Phased approach
The successful projects secured funding through the SIF cycle two competition process that closed at the end of February this year.
Through a phased approach, the aim of the SIF is to find many potential ideas and develop those with the greatest promise as quickly as possible.
The 15 funded projects are spread across the three phases of the SIF:
- 10 feasibility discovery projects lasting up to five months (£1.3 million)
- three proof of concept alpha projects lasting up to eight months (£1.4 million)
- two large beta demonstrator projects lasting up to five years (£9.3 million)
Achieving net zero
The projects will address the most pressing challenges energy networks face to achieve net zero, as identified in the SIF round three and SIF round four challenges.
Addressing climate change
The SIF provides support for large beta demonstrator projects to go on to deployment in Britain’s energy networks.
These projects will be pivotal in addressing climate change and achieving the government’s target of net zero by 2050.
There are two projects that have progressed through to large demonstrator phase in cycle two, bringing the total to 24 projects funded at beta.
Vulnerability Evaluation for Resilience Investment and Flexibility (VERIFY)
VERIFY will address round three, challenge two: novel technical, process and market approaches to deliver an equitable and secure net zero power system.
As society moves towards net zero, some people will easily participate in the energy transition, others, either by choice or factors outside their control, will not.
VERIFY will ensure an equitable transition for all consumers.
Collaborating with local authorities, charities, and powerful computing technologies, VERIFY will evaluate the most cost efficient and beneficial solutions for energy networks and consumers alike.
Led by Scottish Hydro Electric Power Distribution, VERIFY will combine data on networks, properties, consumer demographics and smart meters.
This first of its kind approach will ensure distribution network operators (DNOs) are able to better tailor network investments to match the needs of local consumers.
FutureGrid CO2
FutureGrid CO2 is the final phase of a suite of carbon dioxide (CO2) projects.
Addressing round four, challenge three: embedding resilience, what started out as literature reviews and feasibility studies, will now progress to physical testing and demonstration.
National Gas will use its FutureGrid facility to demonstrate how as an alternative to natural gas CO2 will flow through its pipes.
Completing underexplored CO2 venting, ruptures and real-time impurity corrosion tests.
The findings of this project will show how National Gas can repurpose parts of its network to transport gaseous-phase CO2 safely.
Transforming our energy system
Jodie Giles, Deputy Director for Ofgem SIF at Innovate UK, said:
Congratulations to all the project teams who have successfully secured SIF funding.
The phased approach of SIF is designed to enable open exploration of bold transformational ideas at speed and scale.
Not all the Discovery and Alpha projects will go through to the Beta demonstration phase.
But it’s OK to fail, so long as projects share learnings and insights effectively to help others overcome barriers and achieve solutions.
All of these projects have the potential to transform our energy system.
They will deliver real value for customers who use and pay for our energy network.
They will ensure we have networks that are capable of delivering clean power by 2030 and net zero by 2050.
They will help us reach the ultimate goal of addressing climate change and ensuring our planet is habitable now and for future generations.
Support our move to energy independence
Marzia Zafar, Deputy Director for Energy Systems Management and Security at Ofgem, said:
Decarbonising Britain’s energy system is critical to reach net zero targets, and it’s through bold ideas that we’ll reach that goal.
That’s why Ofgem is leading the way in funding innovative new projects that’ll reduce carbon emissions, support our move to energy independence and lower bills for consumers.
Looking for projects that address existing issues, from faster network development to improved resilience, the challenges Ofgem set out have been designed to support ideas that will change the way our energy system works.
I’m looking forward to seeing how these projects progress and accelerate our journey to net zero.
To find out more about all the projects see the SIF: cycle two funding decisions on the Ofgem website.
Further information
Summaries of project approved in Ofgem SIF: cycle two beta
Round three, challenge two: novel technical, process and market approaches to deliver an equitable and secure net zero power system
VERIFY
For the first time, VERIFY will combine data on networks, properties, consumer demographics and smart meters to ensure DNOs are able to better tailor network investments to match the needs of local consumers.
