and naturally absorbed oceanic carbon dioxide into synthetic methane, a flexible, storable, low carbon fuel compatible with the existing gas infrastructure.
SIF funding award: £148,257
Lead network type: gas distribution
Project partners:
- Southern Gas Networks (lead)
- Q Power
- University of Exeter
- Wales & West Utilities
- Zero Carbon Marine