Funding award: £5,331,569
Lead network type: electricity distribution
Project partners:
- Scottish Hydro Electric Power Distribution (lead)
- Quarriers
- Smith Institute
- Southern Gas Networks
- Centre for Sustainable Energy
- E.ON Next Energy
- CGI IT UK
- Aberdeen NHT 2014 LLP
- Smart DCC
Round four, challenge three: embedding resilience
FutureGrid CO2
The final phase of a suite of CO2 projects.
It uses National Grid’s FutureGrid facility to look at how National Gas can repurpose parts of its network to transport gaseous-phase carbon dioxide safely.
Funding award: £3,968,924
Lead network type: gas transmission
Project partners:
- National Gas Transmission (lead)
- NaTran
- Pipeline Integrity Engineers
- GL Industrial Services UK
Summaries of projects approved in Ofgem SIF: cycle two alpha
Round four, challenge one: faster network development
Data to Insights (D2I)
D2I will improve the value and insight customers gain from our open data.
It will build and test use cases to trigger a step change in the engagement with present and future energy data.
Funding award: £499,820
Lead network type: electricity distribution
Project partners:
- Scottish Hydro Electric Power Distribution (lead)
- University of Strathclyde
- CGI IT UK
- Energy Systems Catapult
- Roadnight Taylor
Round four, challenge three: embedding resilience
B-Linepack+
B-Linepack+ flexibility is key for gas transmission to provide system resilience by management of swings within operational limits.
Embedded resilience systems, in the form of lined rock shafts, are being investigated to supplement loss in linepack capability.
Funding award: £498,381
Lead network type: gas transmission
Project partners:
- National Gas Transmission (lead)
- University of Edinburgh
- Premtech
- Guidehouse Europe
- Gravitricity
- Southern Gas Networks
- Energy Reform
Future Operability of Gas for System Integration (FOGSI)
The FOGSI project will develop an integrated hierarchical network modelling framework for simulating the operation of future Great Britain energy system scenarios with highly interconnected gas and power networks.
Funding award: £435,610
Lead network type: gas transmission
Project partners:
- National Gas Transmission (lead)
- University of Edinburgh
- National Grid Electricity Transmission
- TNEI Services
- Energy Systems Catapult
Summaries of projects approved in Ofgem SIF: cycle two discovery
Round four, challenge one: faster network development
Project VOLT
The project focuses on integrating renewable energy, storage, hydrogen, and smart technologies to optimise flexibility and reliability in high-emission zones like ports, airports, and manufacturing hubs.
Funding award: £147,200
Lead network type: electricity distribution
Project partners:
- Northern Powergrid (Northeast)(lead)
- Newcastle University
- Northern Gas Networks
- Lane Clark and Peacock
- Port of Tyne Authority
RAPID: automated routing infrastructure
The Winser report makes recommendations concerning faster delivery of new transmission infrastructure including standardisation and automation of route design for new transmission lines.
RAPID will examine the problems that need to be solved to address these recommendations, accelerating the pace of network development to meet net zero goals.
Funding award: £139,663
Lead network type: electricity transmission
Project partners:
- Scottish Hydro Electric Transmission (lead)
- Ove Arup & Partners
- National Grid Electricity Transmission
- National Grid Electricity System Operator
- SP Transmission
- Volquant
Conductor
Traction bulk supply points (BSPs) provide large capacity grid connections for the rail traction system.
Traction power is typically very peaky, and capacity is not optimally utilised.
Installing battery storage facilities and unlocking connection agreements at traction BSPs could shift rail energy demand away from peak periods to:
- unlock capacity for other customers
- support regional balancing of supply and demand
- meet demands for flexibility services in areas with network constraints
- increase commercial scope for new traction connected generation capacity
- replace curtailment with load shifting and export capability
Funding award: £138,335
Lead network type: electricity distribution
Project partners:
- UK Power Networks (Operations)(lead)
- Energy systems catapult
- Riding Sunbeams Apollo
Super dual purpose power reserves (DuPPR)
Research from the University of Reading estimates there is over two gigawatt hours of backup power in the UK that could be used for other purposes such as regional balancing or flex.
Super DuPPR will explore unlocking this potential capacity to accelerate the decarbonisation of reserve power systems and reduce the net load increase on the electricity network.
Funding award: £119,010
Lead network type: electricity distribution
Project partners:
- UK Power Networks (Operations)(lead)
- Met Office
Round four, challenge two: greater heat flexibility
Flexibility and Optimisation for Resilience in Energy Systems (FORTRESS)
The transition of protected sites, for example, hospitals and military sites, to electrified heating will require major infrastructure investment to provide additional capacity while maintaining the requisite level of resilience.
FORTRESS’ hospitals use case will analyse innovative heat flexibility strategies for DNOs.
It will demonstrate a coordinated and flexible approach to heat demand that offers the opportunity to offset costs.
Funding award: £146,524
Lead network type: electricity distribution
Project partners:
- Scottish Hydro Electric Power Distribution (lead)
- Ricardo-AEA
- Tayside NHS Board
Hot Chips
Hot Chips will demonstrate how DNOs and data centres can work collaboratively to use surplus heat to decarbonise district heat networks.
The project will use water-sourced heat pumps in an ambient loop array to reduce electrical demand and increase system efficiency.
Coupled thermal storage will provide thermal flexibility for homes as well as electrical demand flexibility for DNOs.
Funding award: £133,079
Lead network type: electricity distribution
Project partners:
- UK Power Networks (Operations)(lead)
- The University of Sheffield
- Northern Powergrid (Northeast)
- EDF Energy R&D UK Centre
- Dalkia Energy Services
Round four challenge three: embedding resilience
Gas transmission asset resilience through network transitions
As the energy system transitions away from unabated natural gas and parts of the gas network are either decommissioned or repurposed to support the UK’s net zero goals, there is an increased risk of unintentional third-party damage to the network.
Any supply interruptions to the transmission network would directly impact security of supply across the country and have a significant cost to customers including power generators, industry and domestic users.
This project will investigate the benefits of moving from expensive, low frequency and manual network inspections to innovative artificial intelligence (AI) assisted surveillance technologies in combination with satellite imagery and drones.
Funding award: £97,650
Lead network type: gas transmission
Project partners:
- National Gas Transmission (lead)
- Digital Catapult Services Ltd
Future Agriculture Resilience Mapping (FARM)
With approximately 209,000 farm holdings in 2023, energy networks must adapt prepared to meet different future rural energy demands driven by greenhouse gas reductions and climate change adaptation.
The FARM project will:
- support UK food production and security by understanding future energy requirements, transition pathways and the associated network requirements
- identify clear commercial, policy and planning actions for DNOs, the agricultural sector and policymakers
Funding award: £133,092
Lead network type: electricity distribution
Project partners:
- Scottish Hydro Electric Power Distribution (lead)
- Energy Systems Catapult
- The James Hutton Institute
- Scottish Agricultural Organisation Society
Smart Hydrogen and Resilient Energy Decarbonisation (SHARED)
Rural communities are more vulnerable to climate change impacts and more likely to be worst served customers (WSCs).
Decarbonising these areas could increase electricity demand, exacerbate resilience issues, be expensive and take time, especially for WSCs.
SHARED will explore the potential of low-cost hydrogen production and storage as an alternative solution to improve the resilience of these communities.
Funding award: £149,060
Lead network type: electricity distribution
Project partners:
- UK Power Networks (Operations)(lead)
- Frazer-Nash Consultancy
- Centre for Sustainable Energy
- The First Element Group
Round four challenge four: accelerating towards net zero energy networks
Optimisation and Diagnostics for Innovative Networks (ODIN)
Through the application of AI and machine learning, ODIN will uncover novel insights into high-voltage direct current asset behaviour.
This will improve operational efficiency, reliability and resilience to support the transition to a net zero energy network.
Funding award: £149,612
Lead network type: Electricity transmission
Project partners:
- Scottish Hydro Electric Transmission (lead)
- Ross Robotics